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Administrator Guide
Last Updated: 2023-06-23
Example: Gross Up a Noncash Payment Amount

Example: Gross Up a Noncash Payment Amount

This example illustrates how to gross up a noncash payment using an earning and a deduction.
You want to give Emeline a gift card of 200 for her outstanding work. This is a noncash taxable income, but you don't want her to net pay reduced by any taxes due. You're managing the payment in December through payroll input using:
  • A noncash gross-up earning.
  • A net deduction to offset the amount.
  1. Create a gross-up earning, named
    Noncash Award (Gross Up)
     for the gift card based on a net pay input.
  2. Create a net deduction to offset the grossed-up amount.
  3. Access the
    Add Payroll Input by Worker
     task and enter these values:
    Option Description
    Workers
    Emeline
    Start Date
    December 1
    One-Time
    Selected
    Override
    Selected
    Regular Run Category
    Selected
    Security:
    Worker Data: Payroll (Payroll Input)
     domain in the Core Payroll functional area.
  4. Click
    OK
    .
  5. Enter these values on the
    Input
     grid:
    Pay Component
    Input Details - Type
    Input Details - Value
    Noncash Award (Gross Up)
    Net Amount (for Gross- Up)
    200
    Noncash Award (Offset)
    Amount
    200
When you run the December payroll calculation, Workday calculates:
  • Gross award amount: 200 plus taxes and contributions.
  • Net offset deduction: 200
This results in a net award amount of zero.