Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2026-05-15
Steps: Set Up Workday Payroll for Buy Time Off

Steps: Set Up Workday Payroll for Buy Time Off

Security:
Set Up: Payroll (Calculations - Payroll Specific)
 domain in the Core Payroll functional area.
You can create either a memo earning to help convey the pay rate to a deduction or a negative earning to reduce gross wages without creating a deduction. Worker eligibility isn't needed on both the earning and deduction. Workday uses the Pay Component Group (PCG) for the pay component related calculations (PCRCs) to determine the workers who bought time off for the period schedule used in the earning and deduction. Workday doesn't recommend setting the pay component for proration on the earning and deduction, as this may cause calculation issues. The rate of pay will be determined at the end of the period, and mid-period compensation changes will not be taken into account.
  1. Access the
    Create Earning
     task.
  2. On the
    Effective Dated
     tab, consider:
    Option
    Description
    Calculation Details
    From the
    Calculation
     prompt, select a base minimum calculation. For a:
    • Memo earning, select
      Rate
      .
    • Negative earning, select
      Hours (unprorated) * Rate * -1.00
      .
    You can add any calculation that you need. For example: If you allow workers to buy time off at 80% of their pay rate, you would create an arithmetic calculation for
    Rate * 0.8
    .
    If needed, ensure you have an appropriate
    Override Frequency
     on the calculation. For example:
    Hourly
     or
    Daily
    .
    Related Calculations
     grid
    Consider these PCRCs, ensuring you have the correct PCGs for the PCRCs:
    • Rate: Both the memo earning and negative earning need a rate calculation. Select only 1 PCG in the
      Groups
       column based on how you calculate the rate and how the time off was bought, either
      Pay Rate for Time Off Bought in Hours
       or
      Pay Rate for Time Off Bought in Days
      . From the
      Override Calculation
       prompt, select
      Compensation: Compensation Element Value (using PC Freq Override)
      .
    • Hours (unprorated): An hours PCRC is only needed if you use a negative earning. Select
      Buy Time Off in Hours
       or
      Buy Time Off in Days
       in the
      Groups
       column and
      Quantity of Bought Time Off to Pay Off in the Current Pay Period
       for the
      Override Calculation
      .
    Compensation Element
    Add the compensation element that considers the buy back rate.
    Input Amount Allowed?
    You can't use manual pay inputs in Workday Payroll. Clear the
    Input Amount Allowed?
     check box in the:
    • Calculation Details
       section
    • Related Calculations
       grid
  3. On the
    Non-Effective Dated
     tab, in the
    Groups
     field, select the appropriate PCG.
  4. Access the
    Create Deduction
     task if you created a memo earning in Step 1.
  5. On the
    Effective Dated
     tab, consider:
    Option
    Description
    Calculation Details
    From the
    Calculation
     prompt, select
    Hours (unprorated) * Rate
    .
    Related Calculations
     grid
    Consider these PCRCs, ensuring you have the correct PCGs for the PCRCs:
    • Rate: Select
      Select Earning - Rate
      .
      Note that
      Earning
       is the PCRC on the earning that you configured in Step 1. For example: If the earning in Step 1 is called
      Buy Time Off Memo
      , select
      Buy Time Off Memo - Rate
      .
    • Hours (unprorated): Select
      Buy Time Off in Hours
       in the
      Groups
       column and
      Quantity of Bought Time Off to Pay Off in the Current Pay Period
       for the
      Override Calculation
      .
    Input Amount Allowed?
    You can't use manual pay inputs in Workday Payroll. Clear the
    Input Amount Allowed?
     check box in the:
    • Calculation Details
       section
    • Related Calculations
       grid
  6. On the
    Non-Effective Dated
     tab, in the
    Groups
     field, select the appropriate PCG.
The earning or deduction is available for use in payroll processing upon the effective date.