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Administrator Guide
Last Updated: 2023-06-23
Example: Set Up Pay Run Category for Workers on Leave (FRA)

Example: Set Up Pay Run Category for Workers on Leave (FRA)

This example illustrates how to:
  • Set up a negative net pay advance for workers who are on unpaid leave, but still subject to deductions.
  • Use payroll inputs for one-time bonuses for workers on leave.
You want to set up payroll calculations for workers on parental leave.
Workers on parental leave are unpaid, but are subject to these pay deductions:
  • Monthly premium payments for health insurance coverage that continues during their leave.
  • Taxes on contingency payments.
  • Ongoing debts, or advance repayments.
Workers on parental leave are also eligible for bonuses paid during their leave.
During their leave, workers have a net salary of zero, and will owe Global Modern Services any unpaid amounts upon their return to work.
To pay health insurance premiums, Global Modern Services deducts 100 EUR per month from worker net pay. The
Health insurance premium
 deduction is associated with the
FRA Statutory Taxes EE - Deductible from Tax [FRA]
 pay component group.
Workday provides these pay components to avoid having a negative net salary for workers on leave:
Pay Component
Use
Deduction:
Repayment of Previous Negative Net Salary [FRA]
 in the
FRA Subtracts from Net
 pay component group.
Deducts the negative net pay advance from the net salary when a worker returns to work.
Earning:
Negative Net Pay Advance [FRA]
 in the
FRA Adds to Net [FRA]
 pay component group.
Creates an advance when the net pay is negative.
Security:
Set Up: Payroll - Pay Group Specific
 domain in Core Payroll functional area.
  2. On the
    Nonactive (On Cycle, On Demand Replacement)
     tab, enter these values:
    Pay Components to Calculate
    Pay Component Groups to Calculate
    Status
    • IJSS Gross [FRA]
    • Memo - Reference Values for IJSS [FRA]
    • TAX Withholding Tax [FRA]
    • FRA Adds to Net [FRA]
    • FRA Statutory Taxes EE - Deductible from Tax [FRA]
    • FRA Statutory Taxes EE - Deductible from Tax - Excluded from Gross Up [FRA]
    • FRA Employer Taxes Provision [FRA]
    • FRA Statutory Taxes EE - Submitted to Tax [FRA]
    • FRA Statutory Taxes ER [FRA]
    • FRA Subtracts from Net [FRA]
    On Leave
    For workers on leave, Global Modern Services uses one-time payroll inputs to enter any additional gross pay. Workday processes one-time payroll inputs that belong to the gross or net accumulation on the
    General
     tab.
  3. On the
    Off Cycle (On Demand Additional, Manual)
     tab, enter these values:
    Pay Components to Calculate
    Pay Component Groups to Calculate
    Type of Run
    Status
    TAX Withholding Tax [FRA]
    • FRA Adds to Net [FRA]
    • FRA Employer Taxes Provision [FRA]
    • FRA Statutory Taxes EE - Deductible from Tax [FRA]
    • FRA Statutory Taxes EE - Deductible from Tax - Excluded from Gross Up [FRA]
    • FRA Statutory Taxes EE - Submitted to Tax [FRA]
    • FRA Statutory Taxes ER [FRA]
    • FRA Subtracts from Net [FRA]
    On Demand Payment
    On Leave
  4. Click
    OK
     and
    Done
    .
Marie is on unpaid parental leave for the entire month of February. During her leave of absence, she has a salary of zero. Marie will owe Global Modern Services the monthly premiums when she returns to work in March. Workday calculates:
Pay Period
Results
February (unpaid parental leave)
  • Net Pay: 0 EUR
  • Negative Net Pay Advance: 109.7 EUR, representing health insurance premiums plus statutory taxes.
March (return to work)
Net salary minus the repayment of 109.7 EUR.
Steve is also on unpaid parental leave for the month of February. He receives a 1000 EUR bonus using a one-time pay input. During his leave of absence, Workday calculates:
Pay Period
Results
February
Net Pay: Bonus amount minus premium payments and statutory taxes.