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Administrator Guide
Last Updated: 2023-06-23
Create Payroll Commitment Rules (CAN, USA)

Create Payroll Commitment Rules (CAN, USA)

You can configure payroll commitment rules for both filled and unfilled positions indicating which compensation elements and plans are for salary, hourly, and allowance plans.
You can specify corresponding earnings as a worktag for accounting purposes.
Workday recommends that you update your payroll commitment rules at the beginning of the fiscal year.
  1. Access the
    Create Payroll Commitment Rule
     task.
  2. Create all payroll periods for the period schedules within the fiscal years you want to run commitments.
  3. As you complete the
    Payroll
     tab, consider:
    Option Description
    Earning
    Workday map earnings available for selection to compensation elements or compensation plans (salary plans, hourly plans, or allowance plans).
    If you have workers who have activity pay assignments, select the activity pay earning.
    Only include earnings for compensation components that are subject to commitments accounting budgeting.
    For hourly plans, include an earning only if it's a primary component of base compensation. Don't include any hourly earnings that rely on occasional time entry, such as PTO, sick pay, or jury duty. Workday evaluates any hourly earnings by applying all scheduled hours per week for the position, which overstates occasional hourly plans. (For similar reasons, commitments doesn't support unit-based plans, because no concept of scheduled units exists.)
    Select the
    Use Weekly Hours
     check box for the Hourly frequency on the
    Maintain Frequencies
     task as a best practice. If you clear this check box, Workday might treat part-time, hourly workers as full-time.
    When the compensation for a position comes from a compensation element enabled for academic pay, Workday generates commitments and obligations only for the months within the distribution plan period that are in the selected fiscal years.
    Behavior
    Select the type of commitment to apply this earning to, or leave empty to apply it to all types.
    You can have earning contribute only to:
    • Payroll commitments and obligations, excluding fringe benefits calculations.
    • Fringe benefit actuals, excluding both commitments and obligations.
    • Fringe commitment and actuals. Workday generates payroll commitments and obligations for this earning only to support fringe commitments. It isn't posted to financial journals.
    You can update earnings associated with
    Fringe Benefit Actuals Only
     any time throughout the fiscal year.
    Compensation Elements for Earning
    Compensation Plan for Compensation Elements
    Select the compensation element and compensation plan associated with the earning.
    Workday calculates commitments or obligations for positions that have the selected compensation element and plan assigned.
  4. As you complete the
    Fringe Benefit
     tab, consider:
    Option Description
    > Base Amount YTD
    <= Cap Amount YTD
    Enter the minimum and maximum amounts for the salary ranges.
    Default Fringe Percent
    Enter the percent to use when no fringe benefit rule matches the earning.
    Enabling the calculation of Fringe Benefit Actuals on one-time payments increases the actuals reported, which can reveal discrepancies when you compare plans to actuals.