Concept: Compensation Elements and Payroll Processing
When you create an earning, the
Compensation Element
section of the Effective Dated
tab enables you to map the earning to 1 or more compensation elements so that Workday can retrieve the correct:- Amounts
- Percentages
- Rates
When the compensation element belongs to a one-time payment plan, the payroll process also:
- Costs the one-time payment according to worktag values assigned through Compensation.
- Creates a separate result line for each one-time payment the worker receives, such as a referral bonus. Payslips report the aggregate amount of the earning.
- Creates separate result lines when you map an earning to both a one-time and recurring compensation element, and the worker receives both.
- Updates the calculation status of a result toRequires Recalculationif Compensation modifies or rescinds a worker's payment request when the payment is in progress.
When the compensation element is for period activity pay, academic periods defined in Compensation control the timing of payments. You can't map the same earning to a compensation element for period activity pay or another type. During the payroll process:
- Workday creates a separate result line for each period activity payment that a worker receives. Payslips report the aggregate amount of the earning.
- If Compensation modifies or rescinds a worker's period activity pay when a payment is in progress, Workday updates the calculation status of a result toRequires Recalculation.