Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2024-12-13
Set Up Pay Component Related Calculations

Set Up Pay Component Related Calculations

  • Create an earning or deduction.
  • Create a related calculation or identify an existing one to use.
  • Security:
    Set Up: Payroll (Calculations - Payroll Specific)
     domain in the Core Payroll functional area.
You can configure Workday to automatically calculate related calculations as part of an earning or deduction. When you add a related calculation to an earning or deduction definition, Workday creates a pay component related calculation (PCRC).
Example: The
Hourly Pay
 earning uses a calculation of
Hours (unprorated)
 *
Rate
, where
Hours (unprorated)
 and
Rate
 are related calculations. When you assign the related calculations to the earning, Workday forms 2 new PCRCs:
  • Hourly Pay - Hours (unprorated)
  • Hourly Pay - Rate
To display hours on the
Actuals
 tab of a worker's pay result, add the
General Ledger: Hours
 pay component group to any
Hours
 related calculation.
When the pay component uses
Position
 as a calculation worktag, Workday resolves the pay component separately for each valid position. To include positions the worker no longer holds, Workday recommends using a pay accumulation as the related calculation. Note: While pay component groups always filter by worktag, you can configure pay accumulations not to filter by worktag.
You can also use non-numeric related calculations in pay component calculations. You can choose from:
  • Date type related calculations that return dates.
  • Numeric, Boolean, and text type related calculations that return numeric values.
You can’t change the input value type of a related calculation once the related calculation has been used in a pay component.
For Payroll for the U.S., you can’t use non-numeric related calculations for FLSA earning amounts.
  1. Access the
    Edit Earning
     or
    Edit Deduction
     task.
  2. In the
    Related Calculations
     grid on the
    Effective Dated
     tab, add a row for each pay component related calculation. Complete the
    Related Calculations
     grid:
    Option Description
    Related Calculation
    Select a related calculation to calculate as part of the pay component. Example: Select
    Hours
     and
    Rate
     for an
    Hours * Rate
     earning calculation.
    If you select a Workday-owned calculation, ensure that it meets your requirements for proration, retro processing, and other conditions.
    If you configure proration for the related calculation, either by days worked or calendar days, and link it to a pay component with proration exceptions, the
    Pay Components Not Subject to Proration (Exception)
     field displays when you view the pay component related calculation. You can't configure this field directly, either in
    Edit Earning
     or
    Edit Deduction
    .
    (Optional) If you select a related calculation that you use to report hours, select the
    Aggregate
     check box. Workday then combines hours from pay inputs into a consolidated result line, improving pay calculation performance and enhancing pay result readability.
    Default Calculation
    Displays the default calculation defined on the
    Create Related Calculation
     task.
    When the default calculation is
    Payroll Input
    , select the
    Input Allowed?
     check box on the
    Related Calculations
     grid.
    Override Calculation
    (Optional) Override the default calculation with a different calculation or amount. Example: You can select
    Timesheet: Approved Hours for Earning
     to retrieve the value for
    Hours (unprorated)
     from Workday Time Tracking.
    If you select
    Payroll Input
    , also select the
    Input Allowed?
     check box on the
    Related Calculations
     grid.
    If you are using non-numeric data in your related calculation (Boolean, date, or text), you must enter an override calculation for a related calculation that is the same data type as the input value type of the related calculation. Note: Override and default calculations for non-numeric related calculations don't display on payroll results, but are still used to calculate pay component amounts.
  3. (Optional) Complete the
    Limit Details
     section of the
    Related Calculations
     grid:
    Option Description
    Value
    Select a calculation, balance, or other element that serves as a limit for the value of the PCRC.
    Based On
    When left blank, Workday compares the value of the PCRC against the limit value.
    You can also compare an aggregated amount, including the current PCRC, against the limit value. Select a pay accumulation or select
    Create
    Create Pay Accumulation
     from the prompt.
    Include Current Value
    Applies to limits based on pay accumulations. Select which PCRCs to process before the PCRC of the current row when evaluating a limit.
    On the row for:
    • The PCRC to take first, leave the
      Include Current Value
       field blank.
    • The PCRC to take second, select the first PCRC.
    • The PCRCs to take third, select the first and second PCRCs.
    Example: You can configure the order in which Workday evaluates a limit based on the sum of PCRCs A, B, and C. If you want Workday to resolve A first, then B, and finally C, then:
    • For the related calculation A, leave the
      Include Current Value
       field blank.
    • For the related calculation B, select
      A
       from the
      Include Current Value
       prompt.
    • For the related calculation C, select
      A
       and
      B
       from the
      Include Current Value
       prompt.
  4. (Optional) If you want to limit how a related calculation resolves for a worktag, complete the
    Limit Filter Worktags
     section of the
    Related Calculations
     grid:
    Option Description
    Default Filter Worktags
    When you assign a worktag limit to a related calculation, you can apply the limit at a worktag value level for a worktag dimension.
    Example: You create a related calculation tracking the amount paid toward the original amount requested for a 401k loan. You also add 2 payroll inputs for the 401k loan deduction specifying loan numbers 1 and 2. When you assign the 401k Loan number custom worktag dimension as a default filter worktag, the amount paid toward the loans is tracked separately by loan number.
    Condition
    Conditional Filter Worktags
    Use these fields to configure a set of worktags for the limit, different from the worktags you configured as default.
    These worktags override the default if the conditions you configure are true.
  5. Complete the
    Results
     section of the
    Related Calculations
     grid:
    Option Description
    Do Not Store / Do Not Store if Zero
    Select whether to store the value of the PCRC with each calculation. Select:
    • Do Not Store
       to improve performance when the PCRC is only used in an intermediary calculation.
    • Do Not Store if Zero
       or
      None of the above
       to store the PCRC calculated value for later use. You can then display the calculated value, report on it, or make it available to other calculations.
    Workday doesn't process retro differences that you generate for the PCRC in the target period when:
    • You select
      Do Not Store if Zero
      .
    • The pay component amount is zero.
    To process retro on the PCRC in the target period regardless of the pay component value, select
    None of the above
    .
    When you select
    Input Allowed?
    , Workday stores payroll input for the PCRC regardless of your selection.
    Display Current / Current and Balances
    Select what to display in the
    Related Values
     section of the
    View Payroll Results
     report for a worker:
    For Payroll for Canada, France, and the U.S.:
    • Display Current
      : Displays only the PCRC amount.
    • Current and Balances
      : Displays both the PCRC amount and balances (such as MTD and PTD) configured on the
      Maintain Pay Results - Balance Period Mapping
       task.
    • None of the above
      : Doesn't display the
      Related Values
       section.
    For Payroll for Australia and the UK:
    • Display Current
      : Displays only the PCRC amount.
    • Current and Balances
      : Displays both amount and balances (such as PTD and YTD) configured on the
      Maintain Pay Results - Balance Period Mapping
       task.
    • None of the above
      : Doesn't display the
      Related Values
       section.
  6. In the
    Hours for Reporting
     section of the
    Related Calculations
     grid, consider:
    Option Description
    Result
    For hours-related calculations only. Select to include the PCRC value in the pay result.
    Workday then makes the hours PCRC value available for reporting through the
    Hours Worked on Result
     report field. This report field comes from the
    Payroll Results
     data source on the
    Payroll Results
     business object.
    Workday uses the latest effective-dated pay component definition to determine the configuration for reporting hours.
    Result Line
    For hours-related calculations only. Select whether to
    Add
     or
    Subtract
     the hours PCRC value from the aggregation of all PCRC values for the pay result line.
    Workday then:
    • Makes the hours PCRC value available for reporting through the
      Result Line Hours
       report field. This report field comes from the
      Payroll Result Lines
       data source on the
      Payroll Result Line
       business object.
    • Sums all result line hours and makes the result available for reporting through the
      Hours Paid on Result
       report field. This report field comes from the
      Payroll Results
       data source on the
      Payroll Result
       business object.
    Workday uses the latest effective-dated pay component definition to determine the configuration for reporting hours.
  7. As you complete the other fields on the
    Related Calculations
     grid, consider:
    Option Description
    Override Related Calculation for Ongoing Multiple Jurisdictions
    For Payroll for the U.S.:
    Applies when defining one of these pay components:
    • A taxable earning.
    • An imputed earning.
    • A pretax deduction.
    Companies using ongoing multiple work jurisdictions can split the PCRC by percentages. Define the percentages for employees on the
    Tax Allocations
     tab of the
    Add Worker US Tax Elections
    .
    To use the
    Default Calculation
     setting from the related calculation, select
    None of the Above
     or select an option to override it.
    The
    Do Not Apply
     option is available for pay components and for individual PCRCs. Determine whether to split the entire pay component or the PCRC.
    Retro Adjustment Type
    Displays when you select
    Bring Forward Difference
     on the
    Create Related Calculation
     task.
    Indicates whether the
    Run Retro Pay Calculation
     task forwards the difference between the original value and the recalculated value to the current period. When clear, Workday uses the full amount of the recalculated pay component related calculation in the current period instead of the retro differences.
    Pay Component Related Calculation
    Displays the PCRC that results from defining the related calculation for the pay component.
You can:
  • Select pay component related calculations in pay component groups, pay accumulations, and pay balances.
  • Display pay component related calculations on payroll result reports and employee payslips.
When you run a payroll calculation, Workday calculates the pay component related calculations.