Steps: Manage Calculated Plans for Compensation

Compensation administrators can create powerful compensation plans based on customized calculations. Calculated plans can be:

Assigned to employees like other compensation plans.

Used as part of a compensation basis.

Updated in the

Other

section in Compensation transactions and in Staffing transactions that include compensation.

Unlike other compensation plans, Workday doesn't automatically remove calculated plans with a zero value from Manage by Basis Total (MBT) employees. Workday recalculates plans with a zero value without having to reassign them.

Calculations can be very complex. Workday recommends that you engage Workday Professional Services or a Workday Consulting Partner to help you configure the calculations for Compensation.

Create 1 or more calculations in the Compensation
category using tasks such as:

Create Aggregate Calculation

Create Constant Value Calculation

Create Lookup Calculation

Security: Set Up: Payroll (Calculations – Generic)
in the Core Payroll functional area.

Example: Your US federal agency uses locality pay and you access the

Create Locality Pay Area

task to enter a percentage for each locality pay area. You then access the

Create Arithmetic Calculation

task to configure a Locality Pay Calculation. You also create a calculated plan that uses your Locality Pay Calculation. Finally you assign the calculated plan to employees or positions.

Access the

Create Calculated Plan

task.

Select how Workday calculates plan amounts:

Dynamic

: Workday recalculates plan amounts based on current values whenever a compensation event occurs or you view the plan.

Event Driven

: Workday calculates plan amounts when a compensation event occurs or when you run the Calculated Plan Assignment Updates by Position
operation type on the

Mass Operations Management

task. Workday creates an event whenever a plan amount changes.

(Optional) Enter a

Plan Type Name Override

to replace the automatically populated name.

(Optional) Select the

Exclude from Total Salary and Allowance Compensation Basis

check box.

Doing so excludes the calculated plan when Workday calculates the Total Salary and Allowance
compensation basis.

Select a

Compensation Element

to associate this plan with a payroll earning.

Select a

Calculation

, or click

Create

(Optional) Select a

Target Percent Calculation

, a

Ceiling Amount Calculation

, or both on amount-based plans.

Given a defined

Target Percent Calculation

Ceiling Amount Calculation

, Workday evaluates salary-dependent plans for MBT workers when calculating the Primary Compensation Basis (PCB).

However, Workday doesn't include calculated plans that lack a target when allocating compensation basis amounts.

You can use these fields for reporting and in Payroll or Payroll Integration.

Select 1 or more

Eligibility Rules

Security, in the Core Compensation functional area:

Set Up: Base and Plan

Add Compensation Plans: Add Calculated

Compensation Change: Calculated

Run the Calculated Plan Assignment Updates by Position
mass operation.

Create a custom report using the Positions for HCM Reporting data source.

Access the

Mass Operation Management

task. As you complete the task, consider:

Option	Description
Mass Operation Type	Calculated Plan Assignment Updates by Position .
Effective Date	The date of this event becomes effective.
As of Date	Workday evaluates the plan as it existed on this date. Example: You have a calculated plan that calculates the number of service years * 100. You want the amount to change on the first of the month for any employee with a service year change during that month. You run the operation type the first day of every month and set both the Effective Date and the As of Date to March 1. A worker with a service date of March 15 won't get a new amount because Workday evaluated the plan as it existed on March 1. To avoid this, configure an As of Date of March 31.
Input Report	Select the custom report that you created.
Run Partial Calculation	Select to perform partial calculation only for employees with calculated plan assignment changes. Workday recalculates plans with dependencies on the calculated plan. If not selected, Workday recalculates the calculated plan and adjusts the PCB.
Update Selected Calculated Plans Only	Workday updates only the selected calculated plans during calculations. Workday updates the PCB regardless if you selected Retain Basis Total on the basis.
Update Selected Calculated Plans and Dependent Plans - MBT Only	Workday updates the selected plans only if they have changes, and updates their dependent plans. However, Workday doesn't update dependent plans for non-MBT employees. Workday doesn't update dependent plans for MBT employees if the dependent plans have changes but the selected plans don't. Workday might update the PCB regardless if you selected Retain Basis Total on the basis.
Update All Compensation Plans - MBT Only	Workday recalculates all compensation plans only when 1 or more selected calculated plans have changes. Workday maintains the PCB constant, regardless if you selected Retain Basis Total on the basis.

For MBT employees, Workday updates both dynamic and event-driven plans. For non-MBT employees, Workday updates only event-driven plans. You can run this operation on a regular basis for employees, including MBT employees or those with multiple positions. You can also use this operation to calculate amounts for event-driven plans on demand.

Security:

Mass Operation Management
domain in the System functional area.

Set up segment security for mass operations.

Create a calculated plan to give each eligible employee a fixed amount for every year of service.

Access the

Create Arithmetic Calculation

Create a calculation called Seniority Pay that multiplies Length of Service by a fixed Seniority Accrual amount set up as a Constant Value.

Access the

Create Calculated Plan

task and select Seniority Pay in the

Calculation

field.