Setup Considerations: Salary Over the Cap (USA)
You can use this topic to help make decisions when planning your configuration and use of salary over the cap. It explains:
- Why to set it up.
- How it fits into the rest of Workday.
- Downstream impacts and cross-product interactions.
- Security requirements and business process configurations.
- Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.
What It Is
Salary over the cap enables you to define rules to set up salary caps so that payroll expenses don't exceed limitations for the salaries of workers with grants.
Business Benefits
Salary over the cap helps you:
- Comply with regulatory and reporting requirements.
- Track federal funding allocated for research.
- Calculate under and over the salary for a grant.
- Configure costing rules for salary exceeding the cap amount.
Use Cases
Salary over the cap is used by universities, hospitals, or specialized agencies that receive funding from the federal government or a sponsor to do research work. Example: National Institute of Health (NIH) provides funding for stem cell research with annual salary cap amount of $240,000 to the Global Modern University.
Questions to Consider
Questions | Considerations |
|---|---|
How can you set up worktags for salary over the cap costing? | You can use the Maintain Salary Over the Cap Type report to add specific Salary Over the Cap Type worktags. Workday includes the salary over the cap type worktags while evaluating over the cap amount, for the worker whose salary exceeds the cap. |
How do you define salary caps? | You can use the Maintain Salary Caps task to define:
|
How do you configure alternate salary over the cap costing? | You can use the Assign Costing Allocation task to set up costing rules for salary exceeding the cap amount, including allocating the over the cap portion of a worker's salary to grant worktags other than the parent grant. |
Recommendations
Workday recommends that you don't make changes if you've already assigned the salary cap to an award line and payroll exists.
Requirements
You must:
- Set up an award with a sponsor salary cap in Workday Grants Management, to be able to configure salary over cap costing in Workday Payroll.
- Enable salary over the cap for payroll accounting to be able to set up the salary over the cap feature for payroll commitments.
Limitations
You can't make payroll accounting adjustments for salary over the cap costing.
Tenant Setup
You can use the
Maintain Payroll Accounting Options
task to enable:
- Salary over the cap for payroll accounting and commitments.
- Using the number of work periods in the academic year to calculate the salary over the cap amount for a pay period. Workday recommends selecting the check box when you use specialized configurations of academic pay using both an:
- Earning for the annual work period.
- Offset earning for the accrual payment.
Security
Domains | Considerations |
|---|---|
Set Up: Salary Cap in the Core Payroll functional area. | Enables access to the:
|
Set Up: Tenant Setup - Payroll in the System functional area. | Enables access to the Edit Tenant Setup - Payroll task. |
Set Up: Payroll (Calculations - Payroll Specific)
| Enables access to the Maintain Payroll Accounting Options task. |
Business Processes
You can configure the
Assign Costing Allocation
business process to assign alternate costing rules for salary caps.Reporting
Reports | Considerations |
|---|---|
Salary Over the Cap Audit Report | Verify if the salary over the cap calculation for a worker needs review.
This report currently doesn't support the Salary Over the Cap - Allow Grant Worktags in Suballocations tenant setting. When you enable this setting, values on the Salary Over Cap Pay Amount for Grant with a Salary Cap column report incorrectly. |
Retro Journal Lines with Salary Cap Grants | Identify retro period journal lines associated with grants using the Salary Over the Cap feature and determine if the amounts charged over or under the salary cap. |
Integrations
No impact.
Connections and Touchpoints
Features | Considerations |
|---|---|
Grants Management | You need a separate Grants Management license to be able to create and use awards in Workday. If you have Grants Management with Payroll Accounting, you can:
|
Effort Certification | When a payroll journal line displays a Salary Over the Cap worktag, the worktag displays for effort certification. Salary Over the Cap Type is a payroll worktag; you can't change it. |
Payroll Commitments | When you enable salary over the cap for payroll commitments, Workday calculates costing and standard salary cap proration for these payroll commitment transactions:
|