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Administrator Guide
Last Updated: 2023-09-22
Create Salary Caps (USA)

Create Salary Caps (USA)

  • Create a
    Salary Over the Cap Type
     worktag for each salary cap definition on the
    Maintain Salary Over the Cap Type
     task.
  • Security:
    Set Up: Salary Cap
     domain in the Core Payroll functional area.
You can create a salary cap so that payroll expenses don't exceed limitations.
Example: The National Institutes of Health decides they won't accept billings for salaries over $183,300. Dr. Reid Tsai is researching for the Environment Health and Safety of Nanotechnology grant and has a salary of $200,000. You can create and assign a salary cap so that Workday applies alternate payroll costing to the excess $16,700.
You must have Workday Payroll to create, assign, and calculate salary caps.
  • If you use Workday Payroll with Grants Management, assign the salary cap on an award line with a grant before you configure payroll costing allocations.
  • If you use Workday Payroll, but not Grants Management, assign the salary cap to a grant worktag before you configure payroll costing allocations.
  1. Access the
    Maintain Salary Caps
     task.
  2. As you complete the task, consider:
    Option Description
    Salary Over the Cap Type
    You can assign a
    Salary Over the Cap Type
     worktag to 1 or more salary caps.
    Pay Component Group
    You can select Workday-delivered pay component groups or create your own custom salary cap groups.
    In Use
    Indicates whether the salary cap is in use. You can't edit salary caps that are in use.
    Date From
    Date To
    Salary cap intervals can't overlap. Only the most recent interval can have no value in
    Date To
     field.
    Currency
    Workday currently only supports USD.
  • For Workday Grants Management, you can assign the salary cap definition to an award line with a grant, and assign the grant to a costing allocation.
  • For Workday Payroll, you can assign the salary cap definition to a grant worktag, and assign the grant to a costing allocation.
Workday uses that costing allocation to generate payroll, and the salary cap to determine how much salary you can charge to the grant.
Workday applies your
Salary Over the Cap Type
 worktag to payroll amounts that are either:
  • Over the cap.
  • Not part of the pay component of the salary cap for the associated grant.