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Administrator Guide
Last Updated: 2023-06-23
FAQ: How is Total Eligible Earnings calculated?

FAQ: How is Total Eligible Earnings calculated?

To determine the
Total Eligible Earnings
 when you configure pools for a compensation review process, Workday:
  1. Identifies the plans selected when you initiated the process.
  2. Identifies which compensation basis to use to calculate the target award amount: the Primary Compensation Basis (PCB) or
    Total Base Pay
    . Workday determines:
    1. If the merit plans that have the
      Manage by Basis
       check box selected.
    2. The rankings of each compensation basis as configured on the
      Maintain Compensation Basis
       task.
    3. The highest ranking PCB for an employee, based on the eligibility rules associated with the compensation basis.
      Example: Brian qualifies for both CompBasis2 and CompBasis3 based on the associated eligibility rules. Because CompBasis2 is ranked higher than CompBasis3 on the
      Maintain Compensation Basis
       task, the primary compensation basis for Brian is CompBasis2.
    4. If the compensation package for the employee includes the PCB.
    If Workday can't determine a PCB for the employee, it uses
    Total Base Pay
    .
  3. Calculates the individual target award amounts that contribute to
    Total Eligible Earnings
    .
    For percent-based plans, these factors can affect the calculation:
    Plan
    Apply FTE
    Matrix
    Proration
    Scorecard
    Salary
    Yes
    No
    No
    No
    Hourly
    No
    No
    No
    No
    Allowance
    Yes
    No
    No
    No
    Merit
    No
    Yes
    Yes
    No
    Bonus
    No
    Yes
    Yes
    Yes
    One-Time Payment
    No
    No
    No
    No
    Commission
    No
    No
    No
    No
    Stock
    No
    Yes
    No
    No
  4. Adds the individual target award amounts to define the total compensation for the compensation review process.