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Administrator Guide
Last Updated: 2026-04-03
Set Up Gross-Up Earnings

Set Up Gross-Up Earnings

  • If the source of your earning is a one-time payment plan, set up the plan.
  • Security:
    Set Up: Payroll (Calculations - Payroll Specific)
     domain in the Core Payroll functional area.
This topic provides instructions for setting up gross-up calculations for these payroll countries:
  • Canada
  • France
  • Ireland
  • The UK
  • The U.S.
You can configure an earning to calculate a gross amount based on an input net amount.
You can use gross-up earnings to offset employee liability for:
  • A company-specific percentage (USA).
  • All taxes (USA).
  • Specific combinations of Federal, State, OASDI, and Medicare (USA).
  • PAYE taxes (IRL, UK).
  • National Insurance contributions (UK).
  • Both PAYE and National Insurance contributions (UK).
  • Pay Related Social Insurance (PRSI) employee and employer contributions (IRL).
  • Universal Social Charge (USC) contributions (IRL).
  • PAYE, PRSI, and USC contributions (IRL).
For Payroll for the U.S., you can only gross up supplemental earnings.
For Payroll for the UK, Workday doesn't include a worker's student loan, postgraduate loan, or court orders in gross up calculations, which can result in a reduction of the final amount paid to the worker.
For Payroll for France, you can use gross-up earnings to offset employee liability for contributions and taxes in these pay component groups:
  • FRA Statutory Taxes EE - Deductible from Tax [FRA]
  • FRA Statutory Taxes EE - Submitted to Tax [FRA]
  • FRA Statutory Contingency Contributions ER
  • FRA Adds to Gross-Up Calculation [FRA]
You can't gross up an earning to cover voluntary or nontax deductions.
  1. Access the
    Create Earning
     task.
  2. As you complete the task, consider:
    Option Description
    Country
    You must select 1 country for a gross-up earning.
    Calculation
    Select
    Grossed Up Amount
     (CAN, FRA, IRL, USA).
    Select
    Payroll Input
     (UK).
    Input Amount Allowed?
    Keep the check box clear for gross-up earnings.
    Always Gross-Up
    Select to enable Workday to gross up the earning.
    Gross-Up Type
    For Payroll for Canada, select
    All Taxes [CAN]
    .
    For Payroll for France, select
    All Taxes [FRA]
    .
    For Payroll for Ireland, Workday recommends selecting
    All Taxes [IRL]
    .
    For Payroll for the UK, select what you want to offset. Example: PAYE taxes, NI contributions.
    For Payroll for the U.S., select a gross-up type. If you select
    Company Specific Percentage
    , enter the flat tax rate for the gross-up in the
    Gross-Up Percentage
     prompt.
  3. In the
    Related Calculations
     section of the
    Effective Dated
     tab, add a row with these settings:
    Option Description
    Related Calculation
    Select
    Net Amount (for Gross-Up)
    .
    Groups (CAN, USA)
    You can add this related calculation to the
    Gross Up: Net Amount [CAN USA]
     pay component group, in order to reference it in another calculation.
    Default Calculation
    Automatically populates
    Payroll Input
    . This setting, along with selecting
    Input Allowed?
     enables you to enter the net amount on one of these tasks:
    • Add Payroll Input by Worker
      .
    • Create On Demand Payment for Worker
      .
    Override Calculation
    To retrieve the net amount from a calculation or other source in Workday, select a calculation. Overrides the
    Default Calculation
     setting.
  4. From the
    Groups
     prompt on the
    Non-Effective Dated
     tab, select:
    • Adds to Gross [CAN USA]
      , and either
      Supplemental Earnings - Standard
       or
      Supplemental Earnings - Alternate
       (CAN, USA).
    • GBR Adds to Gross
       (UK).
    • GBR NIable Pay
       (UK).
    • GBR Taxable Pay
       (UK).
    • A pay component group that is part of the gross pay accumulation (FRA).
    • IRL Adds to Gross (IRL)
  5. For Payroll for Canada, as you complete the
    Non-Effective Dated
     tab, consider:
    Option Description
    Groups
    Select:
    • Adds to Gross [CAN USA]
      .
    • All pay component groups needed to match T4 reporting.
    Allocation Reporting Period
    Select how to report the gross-up earning.