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Administrator Guide
Last Updated: 2024-03-08
Set Up Pay Component Groups to Calculate Disposable Earnings (AUS)

Set Up Pay Component Groups to Calculate Disposable Earnings (AUS)

Security:
Set Up: Payroll (Calculations - Payroll Specific)
Create the earnings and deductions that you use to calculate disposable income.
Workday uses disposable earnings to derive the income that withholding orders can be deducted from. Workday determines which pay component groups to resolve during processing based on:
  • Applicable legislation.
  • Order type.
  • Any overrides that have been applied at the order level.
  1. Add earnings to the Workday provided pay component groups:
    1. Access the
      Edit Earning
       task.
    2. On the
      Non-Effective Dated
       tab, select the appropriate pay component groups in the
      Groups
       field.
      Earnings
      Pay Component Group
      Earnings paid to employees regularly, such as base pay and hourly pay.
      AUS Adds to Gross [AUS]
      One-time or occasional earnings.
      AUS Adds to Gross [AUS]
  2. Add deductions to the Workday provided pay component groups:
    1. Access the
      Edit Deduction
       task.
    2. On the
      Non-Effective Dated
      tab, select the appropriate pay component groups in the
      Groups
       field.
      Deductions
      Pay Component Group
      All pre-tax deductions.
      AUS Pre Tax Deductions [AUS]
      All pre-tax deductions that are deducted after child support deductions.
      AUS Excluded Pre Tax Deductions from Withholding Order [AUS]
Workday subtracts a worker's protected earnings from their disposable earnings, to determine the maximum amount that can be withheld.
Disposable Earning Calculation:
  • Disposable earnings - protected earnings = maximum amount for deductions.
  • + Periodic earnings
  • + One time payments or irregular earnings
  • - All pre-tax deductions
  • + Excluded deductions
  • - PAYG taxes
  • = Disposable income