Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2023-06-23
Example: Create a Dividend Earning

Example: Create a Dividend Earning

This example illustrates 1 way to configure an earning to pay dividends or other nontaxable earnings to workers.
You're responsible for confirming that this solution meets the reporting and compliance requirements of your organization.
You want to use Workday Payroll to pay quarterly stock dividends to workers. These payments should add to the worker's net pay and display on the payslip, but shouldn’t:
  • Add to gross pay.
  • Be subject to tax withholding.
  • Affect benefits calculations.
Set up the payslip configuration and printing options.
Security:
  • Set Up: Payroll (Calculations - Payroll Specific)
     in the Core Payroll functional area.
  • Set Up: Payroll (Reporting)
     in the Core Payroll functional area.
  1. Access the
    Create Earning
     task.
  2. Enter these values in the header section:
    Option Description
    Name
    Quarterly Dividend
    Code
    DIVIDEND
    Default Payslip Name
    Dividend Payment
  3. Enter these settings on the
    Effective Dated
     tab:
    Option Description
    Effective Date
    Current date
    Worker Eligibility
    Payroll Input Exists for Pay Component
    Calculation
    Payroll Input
    Input Amount Allowed?
    Selected
    Calculation Proration
    None of the above
  4. Don't select any existing pay component groups from the
    Groups
     prompt on the
    Non-Effective Dated
     tab.
  5. Click
    OK
     and
    Done
    .
  6. Access the
    Edit Pay Accumulation
     task.
  7. In the
    Pay Accumulation
     prompt, select
    Net
    .
  8. In the
    Earnings
     prompt, select
    Quarterly Dividend
    .
  9. Click
    OK
     and
    Done
    .
  10. Access the
    Create Pay Component Group
     task.
  11. Enter these values:
    Option Description
    Name
    Nontaxable Earnings
    Pay Component Group Code
    NTX_EARN
    Pay Component Usage
    Earnings
  12. Select
    Quarterly Dividend
     from the
    Earnings
     prompt on the
    Adds to Group
     grid.
  13. Click
    OK
     and
    Done
    .
  14. Access the
    Maintain Payroll Payslip Configuration
     task.
  15. On the
    Sections
     tab, select the Nontaxable Earnings pay component group from the
    Payslip Calculation(s)
     prompt on the
    Earnings
     row.
  16. Click
    OK
     and
    Done
    .
Add payroll input for the dividend amounts.