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Administrator Guide
Last Updated: 2023-06-23
Example: Create FLSA Gross-Up Bonus Earning

Example: Create FLSA Gross-Up Bonus Earning

This example illustrates 1 way to create an FLSA bonus earning to use for gross-up bonuses.
Terry needs to set up an earning for FLSA bonus amounts that gross up from an input net amount.
Set up gross-up calculations.
Security:
Set Up: Payroll (Calculations - Payroll Specific)
 domain in the Core Payroll functional area.
  1. Access the
    Create Earning
     task.
  2. Enter these settings:
    Option Description
    Name
    FLSA Gross-Up Bonus
    Code
    FLSA_GUB
  3. Enter these settings on the
    Effective Dated
     tab:
    Option Description
    Calculation
    Select
    Grossed up Amount
    .
    Input Amount Allowed?
    Leave the check box clear for gross-up earnings.
    Always Gross Up
    Selected.
    Gross-Up Type
    Select a gross-up type. If you select
    Company Specific Percentage
    , enter the flat tax rate for the gross-up in the
    Gross-Up Percentage
     prompt.
    Resolve by FLSA Period
    Selected.
    Allow Coverage Dates for Bonuses
    Selected.
    When you don't select this check box, the
    Coverage Dates
     fields don't display when you run the
    Add Payroll Input by Worker
     task, so you can't allocate the bonus across a coverage period.
    FLSA Amount Allocation Across Coverage Dates
    Select
    Paid on Active Periods – Full Amount
    .
    The allocation method you select depends on whether you want to calculate and pay the bonus in nonactive periods.
  4. From the
    Groups
     prompt on the
    Non-Effective Dated
     tab, select
    FLSA Wages [USA]
    , along with other pay component groups as needed.
When Terry adds payroll input for the bonus, she can enter the net amount for the worker to receive. Workday calculates the tax amounts.