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Administrator Guide
Last Updated: 2023-06-23
Example: Gross Up One-Time Payment Amount

Example: Gross Up One-Time Payment Amount

This example illustrates how to gross up a gift card paid through a one-time payment.
You want to award Javier a 100 gift card as a one-time merit award. Global Modern Services covers all taxes, so Javier will receive the full amount. You’re creating the earning as part of a one-time payment in Workday Compensation. You want to use the net amount from the one-time payment plan.
  • Set up an
    Incentive award
     compensation element, and attach it to one-time payment plan for gift cards.
  • Security:
    Set Up: Payroll (Calculations - Payroll Specific)
     domain in the Core Payroll functional area.
  1. Access the
    Create Earning
     task.
  2. Enter these values:
    Option Description
    Name
    Gift Card (Gross-up)
    Code
    GIFT
    Country
    Select the payroll country.
  3. Enter these values on the
    Effective Dated
     tab:
    Option Description
    Effective Date
    The effective date of the earning.
    Worker Eligibility
    Compensation: Compensation Element Value Exists and <> 0
    Calculation
    Grossed Up Amount
    Always Gross-Up
    Checked
    Gross-Up Type
    All Taxes [CAN]
     (CAN)
    All Taxes [FRA]
     (FRA)
    All Taxes [IRL]
     (IRL)
    All Taxes [GBR]
     (UK)
    All Taxes
    (USA)
    Compensation Element
    Incentive award
  4. Add a row to the
    Related Calculation
     grid with these settings:
    Related Calculation
    Default Calculation
    Override Calculation
    Input Allowed?
    Net Amount (for Gross-Up)
    Payroll Input
    Compensation: Compensation Element Value Annualized
    Checked
  5. On the
    Non-Effective Dated
     tab:
    From the
    Groups
     prompt, select:
    Payroll for Canada:
    • Adds to Gross [CAN]
    • All pay component groups needed to match T4 reporting.
    Payroll for France:
    • FRA Adds to Gross [FRA]
    For Payroll for Ireland:
    • IRL Adds to Gross [IRL]
    • IRL Employee PRSIable Pay [IRL]
    • IRL Employer PRSIable Pay [IRL]
    • IRL Taxable Pay [IRL]
    • IRL USCable Pay [IRL]
    Payroll for the UK:
    • GBR Adds to Gross [GBR]
    • GBR NIable Pay [GBR]
    • GBR Taxable Pay [GBR]
    Payroll for the U.S.:
    • Adds to Gross [USA]
    • Either
      Supplemental Earnings - Standard [USA]
       or,
      Supplemental Earnings - Alternate [USA]
    From the
    Allocation Reporting Period
     prompt:
    Payroll for Canada:
    Period Earned
    .
Request a one-time payment for Javier with an amount of 100.
To exclude the value of the imputed income from the gross pay calculation, create a post-tax deduction that subtracts the grossed-up amount from gross pay.