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Administrator Guide
Last Updated: 2024-12-13
Map Earnings to Compensation Elements

Map Earnings to Compensation Elements

Create an earning, including any relevant related calculations in the
Calculation Details
 section. See Steps: Create Earnings.
Create Compensation Elements, such as:
  • Bonus
  • Commission
  • Hourly
  • Salary
  • Superannuation (AUS)
Security:
Set Up: Payroll (Calculations - Payroll Specific)
 domain in the Core Payroll functional area.
You can configure Workday to process midperiod events using proration by mapping an earning to a compensation element (like a bonus or commission). Proration divides a payroll period into subperiods with separate payroll calculations before and after the event. Mapping the applicable earning to a compensation element ensures Workday retrieves the correct rates, percentages, and amounts to process the event.
Example: A worker receives a mid-period raise. You configure the relevant earning that includes the worker's pay to include
Compensation Change
 to account for the update in pay.
  1. Access the
    Create Earning
     task.
  2. Complete the task:
    Option Description
    Events Causing Pay Component Proration
    For earnings with a defined proration method and a proration calculation.
    Select
    Compensation Change
     to prorate the earning amount in response to compensation changes for a worker.
    Compensation Element
    Select 1 or more compensation elements.
    For Payroll for the U.S., set up all earnings attached to a specific compensation element the same way for FLSA. Make sure that you don't use an FLSA-specific and a non-FLSA specific earning for the same compensation element. Example: 2 bonus earnings have the compensation element
    Spot Bonus
    , but 1 is FLSA-specific and the other is non-FLSA specific. This configuration causes Workday to process non-FLSA earnings by FLSA periods, even though this earning isn’t subject to FLSA wages.