Concept: Inactivate Earning and Deduction Definitions

To prevent a pay component definition from processing to a result, select the

Inactive

check box on the

Edit Earning

Edit Deduction

task. Workday:

Considers the pay component to be inactive for the entire pay period, since Workday doesn’t prorate inactive and active status.

Carries pay balances and pay accumulations forward regardless of the pay component active or inactive status.

Continues to process arrears for inactivated deductions for both on-cycle and off-cycle payments. To update the arrears balance for an inactive pay component, use the

Flat Amount Limit (When No Current Deduction)

field on the

Edit Net Pay Validation/Arrears

task.

Excludes inactive earnings from payroll commitments.

An inactive pay component in the

Include Current Value

field on a pay component or pay component-related calculation:

Has no current result.

Doesn't contribute to the limit.

Retroactive Considerations

When a worker has a supported retroactive event:

Workday resolves a retroactive change to a pay component according to the pay component status as of the retro target period.

If you change a pay component status for a completed period, Workday always considers worker eligibility criteria. Therefore, regardless of the

Retro Calculation

setting, the retro pay calculation generates retro differences for that pay component and that period. Example: You inactivate a deduction for a completed period and leave the

Recalculate During Retro

check box empty on the deduction definition. When you run a retro pay calculation for that period, Workday refunds the deduction in the current period.

Retroactively changing a pay component definition causes retro differences. Changing an earning or deduction definition itself doesn’t create a supported retro event. Example: You retroactively change a union dues rate on an active deduction definition. When you initiate a supported retroactive event, those workers with that event receive the union dues update retroactively.

Current Status Field on the View Earning and View Deduction Reports

Workday displays the status of pay components as of the current day in the

Current Status

field on the

View Earning

and

View Deduction

reports.

If you create a future-dated pay component, and select the

Inactive

check box:

The

Inactive

field displays Yes
.

The

Current Status

field displays Active
until the effective date.

Status Field in Reports and Web Services

If at least 1 pay component is inactive, the

Status

field displays on these reports and web services. The Inactive
status for the pay component displays as of the current day.

Reports:

All Pay Component Related Calculations

All Earnings

All Deductions

Web Services:

Get Deductions

Put Deductions

Pay Component Names in Prompts

Workday keeps inactive pay components available to you, so you can use them for such situations as prior periods or arrears balances. To help you make an informed decision about processing an inactive pay component, Workday appends the name with the term (Inactive)
. Example: Basic Life - EE (Inactive)
.

Steps: Create Earnings

Steps: Create Deductions