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Administrator Guide
Last Updated: 2024-10-18
Define Cost Allocations for Employer-Paid Expenses

Define Cost Allocations for Employer-Paid Expenses

Enable worktags for cost allocations.
Security:
Set Up: Payroll (Calculations - Payroll Specific)
 domain in Core Payroll functional area.
You can specify how to allocate employer-paid expenses for a selected pay group across:
  • Cost centers.
  • Projects.
  • Grants.
  • Other organization types and locations.
These expenses add to labor costs, such as employer-paid taxes and benefits, but they don't add to gross or net pay.
The cost allocations you specify for a pay group and company are:
  • Subject to the costing hierarchy for employer-paid expenses.
  • Applied specifically to either debit or credit lines of corresponding journal entries.
  1. Access the
    Edit Employer Paid Expense Costing Allocation
     task.
    1. Select a
      Pay Group
      .
    2. If applicable, select a
      Company
       and an
      Employer Paid Expense
      .
    You can assign costing allocations only to Workday-owned employer paid expenses.
  2. Enter
    Debit
     or
    Credit
     allocations, or both.
    • To allocate 100% of the employer-paid expenses to the same worktag values, enter instructions in 1 row.
    • To distribute the allocations, enter multiple rows.
    As you complete the task, consider:
    Field
    Description
    Start Date
    End Date
    If an allocation exists, enter its
    End Date
    . New costing allocation dates can't overlap past or future instructions.
    Costing Company
    Enter a company to cost specific employer-paid expenses. The
    Costing Company
     column is available only when you select the
    Intercompany Accounting - Enable
     check box in the
    Payroll Accounting
     section on the
    Edit Tenant Setup - Payroll
     task.
    Costing Override Worktag
    Select a value for at least 1 of the worktags listed in the
    Required (Override At Least One)
     column; Workday removes the worktag from that column.
    When you've enabled worktag balancing, enter a value for the balancing worktag.
    You can also select additional worktags that you've enabled for payroll costing.
    When you've set up related worktags, Workday adds the one you select and its related worktags. You can remove any you don't want.
    You can only select 1 of these worktags as an override:
    Project
    ,
    Project Plan Phase
    , or
    Project Plan Task
    .
    Distribution Percent
    The sum of all rows must equal 100%.
When rounding is necessary, Workday adjusts the last allocation.
Workday displays the allocated amounts on the
Actuals
 tab of the
View Payroll Results
 page.
To view allocations for employer-paid expenses, access the
All Employer Paid Expense Costing Allocations
 report.