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Administrator Guide
Last Updated: 2025-03-14
Concept: Position-Based Earnings and Deductions

Concept: Position-Based Earnings and Deductions

To make the
Position
 worktag type available on earnings and deductions, access the
Edit Tenant Setup – HCM
 task. From the
Position Setup Options
 prompt, select
Multiple Jobs
.
For Payroll for the U.S., use this setting for both multiple jobs and international assignments. You can pay a worker from a non-Workday payroll system for only 1 international assignment at a time.
  • When you set up an earning or deduction, select
    Position
     for the
    Calculation Worktag
    . Workday calculates the earning or deduction separately for each position processed.
    Examples of position-based earnings and deductions include base pay and union dues. Use only position-based earnings and deductions for international assignments.
  • Select
    Position
     for the
    Calculation Worktag
     on all pay components that are referred to by other position-based pay components.
    This configuration ensures that all calculations use values for the correct position. Example: A position-based
    Overtime Earnings
     pay component refers to a
    Sick Pay
     pay component. Adding the position worktag to Sick Pay ensures that Workday uses the correct rate of pay when calculating sick pay.
  • If you don't select the
    Position
     worktag, Workday considers the earning or deduction worker-based. Workday resolves worker-based earnings once for each gross-to-net amount, for each pay group, unless you add worker eligibility criteria.
    For worker-based earnings or deductions in Payroll for Canada and the U.S., the worker's payroll processing position determines eligibility, unless you define rules to look across jobs. If a deduction is based on gross pay (Example: 10% of gross pay), Workday sums the earnings from all positions in the same company for the gross pay.
    For worker-based earnings or deductions in Payroll for France and the UK, the worker's primary position determines eligibility, unless you define rules to look across jobs. If a deduction is based on gross pay (Example: 10% of gross pay), Workday sums the earnings from all positions in the same company for the gross pay.
Once a payroll result or payroll input exists for the earning or deduction, you can't add or remove the
Position
 worktag.