Configure Costing for Specific Employer-Paid Expense

Security: Set Up: Payroll (Calculations – Payroll Specific)
in the Core Payroll functional area.

You can:

Cost applicable employer-paid expenses to the worker's assigned costing allocations.

Cost 100% of all applicable employer-paid expenses to the worker's organization defaults.

Exclude specific earnings from the applicable employer-paid expense costing distribution.

Set earnings-based costing rules for employer-paid expenses based on specific conditions or exclude specific earnings from applicable employer-paid expense costing.

Access the

Edit Employer Paid Expense Costing Allocation Defaults

task.

Enter the

Pay Group

Company

, and

Employer Paid Expense

You can enter only 1 employer-paid expense per pay group and company.

As you complete the task, consider:

Option	Description
Start Date	Enter a start date that falls within the date range of a processing pay period or subperiod.
End Date	(Optional) Enter an end date.
Costing Allocation Defaults	Select from: Worker's Assigned Costing Worker's Organization Assignment Position Restrictions Costing Earnings Based Costing
Exclude Earnings	Enter specific earnings that you want to exclude from the employer-paid costing distribution. Exclude Earnings is available only if you select Earnings Based Costing as your costing allocation default.
Earnings Based Costing Options	If you select Earnings Based Costing in Costing Allocation Defaults , you can configure these options. Conditions Sum of Payroll Earnings is Zero No Earning Lines Costing Allocation Type Position Restrictions Costing Worker's Assigned Costing Worker's Organizational Assignment

Workday processes costing rules depending on the configuration you select.

If you don't configure costing allocation rules, Workday automatically costs employer-paid expenses to earnings proration. If no earnings proration exists, Workday costs employer-paid expenses to a worker's organization assignment.

Default from Worker's Costing Allocations

When a payroll administrator selects

Default from Worker's Costing Allocations

, Workday evaluates payroll result lines and uses:

Worker + Position level costing allocations for all position-based, employer-paid deductions.

Worker level costing allocations for employer-paid deductions that aren't position-based.

A worker's organization defaults if the worker doesn't have assigned costing allocations.

The payroll administrator at Global Modern Services uses the

Default from Worker's Costing Allocations

option. They cost 50% of an employer-paid expense ($200) to Cost Center 1, Fund 1. They cost 50% to Cost Center 2, Fund 2, which comes from the worker's assigned costing allocation.

Distribution %	Costing	Expense Distribution
50%	Cost Center 1, Fund 1	100
50%	Cost Center 2, Fund 2	100
Total		200

Default from Worker's Organization Assignment

The payroll administrator at Global Modern Services uses the

Default from Worker's Organization Assignment

option. They cost 100% of an employer-paid expense ($500) to the worker's default organization assignment. Workday applies the costing rule and distributes the employer-paid expense as:

Earning	Gross	Distribution %	Costing	Expense Distribution
Base Pay	5000	0%	Cost Center 1, Fund 1
Spot Bonus	2000	0%	Cost Center 2, Fund 2
Car Allowance	1000	0%	Cost Center 3, Fund 3
		100%	Cost Center 4, Fund 4 (Worker's Default Organization)	500
Total				500

Exclude Earnings

The payroll administrator at Global Modern Services uses

Exclude Earnings

option to exclude Spot Bonus
from the employer-paid expense costing distribution. Workday applies the costing rule and distributes the employer-paid expense as:

Earning	Gross	Distribution %	Costing	Expense Distribution
Base Pay	5000	83%	Cost Center 1, Fund 1	416.67
Spot Bonus	2000	-	Cost Center 2, Fund 2	-
Car Allowance	1000	17%	Cost Center 3, Fund 3	83.33
Total	6000	100%		500

Use the

View All Employer Paid Expense Costing Allocation Defaults

report to review any configured defaults.