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Administrator Guide
Last Updated: 2024-09-20
Create Pay Component Groups

Create Pay Component Groups

To see which pay component groups Workday delivers, review the
View Pay Component Group
 report.
Security:
Set Up: Payroll (Calculations - Payroll Specific)
 domain in Core Payroll functional area.
A pay component group is a set of earnings, deductions, and pay component-related calculations that return an aggregate value for the period or subperiod.
Workday uses pay component groups for calculations and reporting. It delivers them for deductions, such as for taxes and withholding orders, and others for earnings, such as all earnings that add to gross pay and employer-paid benefits. You can also create your own pay component groups.
Pay component groups don't represent values over multiple periods or support subtraction. To calculate one or more pay component balances over time, use a pay balance instead. To perform subtraction, use a pay accumulation or arithmetic calculation instead.
Pay component groups always filter by worktag. However, you can configure pay accumulations to not filter by worktags.
  1. Access the
    Create Pay Component Group
     task.
  2. Complete the task:
    Option Description
    Pay Component Group Code
    Enter a unique code to use when migrating pay component groups with object transporter.
    Pay Component Usage
    Select the types of pay components to include in the group.
    Target Single Subperiod for a Prorated Pay Component
    When a primary pay component references another pay component (Example: Base pay references holiday pay), you must select the
    Target Single Subperiod for a Prorated Pay Component
     check box on the
    Create Pay Component Group
     or the
    Create Pay Accumulation
     task. Selecting this check box sets the referenced pay component (Example: Holiday pay) to target a single subperiod of the prorated primary pay component.
    To prevent any negative impacts on retro calculations, you must create a new:
    • Pay component group and enable
      Target Single Subperiod for a Prorated Pay Component
      .
    • Effective dated snapshot for your primary pay component referencing the cloned pay component group.
    Adds to Group
    Select the pay components to include.
    The
    Exceptions for Taxes
     and
    Exceptions for Withholding Orders
     tabs don’t apply to Payroll for Australia and France.
  3. (Optional) For Payroll for Canada, the UK, and the U.S., on the
    Exceptions for Taxes
     tab, identify any earnings or deductions that are subject to a different tax treatment in specific tax jurisdictions.
    Examples:
    • In Canada, the pay in lieu of notice earning is subject to workers compensation in all provinces except British Columbia, Quebec, Saskatchewan, and Yukon. To create this rule for the
      Workers Compensation Exempt
       pay component group, select the 4 provinces in the
      Payroll Tax Authority
       field. Then select
      Pay in Lieu of Notice [CAN]
       in the
      Include Pay Component(s)
       field.
    • In the United States, all states except Pennsylvania reduce state taxable income by the amount of 401(k) deductions. To create this rule for the
      State Withholding Taxable Reduction [USA]
       pay component group, select
      Pennsylvania
       as the
      Payroll Tax Authority
       and 401(k) deductions in the
      Exclude Pay Component(s)
       field.
  4. (Optional) For Payroll for Canada, the UK, and the U.S., on the
    Exceptions for Withholding Orders
     tab, specify exceptions to the disposable earnings calculation for withholding orders.
    Example: In the United States, all states except Louisiana reduce disposable earnings for withholding orders by medical expenses including dental and vision. To create this rule for the
    Withholding Order (All): Medical Insurance [USA]
     pay component group, select:
    Option
    Value
    Tax Authority
    Louisiana
    Withholding Order Type
    Leave this field blank and Workday applies the exception to all types for this state where the type doesn’t follow federal withholding.
    If you select specific types, Workday applies the exception to only the types selected.
    Exclude Pay Component(s)
    Dental
    and
    Vision