Set Up Pay Component Groups to Calculate Disposable Income (CAN)

Create any earnings and nonstatutory deductions you need to calculate disposable income.

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

Before processing withholding orders, you can add the earnings and nonstatutory deductions that you created to the pay component groups Workday uses to calculate disposable income. Workday then uses the rules for the order type to decide which pay component groups to resolve during payroll processing.

You don't need to define statutory deductions or pay component groups for federal, provincial, and territorial taxes. Workday provides these definitions and automatically excludes them from disposable income calculations as required by law. You can run the

All Payroll Withholding Order Data

report for an overview of the information that Workday maintains.

Access the

Edit Earning

task for earnings you created to calculate disposable income.

Add the Withholding Order (All): Periodic and Lump Sum Earnings Canada [CAN]
pay component group to the

Groups

section on the

Non-Effective Dated

tab.

Access the

Edit Deduction

task for nonstatutory deductions you created to calculate disposable income.

Add the appropriate pay component groups to the

Groups

section on the

Non-Effective Dated

tab:

Withholding Order (All): Compulsory Retirement Plan [CAN]

Withholding Order (All): Union Dues [CAN]

Withholding Order (All): Employee Paid Premium Deductions [CAN]

Withholding Order (All): Deductions (Canada) [CAN]

Access the

Edit Pay Accumulation

task.

Select the Net pay accumulation for each run category that you’ve created.

Add the Withholding Order (All): Deductions Canada [CAN]
pay component group to the

Deductions

field on the

Subtract from Pay Accumulation

section.

Steps: Create Earnings

Steps: Create Deductions