Concept: Pay On-Demand Accounting

You can configure accounting for pay on-demand earning and pay on-demand offset deduction:

As a direct expense (USA).

As a payroll advance (CAN, USA).

For payroll advances, use these tasks:

Assign Costing Allocation

(USA only) - specify costing instructions for the Pay On-Demand earning across cost centers, projects, grants, locations, or other costing dimensions.

View Account Posting Rule Set

(CAN, USA).

Edit account posting rules to direct where pay on-demand transaction journals post to ledger accounts:

For Net Advance
for Payroll for Canada.

For Payroll Earning
and Payroll Deduction
for Payroll for the U.S.

Direct Expense (USA)

When you set up pay on-demand as a direct expense, you can charge the gross, employer taxes, and fringe to the worker’s standard costing assignments. The pay on-demand payments completed in a pay period reduce the associated on-cycle gross.

Payroll Advance

When you set up pay on-demand as an advance:

The net becomes a receivable for Payroll for Canada. You can charge the net to the worker's standard costing assignments. The associated on cycle net recovery reverses the receivable.

The gross becomes a receivable for Payroll for the U.S. You can charge the gross, employer taxes, and fringe to the worker’s standard costing assignments. The associated on-cycle gross reverses the receivable.

Example (CAN)

Diana works at the public safety department as a student intern. The gross salary is 2000. Diana makes a pay on-demand request of 200 during the biweekly pay period 2020-08-03 to 2020-08-16.

As a payroll administrator, you can use the payroll advance method:

Accounting Method	Cost Center	Account Posting Rule	Pay Component	Ledger
Payroll Advance	Benefits	Payroll Earning	Pay On-Demand	Payroll On-Demand Advance Receivable
	Benefits	Payroll Deduction	Pay On-Demand Offset	Payroll On-Demand Advance Receivable

When you complete payroll for the pay on-demand request for the pay period, Workday calculates the net advance as:

Gross	250
Statutory taxes	50
Previous requests	50
Percent to withhold	60
Net Pay	90

For on-cycle, Workday calculates gross-to-net amounts as:

Gross pay	2500
Statutory deductions	550
ER benefits	50
Voluntary deductions	50
Pay On-Demand Recovery	90
Net pay	1760

To view journal entries, drill into the worker's Pay On-Demand
payroll result type and click

Actuals

. For payroll advance, Workday uses the Payroll On-Demand Advance Receivable
ledger account to post the credits and debits.

You can:

Run the

Payroll Accounting by Period/Pay Group

report to view all accounting transactions for a specific pay period or pay group.

Access the

Edit Earning and Employee Deduction Cost Allocations

task to edit cost allocations for earnings and deductions.

Example (USA)