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Administrator Guide
Last Updated: 2025-02-07
Create Manual Payments

Create Manual Payments

Review setup considerations for manual payments.
Understand how Workday processes manual payments.
For Payroll for the U.S., to ensure the accuracy of the Political Subdivision (PSD) code for employees in Pennsylvania, verify that the employee contact information contains both the work city and resident city.
Verify bank account information by making sure that:
  • There's at least 1
    Manual
    Payment Method
     configured on the
    Maintain Payment Types
     task.
  • The bank account setup for payroll payments has a
    Manual
    Allowed Payment Type
    .
Security:
Process: Off Cycle (Manual Payment)
 domain in the Core Payroll functional area.
For Payroll for the U.S., to maintain accurate payroll information for employees, you can record payments made outside of Workday Payroll, such as:
  • Third-party payments for sick pay.
  • The exercise of stock options.
For Payroll for Canada, Ireland, and the UK, to maintain accurate payroll information for employees, you can record payments made outside of Workday, such as payments for the exercise of stock options.
Payroll for Ireland only supports manual additional payments.
Workday doesn't prorate manual payments. If a payment is subject to gross-to-net proration, enter a separate payment for each subperiod with the subperiod target date.
You can create manual payments for gross-up earnings, but Workday doesn't calculate a gross up amount.
Workday settles positive manual payments, but doesn't generate an electronic payment for them. Workday doesn't settle:
  • Negative manual payments.
  • Third Party Sick Pay manual payments.
Some off-cycle payment tasks use machine learning prompt recommendations to help you complete the tasks more easily. See Concept: Intelligent Prompt Recommendations for Payroll.
  1. Access the
    Run Manual Payment for Worker
     task.
  2. As you complete the task, consider:
    Option Description
    Third Party Sick Pay (USA)
    Select to record third-party sick pay. Applies to Payroll for the U.S. only.
    Prior Period
    Select to process:
    • An additional payment for a completed prior period.
    • A replacement payment for a prior period or subperiod with no on-cycle results. Example: A period with a canceled on-cycle result (AUS, CAN, FRA, UK, USA).
    You can select any period in the 6 calendar years preceding the current year. Workday determines the current year as the year of
    In Progress
     results or the next period to calculate.
    Worker
    You can't use the
    Run Manual Payment for Worker
     task to add a payment for yourself.
    Existing Payment
    Enter a payment ID and select
    Existing Payment
    to edit a payment that's in progress.
    Create Replacement Payment
    Select to either:
    • Replace a worker's regular on-cycle payment.
    • Pay workers who have no regular on-cycle results for the current period. Examples: Workers with unprocessed timesheets, workers with results reversed in error.
      Payroll for Ireland doesn't support manual replacement payments or payment reversals.
    You can replace worker payments for periods or subperiods that have a status of
    In Progress
     or
    Not Yet Started
    . When you create a manual replacement payment for a pay period, Workday excludes the worker from the regular on-cycle run for that period.
    A worker can only have 1 replacement payment (manual or on-demand) for a period, pay group, and company. If the pay period has subperiods, a worker can have multiple replacement payments per period, but only 1 per subperiod. Only 1 replacement payment can be in progress at a time. Complete the existing payment before running another one.
    Create Additional Payment
    Select to make a payment in addition to the worker's regular on-cycle earnings for the period. A worker can have multiple additional payments.
  3. In the
    Payment Information
     section, consider:
    Option Description
    Batch ID
    Displays when you import payment information using the Enterprise Interface Builder (EIB). You can't create a new batch ID here.
    Reason (USA)
    For third-party sick pay manual payments, select
    Third Party Sick Pay
    .
    Sub-Period Target Date
    For additional or replacement payments, determines the default worktags for the payment.
    When a worker has a midperiod change that causes gross-to-net proration, select a date in the subperiod that the payment applies to. Workday doesn’t prorate manual payments. Create a separate manual payment for each subperiod, if needed, entering the appropriate
    Sub-Period Target Date
    .
    Example for Payroll for Canada and the U.S.: On January 21, Laura's work state changes from New York to New Jersey, creating 2 subperiods:
    • January 15 - January 20.
    • January 21 - January 30.
    To enter an additional payment that applies to work performed in New York, enter January 20.
    Payment Date
    Determines which tax tables apply.
    Workday updates pay accumulation and pay balance results in the period or subperiod that includes the payment date.
    Priority
    Determines the processing order when you add multiple manual payments for the same worker, period or subperiod, and pay group. Enter
    1
     when the worker has 1 manual payment.
    To adjust the priority of multiple manual payments for a worker, access the
    Maintain Off-Cycle Payment Priority
     task.
    Net Amount
    Validates that the input amounts are correct. Must equal the total amount of the earnings and deductions entered in the
    Input
     section.
    Bank Account
    Records the bank account and check number that you can use for bank reconciliation within Workday or externally, when using a separate bank account for manual payroll payments.
    Workday only displays the bank accounts that are related to a worker's primary position.
    For net pay equal to zero, Workday requires you to specify the bank account when you have multiple payment types associated with a manual payment method.
    For additional manual payments where the net pay is less than zero, you don't need to:
    • Specify a bank account or check number for Payroll for Canada and the U.S.
    • Specify a bank account for Payroll for Ireland and the UK.
    Maximum Check Number Used
    Displays the largest check number used to date.
  4. (Optional for Payroll for Canada, Ireland, the UK, and the U.S.) Override Worktags for Manual Payments.
  5. In the
    Input
     section, consider:
    Option Description
    End Date
    For additional and replacement payments. Preset to the
    Sub-period Target Date
     and determines the values (including worktags) to use when calculating the pay component.
    To prorate the pay component, change the
    End Date
     to target the input to the appropriate subperiod. Enter a date between the period start date and the
    Sub-Period Target Date
    .
    For Payroll for the U.S., to make a payment for a biweekly FLSA work period, add a row for each week and enter the
    End Date
     for the corresponding FLSA week.
    To prorate the employee's gross-to-net pay, instead of a pay component, create a separate payment for each subperiod.
    Pay Component
    Lists earnings and deductions that are valid for the worker's pay group and run category.
    Workday automatically calculates statutory employer taxes for manual additional payments. When you enter a tax amount for an employer statutory tax, Workday overrides the calculated amount.
    Pay components can resolve based on the
    Off Cycle (On Demand Additional, Manual)
     tab of your run category, so Workday calculates amounts when either:
    • The manual payment has entries for the calculation that the pay component is using. Example: You configure a pay component to calculate 10% of a pay component related calculation (PCRC). Workday resolves that component only when the PCRC has a manual payment entry. The PCRC can also be from the pay component on the run category configuration.
    • All amounts are contained within the pay component. Example: You configure a pay component to calculate a flat $100.
    Position
    Applies if your Workday tenant allows for multiple jobs.
    Required for position-based pay components. Select a position that is active on the subperiod target date.
    Workday includes the position worktag in journal entry lines.
    For Payroll for the U.S., when adjusting position-based wages and taxes such as OASDI, after an employee changes their position, be sure to select the correct position.
    Worktags
    When using a manual payment to reduce the balance on a worker's flexible payment and deduction, add the worktag of the flexible payment and deduction option.
    Costing Company
    Use to charge this payroll item to a company other than the worker's default company. This column is available if you enable intercompany accounting in your tenant.
    Input Details - Type
    The type of value you want to record, such as
    Amount
    , or a PCRC.
    • For Payroll for Australia, Canada, Ireland, the UK, and the U.S., for earnings and voluntary deductions, select
      Amount
       or any PCRC configured to allow input. Example: If a pay component is defined as
      Amount
       =
      Rate
       x
      Hours
      , select
      Rate
      ,
      Hours,
       and
      Amount
      .
    • For employee statutory taxes for Payroll for Canada and the U.S.:
      • Select
        Amount
         or any PCRC configured to allow input and enter a tax amount.
      • Workday populates amounts for
        Gross Wages
        ,
        Subject Wages
        ,
        Taxable Wages
        , or
        Regular Taxable Wages
        . Select these PCRCs when you want to override the amounts.
      • Consider if you need to add the regular tax PCRC to the manual payment anytime you process regular taxable wages.
    • For employee statutory taxes for Payroll for Ireland and the UK, select
      Amount
       and any PCRCs configured to allow input.
    • For employer statutory taxes, Workday automatically calculates them. You can also override the calculated value (
      Amount
       or PCRC) with a value you enter.
    • For a gross-up earning, select
      Amount
       to define the gross amount. If you select the
      Net Amount (for Gross-Up)
       PCRC, Workday records the net amount for recording purposes. However, Workday doesn't use it for calculations.
    Value
    The pay component amount and the values of the PCRC that make up the amount.
    Workday doesn’t calculate the amount of a pay component from the PCRC values that you enter in this field; it simply reports the values entered.
    Comments
    Explain any selections or values that differ from standard practice.
Recalculate any
In Progress
 on-cycle payments.
Complete the manual payment.