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Administrator Guide
Last Updated: 2025-03-14
Example: Create a Pay On-Demand Offset Deduction

Example: Create a Pay On-Demand Offset Deduction

For Payroll for Canada, this example illustrates 1 way to configure a pay on-demand offset recovery deduction for payments already made to the employee from their net pay.
For Payroll for the U.S., this example illustrates 1 way to configure a pay on-demand offset deduction for payments already made to the employee from their gross pay.
Your company offers pay on-demand to workers, so you need to create a pay on-demand offset deduction to recoup the amount paid in advance.
To configure the deduction, you'll also create:
  • Pay balances to sum pay on-demand amounts.
  • Calculations for deduction eligibility and limits.
Configure the gross pay accumulation to subtract the deduction.
  • Configure the
    Pay On-Demand
     business process.
  • Create a pay on-demand net advance earning (CAN).
  • Create a pay on-demand (gross-up) earning (USA).
  • Security: These domains in the Core Payroll functional area:
    • Calculation Engine: Calculations (Category Segment Security)
    • Set Up: Payroll (Calculations - Payroll Specific)
  1. Access the
    Create Deduction
     task.
  2. Enter these values. It's important that you limit your entries to the ones listed below and complete each entry.
    For Payroll for Canada:
    Option Description
    Name
    Pay On-Demand Recovery Offset
    Code
    PODRCV
    Default Payslip Name
    Pay On-Demand Recovery Offset
    Country
    Canada
    Effective Date
    Use today's date.
    Run Category Eligibility
    Regular
    Calculation
    Payroll Input
    You’ll change this placeholder calculation later.
    Input Amount Allowed?
    Select this check box.
    Calculation Worktag
    Position
    Workday requires the
    Position
     worktag to support pay on-demand for workers with multiple jobs.
    For Payroll for the U.S.
    Option Description
    Name
    Pay On-Demand Offset
    Code
    PODO
    Default Payslip Name
    Pay On-Demand Offset
    Country
    United States of America
    Effective Date
    Use today's date.
    Run Category Eligibility
    Regular
    Calculation
    Payroll Input
    You’ll change this placeholder calculation later.
    Input Amount Allowed?
    Select this check box.
    Calculation Worktag
    Position
    The worktag
    Position
     is required to support pay on-demand for workers with multiple jobs.
  3. Click
    OK
    .
  4. Access the
    Create Pay Balance
     task.
  5. Enter these values:
    For Payroll for Canada:
    Option Description
    Name
    Pay On-Demand Net Advance Current Period Balance
    Code
    PODNABAL
    Display on Result
    Select this check box.
    Country
    Canada
    Filter Worktags
    Position
    Workday requires the worktag
    Position
     to support pay on-demand for workers with multiple jobs.
    Workday recommends adding filter worktags if you don't want wages recouped across certain worktags. Example: The employee changes companies midperiod. When you add the
    Company
     filter worktag, Workday recoups wages only from the company that paid the original pay on-demand. Otherwise, the pay on-demand offset recoups money across companies.
    Include All Retro Values in Current Gross to Net
    Select this option.
    Pay Component
    Pay On-Demand (Net Advance) [CAN]
    Balance Period
    Current Period
    For Payroll for the U.S.:
    Option Description
    Name
    Pay On-Demand Gross Up Current Period Balance
    Code
    PODGUBAL
    Display on Result
    Select this check box.
    Country
    United States of America
    Filter Worktags
    Position
    Workday requires the worktag
    Position
     to support pay on-demand for workers with multiple jobs.
    Workday recommends adding filter worktags if you don't want wages recouped across certain worktags. Example: The employee changes companies midperiod. When you add the
    Company
     filter worktag, Workday recoups wages only from the company that originally made the pay on-demand. Otherwise, the pay on-demand offset recoups money across companies.
    Include All Retro Values in Current Gross to Net
    Select this option.
    Pay Component
    Pay On-Demand (Gross Up) [USA]
    Balance Period
    Current Period
  6. Click
    OK
    .
  7. Access the
    Create Pay Balance
     task.
  8. Enter these values:
    For Payroll for Canada:
    Option Description
    Name
    Pay On-Demand Recovery Offset Current Period Balance
    Code
    PODRBAL
    Display on Result
    Select this check box.
    Country
    Canada
    Filter Worktags
    Position
    Include All Retro Values in Current Gross to Net
    Select this option.
    Pay Component
    Pay On-Demand Recovery Offset [CAN]
    Balance Period
    Current Period
    For Payroll for the U.S.:
    Option Description
    Name
    Pay On-Demand Gross Up Offset Current Period Balance
    Code
    PODGUOS
    Display on Result
    Select this check box.
    Country
    United States of America
    Filter Worktags
    We recommend adding the same filter worktags you use for other pay balances.
    Include All Retro Values in Current Gross to Net
    Select this option.
    Pay Component
    Pay On-Demand Offset [USA]
    Balance Period
    Current Period
  9. Click
    OK
    .
  10. Access the
    Create Pay Balance
     task.
  11. Enter these values:
    For Payroll for Canada:
    Option Description
    Name
    Pay On-Demand Subperiod Balance
    Code
    POD_SUB
    Display on Result
    Select this check box.
    Country
    Canada
    Filter Worktags
    Position
    Include All Retro Values in Current Gross to Net
    Select this option.
    Pay Component
    Pay On-Demand (Net Advance) [CAN]
    Balance Period
    Subperiod Start Date to Subperiod End Date
    For Payroll for the U.S.:
    Option Description
    Name
    Pay On-Demand Subperiod Balance
    Code
    POD_SUB
    Display on Result
    Select this check box.
    Country
    United States of America
    Filter Worktags
    We recommend adding the same filter worktags you use for other pay balances.
    Include All Retro Values in Current Gross to Net
    Select this option.
    Pay Component
    Pay On-Demand (Gross Up) [USA]
    Balance Period
    Subperiod Start Date to Subperiod End Date
  12. Click
    OK
    .
  13. Access the
    Create Value Comparison Calculation
     task.
  14. Enter these values:
    For Payroll for Canada:
    Option Description
    Name
    Pay On-Demand Subperiod Balance = 0 (Canada)
    Category
    Payroll
    1st Operand
    Pay On-Demand Subperiod Balance [CAN]
    Operator
    equal to
    2nd Operand
    0
    For Payroll for the U.S.:
    Option Description
    Name
    Pay On-Demand Subperiod Balance = 0
    Category
    Payroll
    1st Operand
    Pay On-Demand Subperiod Balance [USA]
    Operator
    equal to
    2nd Operand
    0
  15. Click
    OK
    .
  16. Access the
    Create Value Comparison Calculation
     task.
  17. Enter these values:
    For Payroll for Canada:
    Option Description
    Name
    Pay On-Demand Net Advance Balance > 0 Canada
    Category
    Payroll
    1st Operand
    Pay On-Demand Net Advance Current Period Balance [CAN]
    Operator
    greater than
    2nd Operand
    0
    For Payroll for the U.S.:
    Option Description
    Name
    Pay On-Demand Gross Up Balance > 0
    Category
    Payroll
    1st Operand
    Pay On-Demand Gross Up Current Period Balance [USA]
    Operator
    greater than
    2nd Operand
    0
  18. Click
    OK
    .
  19. Access the
    Create Conditional Calculation
     task.
  20. Enter these values:
    Payroll for Canada:
    Option Description
    Name
    Pay On-Demand Limit Calculation Canada
    Category
    Payroll
    Order
    a
    Condition
    Pay On-Demand Subperiod Balance = 0 Canada
    Result
    Pay On-Demand Earning Pay Balance
    Default Response
    Pay On-Demand Subperiod Balance [CAN]
    For Payroll for the U.S.:
    Option Description
    Name
    Pay On-Demand Limit Calculation
    Category
    Payroll
    Order
    a
    Condition
    Pay On-Demand Subperiod Balance = 0
    Result
    Pay On-Demand Gross Up Current Period Balance
    Default Response
    Pay On-Demand Subperiod Balance [USA]
  21. Click
    OK
    .
  22. Access the
    Create Arithmetic Calculation
     task.
  23. Enter these values:
    For Payroll for Canada:
    Option Description
    Name
    Pay On-Demand Net Advance Recovery Balance Calc
    Category
    Payroll
    1st Operand
    Pay On-Demand Net Advance Current Period Balance [CAN]
    Operator
    Subtract
    2nd Operator
    Pay On-Demand Recovery Current Period Balance [CAN]
    For Payroll for the U.S.:
    Option Description
    Name
    Pay On-Demand Gross Up Offset Balance Calc
    Category
    Payroll
    1st Operand
    Pay On-Demand Gross Up Current Period Balance [USA]
    Operator
    Subtract
    2nd Operator
    Pay On-Demand Gross Up Offset Current Period Balance [USA]
  24. Click
    OK
    .
  25. Access the
    Edit Deduction
     task.
  26. Select the:
    • Pay On-Demand Recovery Offset [CAN]
       deduction (CAN).
    • Pay On-Demand Offset [USA]
       deduction (USA).
    You created this deduction in steps 1 - 3. Now you'll add the calculations you've created.
  27. Enter these values:
    For Payroll for Canada:
    Option Description
    Worker Eligibility
    Pay On-Demand Net Advance Balance > 0 Canada
    Calculation
    Delete
    Payroll Input
    .
    Select
    Pay On-Demand Net Advance Recovery Balance Calc
    .
    For Payroll for the U.S.:
    Option Description
    Worker Eligibility
    Pay On-Demand Gross Up Balance > 0
    Calculation
    Delete
    Payroll Input
    .
    Select
    Pay On-Demand Gross Up Offset Balance Calc
    .
  28. On the
    Effective Dated
     tab, enter these values in the
    Limits
     grid:
    For Payroll for Canada:
    Value
    Balance Period
    Based On
    Pay On-Demand Limit Calculation [CAN]
    Subperiod Start Date to Subperiod End Date
    Pay On-Demand Recovery [CAN]
    For Payroll for the U.S.:
    Value
    Balance Period
    Based On
    Pay On-Demand Limit Calculation
    Subperiod Start Date to Subperiod End Date
    Pay On-Demand Offset [USA]
  29. On the
    Non-Effective Dated
     tab, select these values from the
    Groups
     prompt:
    For Payroll for Canada,
    Post Tax Deductions
    .
    For Payroll for the U.S.:
    • Federal Taxable Reduction [USA]
    • FICA Taxable Reduction [USA]
    • FUI Taxable Reduction [USA]
    • Gross Wages Reduction for Pay On-Demand [USA]
    • Local Withholding Taxable Reduction [USA]
    • State Withholding Taxable Reduction [USA]
    • SUI Taxable Reduction [USA]
  30. Click
    OK
    .
  31. For Payroll for the U.S.:
    1. Access the
      Edit Pay Accumulation
       task.
    2. From the
      Pay Accumulation
       prompt, select
      Gross
      .
    3. In the
      Subtract from Pay Accumulation
       section, select
      Pay On-Demand Offset
      .
    4. Click
      OK
      .
Workday automatically deducts the offset deduction from:
  • Net wages to ensure the worker isn't paid twice (CAN).
  • Gross wages to ensure that the worker isn't paid twice for the same hours (USA).