Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2023-06-23
Example: Calculate Gross Bonus Amount Based on Net Pay Input

Example: Calculate Gross Bonus Amount Based on Net Pay Input

This example illustrates how to set up a gross-up calculation and provide the net amount through payroll input.
You want to recognize Kelly with a 5000 award for outstanding service. You want Kelly to get the full 5000, so you need to gross up the amount to include taxes. You're managing the one-time award through a pay input paid with the regular January pay.
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
    Award
    Code
    AWARD
    Country
    Select the country for which you’re creating the pay component.
  3. Enter these values on the
    Effective Dated
     tab:
    Option Description
    Effective Date
    The effective date of the earning.
    Calculation
    Grossed Up Amount
     (CAN, FRA, IRL, USA)
    Payroll Input
     (UK)
    Input Amount Allowed
    Unchecked
    Always Gross Up
    Checked
    Gross Up Type
    All Taxes [FRA]
     (FRA)
    All Taxes [CAN]
     (CAN)
    All Taxes [IRL]
     (IRL)
    All Taxes [GBR]
     (UK)
    All Taxes
     (USA)
  4. Add a row to the
    Related Calculation
     grid.
    Related Calculation
    Default Calculation
    Input Allowed?
    Net Amount (for Gross-Up)
    Payroll Input
    Selected
  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]
    Payroll for the UK:
    • GBR Adds to Gross [GBR]
    • GBR NIable Pay [GBR]
    • GBR Taxable Pay [GBR]
    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 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
    .
  6. Click
    OK
    .
  7. Add payroll input for the Award earning.
When you run the January payroll calculation, Workday calculates:
  • Net award amount: 5000.
  • Gross award amount: 5000 plus taxes (CAN, UK, USA).
  • Gross award amount: 5000 plus taxes and contributions (FRA).