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Administrator Guide
Last Updated: 2026-05-15
Steps: Create Earnings

Steps: Create Earnings

For position-based earnings, configure your Workday tenant to support multiple jobs (CAN, UK, USA). See Setup Considerations: Payroll for Multiple Jobs.
Security:
Set Up: Payroll (Calculations - Payroll Specific)
 domain in the Core Payroll functional area.
An earning is a type of pay component that enables you to pay wages when you process payroll. You can set up earnings to calculate values such as:
  • Base pay or allowance.
  • FLSA earnings (USA).
  • Gross up earnings (CAN, FRA, IRL, UK, USA).
  • Hours from Workday Time Tracking.
  • Paid and unpaid time off.
  • Tip earnings (USA).
  • Values entered through payroll input.
  1. Access the
    Create Earning
     task.
  2. Enter the identification information:
    Option Description
    Name
    Enter how the earning displays on payroll results.
    Code
    To use with other Workday applications, enter a code of up to 20 characters.
    Example: You're configuring integrations in HCM for importing payroll data.
    Default Payslip Name
    Enter the name of the earning to display on payslip configurations. You can override this field on
    Maintain Payroll Payslip Configuration
    .
    For Payroll for France:
    When you use the
    Payslip to Print - FRA
     standard report to create a payslip layout, you can display aggregated pay components on the payslip.
    To configure an aggregated line, define a
    Default Payslip Name
     that:
    • Is identical for all pay components to be aggregated.
    • Contains characters between square brackets.
    On the payslip, Workday displays the text between square brackets as the payslip name for aggregated pay components.
    Country
    Specify the
    Country
     where you can use the earning.
    If you leave this field blank:
    • You can use the earning in any country.
    • Workday uses the currency of the pay group for calculations.
    • Workday displays all options for the countries included in your tenant setup.
    When you configure earnings for multiple countries, verify that any FLSA-specific earnings are configured for U.S. Payroll only. Specifying other countries for FLSA earnings may cause errors when you process payroll.
  3. Access the
    Effective Dated
     tab.
  4. Enter an
    Effective Date
    .
  5. In the
    Criteria
     section, define pay component eligibility criteria to determine when Workday calculates the earning. See Concept: Pay Component Eligibility.
    Option Description
    Run Category Eligibility
    When you use more than 1 run category and the pay component applies to only some of them, select those categories.
    When the
    Country
     field on the pay component is:
    • Empty, select any run category.
    • Populated, select run categories associated with no country, or with at least 1 of the listed countries.
    Pay Group Detail Eligibility
    The pay component only applies to workers in that pay group.
    Worker Eligibility
    You can see all available calculations on these reports:
    • All Instance Set Comparison Calculations
    • All Instance Value Calculations
    • All Logic Calculations
    • All Value Comparison Calculations
    To create your own worker eligibility rules, select
    Create
     from the
    Worker Eligibility
     prompt and 1 of these calculations:
    • Create Instance Set Comparison Calculation
    • Create Logic Calculation
    • Create Value Comparison Calculation
    When you add the criteria in 1 row, workers must meet all conditions of that row. When you add criteria in multiple rows, workers must meet all conditions of at least 1 row.
    Scheduling
    You can control when a pay component resolves, such as:
    • On the first pay period of the month by selecting
      Scheduling: First Period of Month (based on Payment Date)
      .
    • When you enter payroll input by selecting
      Pay Input or Approved Time Entry Exists for Sub Period
      .
  6. In the
    Calculation Details
     section, define the calculation that returns the final earning. You can create payroll calculations that return the final earning values on administrative payroll results and worker payslips. See Concept: Pay Component Related Calculations.
    Option Description
    Calculation
    Calculates the earning or deduction amount.
    Workday provides many common payroll calculations, such as
    Hours (Unprorated) * Rate
    . You can filter your search for a Workday-owned calculation by
    Category
    ,
    Type
    , and
    Country
    .
    To build your own calculation, select
    Create
    . Workday provides tasks to build a variety of calculations, such as an arithmetic calculation or lookup table or lookup value calculation.
    Input Amount Allowed?
    Enables you to enter the calculation amount through payroll input when the amount doesn't come from compensation, a benefit plan, or time tracking.
    Workday recommends selecting either:
    • Input Amount Allowed?
       for the calculated amount.
    • Input Allowed?
       for each applicable pay component related calculation (PCRC).
    Workday doesn't recommend selecting both.
    When you leave this check box clear, Workday prevents you from adding payroll input for both:
    • The earning amount.
    • PCRC amounts.
    When a Workday-owned pay component isn't enabled, you can still add payroll input for any enabled PCRCs.
    Workday ignores this check box when loading data for web services and integrations.
    You can override this setting by selecting
    Special Entry
     when adding payroll input.
    Override Frequency
    Enables you to select the frequency of the period schedule that’s assigned to the pay group detail.
  7. Consider these optional Calculation Details features, which require additional setup.
    Option Description
    Calculation Proration
    Determines how to prorate the earning when a midperiod event results in multiple subperiods.
    For Payroll for Australia, if none of the proration options apply, but you still need to prorate, the proration calculation can be set to
    None
    . You can determine the proration behavior with related calculations.
    Gross-Up Calculation
    For Payroll for Canada, France, Ireland, the UK, and the U.S.
    Enables you to calculate a gross amount based on an input net amount.
    Retro Calculation
    Enables you to configure whether Workday recalculates the earning during retroactive calculations. By default, Workday recalculates earnings during retro payroll calculations.
    United States - FLSA/Flat Sum Bonus
    For Payroll for the U.S.
    Contains options that enable you to:
    • Calculate results by FLSA period on a specific results tab.
    • Manage coverage dates that span multiple FLSA periods.
    • Indicate that the earning is a flat sum bonus.
    United States - Multiple Work Jurisdictions
    For Payroll for the U.S.
    Determines whether to split the earning calculation based on tax allocation percentages defined for different work jurisdictions.
    Calculation Worktag
    Enables you to tag the earning or deduction with supplemental information such as company, position, location, or loan number. You can then reference the worktag to:
    • Guide the calculation of pay components.
    • Associate pay component values for aggregation or accounting.
    • Limit values displayed for:
      • Accumulation.
      • Reporting.
    When you configure an earning or deduction with a calculation worktag, Workday requires you to enter the worktag also on payroll input.
    For Payroll for Australia, Canada, and the U.S., to create a position-based earning or deduction for multiple jobs, or for U.S. international assignments, select the
    Position
     worktag.
    You can’t change the calculation worktag after you:
    • Include the earning in a payroll or retro calculation.
    • Add payroll input for the earning.
    Select the
    Include Input
     check box to resolve the earning or deduction whenever Workday processes payroll input for the associated worktag.
    Example: You can add a
    Shift
     worktag to these earnings to track shift hours:
    • Hourly pay by shift: An earning that tracks shift work entered as payroll input from a third-party time and attendance system.
    • Pay differential: An earning to calculate the pay differential based on the shift hours.
    You can then select the
    Include Input
     check box on the pay differential earning. This ensures that Workday resolves the pay differential earning when you enter pay input for the hourly pay by shift earning.
    When you configure an earning with a calculation worktag, Workday requires you to enter the worktag on payroll input.
    Holiday Pay
    For Payroll for the UK.
    Enables you to split an earning into weekly periods for statutory holiday pay calculations. You can use this for:
    • Earnings that you include when calculating statutory holiday pay.
    • Earnings that shadow source earnings used to calculate holiday pay.
    Include Input
    Select this check box to resolve the earning whenever Workday processes payroll input for the associated worktag.
    Example: You can add a
    Shift
     worktag to these earnings to track shift hours:
    • Hourly pay by shift: An earning that tracks shift work entered as payroll input from a third-party time and attendance system.
    • Pay differential: An earning to calculate the pay differential based on the shift hours.
    You can then select the
    Include Input
     check box on the pay differential earning. This ensures that Workday resolves the pay differential earning when you enter pay input for the hourly pay by shift earning.
  8. In the
    Related Calculations
     section, set up pay component related calculations (PCRCs). Add a row for each PCRC. See Concept: Pay Component Related Calculations.
    Option Description
    Related Calculation
    Select a related calculation to calculate as part of the pay component. Example: Select
    Hours (Unprorated)
     and
    Rate
     for an
    Hours (Unprorated) * Rate
     earning calculation.
    If you select a Workday-owned calculation, ensure that it meets your requirements for proration, retro processing, and other conditions.
    If you configure proration for the related calculation, either by days worked or calendar days, and link it to a pay component with proration exceptions, the
    Pay Components Not Subject to Proration (Exception)
     field displays when you view the pay component related calculation. You can't configure this field directly in
    Edit Earning
    .
    (Optional) If you select a related calculation that you use to report hours, select the
    Aggregate
     check box. Workday then combines hours from pay inputs into a consolidated result line, improving pay calculation performance and enhancing pay result readability.
    Default Calculation
    Displays the default calculation defined on the
    Create Related Calculation
     task.
    When the default calculation is
    Payroll Input
    , select the
    Input Allowed?
     check box on the
    Related Calculations
     grid.
    Override Calculation
    (Optional) Override the default calculation with a different calculation or amount. Example: You can select
    Timesheet: Approved Hours for Earning
     to retrieve the value for
    Hours (unprorated)
     from Workday Time Tracking.
    If you select
    Payroll Input
    , also select the
    Input Allowed?
     check box on the
    Related Calculations
     grid.
    If you are using non-numeric data in your related calculation (Boolean, date, or text), you must enter an override calculation for a related calculation that is the same data type as the input value type of the related calculation.
    Override and default calculations for non-numeric related calculations don't display on payroll results, but are still used to calculate pay component amounts.
    Value
    Optional.
    Select a calculation, balance, or other element that serves as a limit for the value of the PCRC.
    Based On
    Optional.
    When left blank, Workday compares the value of the PCRC against the limit value.
    You can also compare an aggregated amount, including the current PCRC, against the limit value. Select a pay accumulation or select
    Create Pay Accumulation
     from the prompt.
    Include Current Value
    Optional.
    Applies to limits based on pay accumulations. Select which PCRCs to process before the PCRC of the current row when evaluating a limit.
    On the row for:
    • The PCRC to take first, leave the
      Include Current Value
       field blank.
    • The PCRC to take second, select the first PCRC.
    • The PCRCs to take third, select the first and second PCRCs.
    Example: You can configure the order in which Workday evaluates a limit based on the sum of PCRCs A, B, and C. If you want Workday to resolve A first, then B, and finally C, then:
    • For the related calculation A, leave the
      Include Current Value
       field blank.
    • For the related calculation B, select A from the
      Include Current Value
       prompt.
    • For the related calculation C, select A and B from the
      Include Current Value
       prompt.
    Default Filter Worktags
    Optional.
    If you want to limit how a related calculation resolves for a worktag, When you assign a worktag limit to a related calculation, you can apply the limit at a worktag value level for a worktag dimension.
    Example: You create a related calculation tracking the amount paid toward the original amount requested for a 401k loan. You also add 2 payroll inputs for the 401k loan deduction specifying loan numbers 1 and 2. When you assign the 401k Loan number custom worktag dimension as a default filter worktag, the amount paid toward the loans is tracked separately by loan number.
    Condition
    Optional.
    Use these fields to configure a set of worktags for the limit, different from the worktags you configured as default.
    Conditional Filter Worktags
    Optional.
    These worktags override the default if the conditions you configure are true.
    Do Not Store / Do Not Store if Zero
    Select whether to store the value of the PCRC with each calculation. Select:
    • Do Not Store
       to improve performance when the PCRC is only used in an intermediary calculation.
    • Do Not Store if Zero
       or
      None of the above
       to store the PCRC calculated value for later use. You can then display the calculated value, report on it, or make it available to other calculations.
    Workday doesn't process retro differences that you generate for the PCRC in the target period when:
    • You select
      Do Not Store if Zero
      .
    • The pay component amount is zero.
    To process retro on the PCRC in the target period regardless of the pay component value, select
    None of the above
    .
    When you select
    Input Allowed?
    , Workday stores payroll input for the PCRC regardless of your selection.
    Display Current / Current and Balances
    Select what to display in the
    Related Values
     section of the
    View Payroll Results
     report for a worker:
    For Payroll for Canada, France, and the U.S.:
    • Display Current
      : Displays only the PCRC amount.
    • Current and Balances
      : Displays both the PCRC amount and balances (such as MTD and PTD) configured on the
      Maintain Pay Results - Balance Period Mapping
       task.
    • None of the above
      : Doesn't display the
      Related Values
       section.
    For Payroll for Australia and the UK:
    • Display Current
      : Displays only the PCRC amount.
    • Current and Balances
      : Displays both amount and balances (such as PTD and YTD) configured on the
      Maintain Pay Results - Balance Period Mapping
       task.
    • None of the above
      : Doesn't display the
      Related Values
       section.
    Result
    For hours-related calculations only. Select to include the PCRC value in the pay result.
    Workday then makes the hours PCRC value available for reporting through the
    Hours Worked on Result
     report field. This report field comes from the
    Payroll Results
     data source on the
    Payroll Results
     business object.
    Workday uses the latest effective-dated pay component definition to determine the configuration for reporting hours.
    Result Line
    For hours-related calculations only. Select whether to
    Add
     or
    Subtract
     the hours PCRC value from the aggregation of all PCRC values for the pay result line.
    Workday then:
    • Makes the hours PCRC value available for reporting through the
      Result Line Hours
       report field. This report field comes from the
      Payroll Result Lines
       data source on the
      Payroll Result Line
       business object.
    • Sums all result line hours and makes the result available for reporting through the
      Hours Paid on Result
       report field. This report field comes from the
      Payroll Results
       data source on the
      Payroll Result
       business object.
    Workday uses the latest effective-dated pay component definition to determine the configuration for reporting hours.
    Override Related Calculation for Ongoing Multiple Jurisdictions
    For Payroll for the U.S.:
    Applies when defining one of these pay components:
    • A taxable earning.
    • An imputed earning.
    • A pretax deduction.
    Companies using ongoing multiple work jurisdictions can split the PCRC by percentages. Define the percentages for employees on the
    Tax Allocations
     tab of the
    Add Worker US Tax Elections
    .
    To use the
    Default Calculation
     setting from the related calculation, select
    None of the Above
     or select an option to override it.
    The
    Do Not Apply
     option is available for pay components and for individual PCRCs. Determine whether to split the entire pay component or the PCRC.
    Retro Adjustment Type
    Displays when you select
    Bring Forward Difference
     on the
    Create Related Calculation
     task.
    Indicates whether the
    Run Retro Pay Calculation
     task forwards the difference between the original value and the recalculated value to the current period. When clear, Workday uses the full amount of the recalculated pay component related calculation in the current period instead of the retro differences.
    Pay Component Related Calculation
    Displays the PCRC that results from defining the related calculation for the pay component.
  9. (Optional) In the
    Limits
     section, define limits for the earning calculation. See Concept: Earning and Deduction Limits.
    Option Description
    Value
    The limit that applies to the pay component.
    Balance Period
    The period to which the limit applies. Example: A month-to-date (MTD) or year-to-date (YTD) balance period.
    Based On
    To limit only the current pay component itself, leave this field blank. Workday automatically uses the value of the current pay component.
    To limit the combined value of multiple pay components, including the current one, select the pay accumulation that sums them, or select
    Create Pay Accumulation
     from the prompt.
    You can't base a limit on a pay balance. Use the
    Balance Period
     field to identify the period to which the limit applies.
    Include Current Value
    Use this field only when the limit applies to a pay accumulation. It tells Workday the order in which to resolve the pay components as the pay accumulation nears its limit. Workday considers the values of the pay components only on the current pay result.
    You can list multiple pay components in any order. Workday examines all of the pay components in the pay accumulation, and processes the one where
    Include Current Value
     is empty first. It then examines the remaining pay components and determines which one has no pay components left to process before it, and processes that one, and so forth. To control the order to take the pay components when the accumulation reaches the limit:
    • On the pay component to take first, leave the
      Include Current Value
       field blank.
    • On the pay component to take second, select the first pay component.
    • On the pay component to take third, select the first and second pay components.
    Example: The limit is based on a pay accumulation that sums the year-to-date values of pay components A and B. You want Workday to resolve A first:
    • On A, don't select a value.
    • On B, select A.
    If the accumulation includes a third pay component, and you want Workday to resolve A and B first:
    • On A, don't select a value.
    • On B, select A.
    • On C, select A and B.
    Workday processes:
    1. A first, because it's empty.
    2. B second, after processing A.
    3. C third, after processing A and B
  10. (Optional) Base earning calculations on compensation elements or absence totals. See Concept: Mapping Earnings.
    Option Description
    Events Causing Pay Component Proration
    For earnings with a defined proration method and a proration calculation.
    Select
    Compensation Change
     to prorate the earning amount in response to compensation changes for a worker.
    Compensation Element
    Select 1 or more compensation elements.
    For Payroll for the U.S., set up all earnings attached to a specific compensation element the same way for FLSA. Make sure that you don't use an FLSA-specific and a non-FLSA specific earning for the same compensation element. Example: 2 bonus earnings have the compensation element Spot Bonus, but 1 is FLSA-specific and the other is non-FLSA specific. This configuration causes Workday to process non-FLSA earnings by FLSA periods, even though this earning isn’t subject to FLSA wages.
    Time Calculation Tag
    In the
    Time Calculation Tag
     field, specify which hours to retrieve.
    Examples:
    • For Payroll for Australia, to have the
      Ordinary Hourly Pay
       earning pay time blocks tagged with the
      Regular
       time calculation tag, select
      Regular
      .
    • For Payroll for Canada, the UK, and the U.S., to have the
      Hourly Pay
       earning pay time blocks tagged with the
      Regular
       time calculation tag, select
      Regular
      .
    • For Payroll for France, to have the
      Complementary hours
       earning pay time blocks tagged with the
      Regular
       time calculation tag, select
      Regular
      .
  11. On the
    Non-Effective Dated
     tab, consider these optional features.
    Option Description
    Groups (for earnings)
    Add earnings to a group of pay component groups, which you can then use in run categories or other configurations. Example: Define which pay components add to the gross pay.
    For Payroll for the UK, for any benefit in kind earnings that must be excluded when calculating the UK 50% regulatory income tax limit, add the
    GBR PBIK Earnings Excluded From 50% Regulatory Limit PCG
    .
    For Payroll for Canada, you can only configure 1 Canada Revenue Agency income tax pay component group for an earning.
    For Payroll for Canada, to ensure that Workday calculates Health Tax Contributions for Quebec workers correctly when pension amounts are present, configure applicable RPP deductions with the pay component group
    Other Quebec Deductions (F2) [CAN]
    .
    Benefits
    Enables you to link an earning to a benefit plan.
    You can then set up enrollment event rules in HCM to specify when to begin or end payroll deductions based on the benefit plan.
    Costing
    Enables you to specify how to allocate all instances of an earning or deduction for all employees across:
    • Cost centers.
    • Projects.
    • Grants.
    • Other organization types and locations.
    Canada - Record of Employment (ROE)
    For Payroll for Canada.
    Enables you to identify how to report an earning or deduction for ROE reporting.
    You can use these fields to identify the allocation reporting period for ROE reporting.
    • Allocation Reporting Period: To include deduction amounts for all deductions that you configure with an
      EI Taxable
       pay component group, such as
      EI Taxable [CAN]
      , select
      Period Earned
       or
      Period Paid
      .
    • Allocation Reporting Period Retro: Workday automatically populates the reporting period with the same value as the
      Allocation Reporting Period
      .
You successfully created an earning that you can use in payroll processing upon the effective date.
If you want your earning to post to a resulting ledger account, then you need to update your Payroll Earning account posting rule. To update this rule:
  • Access the
    View Account Posting Rule Set
     report.
  • Select the
    Payroll Earning
     rule.
  • Click
    Edit Posting Rule
    .
  • On the
    Edit Account Posting Rule
     page, you can:
    • Edit the default ledger account.
    • Add the
      Pay Component
       that contains your earning to a posting rule.
    • Test the edited posting rule.