Example: Create a Health Club Membership Earning (USA)
This example illustrates 1 way to configure an earning for a benefit, such as health club
membership.
The company has created a new amount-based health club membership benefit. Set up an earning
to calculate the value of the allowance.
Have a pay components group named
Benefits During Leave
for non-active workers.Define a health club allowance.
Security:
Set Up: Payroll (Calculations - Payroll Specific)
domain in the Core
Payroll functional area.- Access theCreate Earningtask.
- Enter these settings:
Option Description NameHealth Club Membership Taxable BenefitCodeHC_TAX - Enter these settings on theEffective Datedtab:
Option Description Effective DateCurrent DateRun Category EligibilityRegularWorker EligibilityIn the same row:- Benefits Employer Cost (taxable) or Pay Input Exists
- Processing Primary Job
CalculationBenefits: Employer Cost (Taxable) - Enter these settings on theNon-Effective Datedtab:
Option Description GroupsBenefits During LeaveFederal Taxable (Withhold Taxes) [USA]FICA Taxable [USA]Local Withholding Taxable (Withhold Taxes) [USA]Non Cash Taxable BenefitsState Withholding Taxable (Withhold Taxes) [USA]Benefit PlansSelect the health club membership benefit.
Workday processes this earning for eligible workers and deducts taxes on the imputed
income.