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Administrator Guide
Last Updated: 2025-03-14
Steps: Set Up Pay On-Demand

Steps: Set Up Pay On-Demand

Review setup considerations for pay on-demand.
Set up pay on-demand to enable employees to use employee self-service (ESS) on desktop or mobile to request early payment of a portion of accumulated wages. You can associate the
Pay On-Demand
 business process with a pay group and configure unique business processes for different pay groups.
For Payroll for Canada, to receive pay on-demand Electronic Funds Transfer (EFT) payments, employee payment elections must include a Canadian bank account. To use same-day EFT payments, confirm that your organization's bank or outsourced payment provider supports them.
For Payroll for the U.S., to receive pay on-demand Automated Clearing House (ACH) payments, employee payment elections must include a U.S. bank account. To use same-day ACH payments, confirm that your organization's bank or outsourced payment provider supports them.
  1. Access the
    Create Business Process Definition (Default Definition)
     task.
    From the
    Business Process Type
     prompt, select
    Pay On-Demand
    .
    On the
    Pay On-Demand
     business process, add a row with these values on the
    Business Process Steps
     tab:
    Order
    Type
    Specify
    Run As User
    b
    Batch / Job
    Payroll On-Demand Calculation and Complete
    Add any user with access to the
    Process: Off Cycle (On Demand)
     domain in the Core Payroll functional area.
    From the related actions menu of the
    Batch/Job
     step, select
    Business Process
    Set as Completion
    .
    (Optional) Add this step and enter conditions as needed:
    Order
    Type
    Specify
    c
    Action
    Review Pay On-Demand
    (Optional) Add
    Notifications
     to the business process. Example: Add a notification to alert the payroll administrator and the employee when a pay calculation fails.
    Security: These domains in the System functional area:
    • Business Process Administration
    • Manage: Business Process Definitions
    • Add
      Employee as Self
      . Or, create your own rule-based security groups and apply them on the business process policy for the initiating action.
    • Add
      Payroll Administrator
       to other business process actions as required in your organization.
  3. Activate Pending Security Policy Changes.
  4. Edit Business Processes.
  5. Set up period schedules for pay on-demand to define:
    • When workers can request pay on-demand.
    • How to adjust the payment date for weekends.
  6. For Payroll for Canada, create a pay on-demand net advance earning.
    When you configure pay on-demand as net advance or nontaxable earnings, consider these options:
    Net Advance Earning
    Nontaxable Earning
    Employee
    Receives the net amount that they requested
    Receives the net amount that they requested
    Taxation Rate
    Standard withholding calculation.
    Regular calculation on the on-cycle results.
    When you don't configure earnings for pay on-demand, the amount available for pay on-demand is zero.
  7. For Payroll for the U.S., create a pay on-demand (gross-up) earning.
    When you configure pay on-demand as gross-up or nontaxable earnings, consider these options:
    Gross-Up Earning
    Nontaxable Earning
    Employee
    Receives the net amount that they requested
    Receives the net amount that they requested
    Taxation Rate
    Standard withholding rates
    Regular rates on the on-cycle
    When you don't configure earnings for pay on-demand, the amount available for pay on-demand is zero.
  8. Create a pay on-demand offset deduction to reduce earnings by the total pay on-demand payments for the pay period.
  9. To ensure that Workday recoups pay on-demand payments, configure your gross pay accumulation to subtract the total of pay on-demand payments from gross pay.
  11. Either:
    • Create a pay component group to display the pay on-demand offset in the deduction section of the payslip.
    • Create a memo earning to display the pay on-demand offset deduction as a negative earning.
  12. Specify costing allocation instructions for a pay on-demand earning.
  13. Configure account posting rules for payroll earnings and payroll deductions.
  14. Configure settlements to process payments.
  15. (Optional) Add the
    Pay On-Demand
     task as a menu item to the
    Pay
     dashboard.
Employees can initiate the business process to create a request by:
  • Selecting the
    Pay
     tile on mobile, then selecting
    Make a Request
     in the
    Pay On-Demand
     section.
  • Accessing the
    Pay On-Demand
     task.
  • Selecting
    Pay On-Demand
     from the
    Pay
     worklet.
  • Selecting
    Pay On-Demand
     from the
    Pay Dashboard
    .
Workday:
  • Generates a payroll result for each pay on-demand request using the Pay On-Demand Net Advance earning on the
    Pay Input
     line for Payroll for Canada.
  • Generates a payroll result for each pay on-demand request using the Pay On-Demand (Gross-Up) earning on the
    Pay Input
     line for Payroll for the U.S.
  • Doesn't take additional tax withholding amounts into consideration when calculating the pay on-demand result.
  • Lists the completed date on the
    Pay On-Demand
     business process as the payment date unless you offset the date on the period schedule.
Use the
Pay On-Demand Amounts Paid and Recouped
 report to review the amounts paid to workers and recouped from gross pay.