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Administrator Guide
Last Updated: 2023-06-23
Concept: Fringe Basis Worktag (CAN, USA)

Concept: Fringe Basis Worktag (CAN, USA)

Fringe Basis
 worktags enable you to identify earning pay components on separate journal lines that relate to fringe benefit expenses for payroll:
  • Actuals
  • Commitments
  • Obligations
This worktag makes reporting and auditing payroll actuals and commitments transactions easier.
When you enable
Fringe Basis
 worktags, Workday:
  • Creates a separate fringe benefit journal line for each earning pay component.
  • Adds
    Fringe Basis
     worktags to the fringe benefit journal lines associated with fringe expenses.
You can enable the worktag and run the
Create Payroll Commitment Adjustment
 task to regenerate unliquidated fringe benefit and obligation journals.

Example

Payroll admin Meredith runs a pay calculation for a worker with 2 earning pay components with different fringe rates:
  • Earning 1: $5,000 with a fringe rate of 25%.
  • Earning 2: $1,000 with a fringe rate of 7.5%.
To identify the earning pay components on separate journal lines rather than as an aggregate on a single journal line, Meredith enables the
Fringe Basis
 worktag. Workday calculates the fringe benefit expense on separate journal lines for each earning:
  • Fringe benefit expense for earning 1: $5,000 × 25% = $1,250.
  • Fringe benefit expense for earning 2: $1,000 × 7.5% = $75.
Workday displays the
Fringe Basis
 worktag on each of these journal lines to identify the earning pay component associated with the fringe expense.