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Administrator Guide
Last Updated: 2023-06-23
Set Up Earning or Deduction Limits

Set Up Earning or Deduction Limits

Map the pay components to a plan or other source for the value that the earning or deduction is calculating:
  • Compensation.
  • Time off.
  • Time tracking.
  • Benefits.
  • Payroll input.
To set multiple limits on pay components, create a pay accumulation that sums the limited pay components.
Security:
Set Up: Payroll (Calculations - Payroll Specific)
 domain in the Core Payroll functional area.
You can define 1 or more limits for an earning or deduction.
For position-based earnings or deductions (when
Position
 populates the
Calculation Worktag
 field), the limits apply to each position.
When you use the current period as the balance period, Workday applies all amounts towards the period limit. Example: You configure a limit on the employer match percentage for retirement plans. When you run payroll, some workers reach that limit in on-cycle payroll. Then, if you run on-demand bonus payments for those workers, Workday doesn't process further employer contributions. Conversely, if you run on-demand payments first for the workers, Workday applies the limit on those payments before on-cycle payroll.
  1. Access the
    Limits
     section of the
    Effective Dated
     tab on the
    Create Earning
     or
    Create Deduction
     task.
  2. As you complete the task, consider:
    Option Description
    Value
    The limit that applies to the pay component.
    Balance Period
    The period to which the limit applies. Example: A month-to-date (MTD) or year-to-date (YTD) balance period.
    Based On
    To limit only the current pay component itself, leave this field blank. Workday automatically uses the value of the current pay component.
    To limit the combined value of multiple pay components, including the current one, select the pay accumulation that sums them, or select
    Create
    Create Pay Accumulation
     from the prompt.
    You can't base a limit on a pay balance. Use the
    Balance Period
     field to identify the period to which the limit applies.
    Include Current Value
    Use this field only when the limit applies to a pay accumulation. It tells Workday the order in which to resolve the pay components as the pay accumulation nears its limit. Workday considers the values of the pay components only on the current pay result.
    You can list multiple pay components in any order. Workday examines all of the pay components in the pay accumulation, and processes the one where
    Include Current Value
     is empty first. It then examines the remaining pay components and determines which one has no pay components left to process before it, and processes that one, and so forth. To control the order to take the pay components when the accumulation reaches the limit:
    • On the pay component to take first, leave the
      Include Current Value
       field blank.
    • On the pay component to take second, select the first pay component.
    • On the pay component to take third, select the first and second pay components.
    Example: The limit is based on a pay accumulation that sums the year-to-date values of pay components A and B. You want Workday to resolve A first:
    • On A, don't select a value.
    • On B, select
      A
      .
    If the accumulation includes a third pay component, and you want Workday to resolve A and B first:
    • On A, don't select a value.
    • On B, select
      A
      .
    • On C, select
      A
       and
      B
      .
    Workday processes:
    • A first, because it's empty.
    • B second, after processing A.
    • C third, after processing A and B.