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Administrator Guide
Last Updated: 2024-03-08
Steps: Create Earnings

Steps: Create Earnings

  • For Payroll for Canada, the UK, and the U.S., for position-based earnings, configure your Workday tenant to support multiple jobs.
  • Security:
    Set Up: Payroll (Calculations - Payroll Specific)
     domain in the Core Payroll functional area.
You can set up earnings to calculate values such as:
  • 401(k) loan earning (USA).
  • Base pay or allowance.
  • Benefits such as employer contributions to health care or insurance.
  • FLSA earnings (USA).
  • Gross up earnings (CAN, FRA, UK, USA).
  • Hours from Workday Time Tracking.
  • Paid and unpaid time off.
  • Tip earnings (USA).
  • Values entered through payroll input.
  1. Access the
    Create Earning
     task.
  2. Enter the earning identification information:
    Option Description
    Name
    Enter how the earning displays on payroll results.
    Code
    To use with other Workday applications, enter a code of up to 20 characters. Example: You're configuring integrations in HCM for importing payroll data.
    Default Payslip Name
    Enter the name of the earning to display on payslip configurations. You can override this field on
    Maintain Payroll Payslip Configuration
    .
    For Payroll for France:
    When you use the
    Payslip to Print - FRA
     standard report to create a payslip layout, you can display aggregated pay components on the payslip.
    To configure an aggregated line, define a
    Default Payslip Name
     that:
    • Is identical for all pay components to be aggregated.
    • Contains characters between square brackets.
    On the payslip, Workday displays the text between square brackets as the payslip name for aggregated pay components.
  3. Specify the
    Country
     that you can use the earning for.
    When you leave this field blank:
    • You can use the earning in any country.
    • Workday uses the currency of the pay group for calculations.
    • Workday displays all options for the countries included in your tenant setup.
  4. Define eligibility criteria to determine when Workday calculates the earning. Example: Restrict the earning to specific workers or run categories.
  5. Define the calculation that returns the final earning values.
  6. On the
    Effective Dated
     tab, consider these optional features, which require additional setup.
    Option Description
    Calculation Proration
    Determines how to prorate the earning when a midperiod event results in multiple subperiods.
    For Payroll for Australia, if none of the proration options apply, but you still need to prorate, the proration calculation can be set to
    None
    . You can determine the proration behavior with related calculations.
    Gross-Up Calculation
    For Payroll for Canada, France, the UK, and the U.S.
    Enables you to calculate a gross amount based on an input net amount.
    Retro Calculation
    Enables you to configure whether Workday recalculates the earning during retroactive calculations. By default, Workday recalculates earnings during retro payroll calculations.
    FLSA/Flat Sum Bonus
    For Payroll for the U.S.
    Contains options that enable you to:
    • Calculate results by FLSA period on a specific results tab.
    • Manage coverage dates that span multiple FLSA periods.
    • Indicate that the earning is a flat sum bonus.
    Multiple Work Jurisdictions
    For Payroll for the U.S.
    Determines whether to split the earning calculation based on tax allocation percentages defined for different work jurisdictions.
    Calculation Worktag
    Enables you to tag the earning with supplemental information such as company, position, location, or loan number. You can then reference the worktag to:
    • Guide the calculation of pay components.
    • Associate pay component values for aggregation or accounting.
    • Limit values displayed for accumulation.
    • Limit values displayed for reporting.
    Holiday Pay
    For Payroll for the UK.
    Enables you to split an earning into weekly periods for statutory holiday pay calculations. You can use this for:
    • Earnings that you include when calculating statutory holiday pay.
    • Earnings that shadow source earnings used to calculate holiday pay.
  7. (Optional) In the
    Calculation Worktag
     section, add worktags for supplemental information such as company, position, or location. As you complete the section, consider:
    Option Description
    Calculation Worktag
    When you configure an earning with a calculation worktag, Workday requires you to enter the worktag also on payroll input.
    For Payroll for Canada and the U.S., to create a position-based earning or deduction for multiple jobs, or for U.S. international assignments, select the
    Position
     worktag.
    You can’t change the calculation worktag after you:
    • Include the earning or deduction in a payroll or retro calculation.
    • Add payroll input for the earning or deduction.
    Include Input
    Select this check box to resolve the earning whenever Workday processes payroll input for the associated worktag.
    Example: You can add a Shift worktag to these earnings to track shift hours:
    • Hourly pay by shift: An earning that tracks shift work entered as payroll input from a third-party time and attendance system.
    • Pay differential: An earning to calculate the pay differential based on the shift hours.
      You can then select the
      Include Input
       check box on the pay differential earning. This ensures that Workday resolves the pay differential earning when you enter pay input for the hourly pay by shift earning.
  8. Configure Workday to automatically calculate related calculations as part of an earning or deduction.
  9. Define limits for the earning calculation.
  11. Add earnings to a group of pay component groups, which you can then use in run categories or other configurations. Example: Define which pay components add to the gross pay.
  12. On the
    Non-Effective Dated
     tab, consider these optional features.
    Option Description
    Benefits
    Enables you to link an earning to a benefit plan.
    You can then set up enrollment event rules in HCM to specify when to begin or end payroll deductions based on the benefit plan.
    Costing
    Enables you to specify how to allocate all instances of an earning for all employees across:
    • Cost centers.
    • Projects.
    • Grants.
    • Other organization types and locations.
    ROE
    For Payroll for Canada.
    Enables you to identify how to report an earning for ROE reporting.
The earning is available for use in payroll processing upon the effective date.
When you modify a pay component after you've processed it in a retro pay calculation, either:
  • Move the
    No Retro Processing Prior To
     date after the date of your edit.
  • Create a new effective-dated snapshot for the earning.