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Administrator Guide
Last Updated: 2023-06-23
Steps: Set Up Proration

Steps: Set Up Proration

Review setup considerations for payroll proration.
In response to certain midperiod events, Workday divides a payroll period into subperiods with separate payroll calculations before and after the event.
You can configure how Workday calculates pay component values for each subperiod. In some cases you can configure whether Workday applies:
  • Gross-to-net proration.
  • Pay component proration.
  • No proration (FRA).
Payroll for Ireland only supports pay component proration.
  1. Access the
    Maintain Days Worked by Work Shift
    task to assign days to shifts when you want to prorate by days worked.
    Security:
    Set Up: Payroll (Proration - Work Shift Days Worked)
    domain in the Core Payroll functional area.
  2. (Optional) Access the
    Maintain Payroll Proration Override
    report.
    1. Access the row of an editable event category, and click
      Edit
      .
    2. From the
      Proration Type
      prompt, select the type of proration to apply.
    You can't modify a payroll proration type when there are payroll results in progress.
    Security:
    Set Up: Payroll
    domain in the Core Payroll functional area.
When you calculate payroll, Workday divides a payroll period into subperiods with separate payroll calculations before and after the event and prorates pay component values across subperiods.
When you enable midperiod costing for your tenant:
  • Workday prorates costing allocation by the proration type on the pay component.
  • Costing always prorate regardless of pay component proration.
Example: If you set a pay component to prorate by calendar days and your pay period is 6/1 - 6/15, then there's 15 total days in the period. If there's a costing change on 6/8, then 7 days (6/1-6/7) of the total 15 go to the first costing. The other 8 days (6/8-6/15) go to the second costing.
To identify workers with prorated results, access the
Proration Changes for Group of Workers
report.