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Administrator Guide
Last Updated: 2023-06-23
Example: Set Up Pay Run Category for Active and Terminated Workers

Example: Set Up Pay Run Category for Active and Terminated Workers

This example illustrates how to:
  • Only process active and terminated workers in a regular run category.
  • Define a different set of pay components for active workers and terminated workers.
Global Modern Services (GMS) wants to configure a run category to process active workers, and terminated workers that either:
  • Are on salary continuance.
  • Have one-time payroll input.
  • Have a one-time or bonus payment from Workday Compensation.
GMS wants to calculate these pay components for terminated workers on salary continuance:
  • Severance.
  • Noncash taxable benefits.
  • Retirement contributions for workers with more than 1 year of service.
GMS also wants to calculate these pay components with on-demand additional payments:
  • Retirement contributions for terminated workers receiving an on-demand additional payment with a
    Final Check (Severance)
     reason.
  • Retirement and employer match to retirement plans for active workers receiving any type of on-demand additional payment.
  • Define
    Gross
     and
    Net
     pay accumulations.
  • Create these pay components:
    • Retirement Contribution
    • Retirement Employer Match
    • Severance Pay
  • Security:
    Set Up: Payroll - Pay Group Specific
     domain in the Core Payroll functional area.
  1. Access the
    Create Run Category
     task.
  2. In the
    Workers to Process
     section of the
    General
     tab, select these statuses:
    • Active
    • Terminated with Pay Through Date
    • Terminated with One-Time Payroll Input
    • Terminated with One-Time Compensation Payment
  3. In the
    Gross/Net
     section, select these values to define what to calculate for active workers in on-cycle runs:
    Option Description
    Gross Pay Accumulation
    Gross
    Net Pay Accumulation
    Net
    Additional Pay Component Groups to Calculate
    Select these 3 groups:
    • Employer Paid Benefits
    • Non Cash Taxable Benefits
    • Statutory Taxes (ER)
  4. On the
    Nonactive (On Cycle, On Demand Replacement)
     tab, define what to calculate for terminated workers in on-cycle and on-demand replacement payments:
    Pay Component to Calculate
    Pay Component Groups to Calculate
    Status
    Processing Criteria
    Severance Pay
    Non Cash Taxable Benefits
    Terminated
    Worker: Pay Through Date >= Period Start Date
    Retirement Contribution
    Retirement Employer Match
    Terminated
    Worker: Pay Through Date >= Period Start Date
    Seniority > 1 year
    Processing criteria for the retirement pay components are on the same row because workers must meet both conditions (AND conditions). In addition to the selected pay components, Workday automatically processes one-time payroll input and one-time or bonus payments from Workday Compensation.
  5. On the
    Off Cycle (On Demand Additional, Manual)
    tab, define what to calculate for active and terminated workers in on-demand additional payments:
    Pay Component to Calculate
    Type of Run
    Off-Cycle Reasons
    Status
    Retirement Contribution
    On Demand
    Final Check (Severance)
    Terminated
    Retirement Contribution
    Retirement Employer Match
    On Demand
    Active
Workday processes these workers in the monthly on-cycle payroll for March:
  • Charles, terminated on February 28 whose pay through date is March 31. Charles receives severance pay if he's eligible for it, but not base pay.
  • Mike, terminated on March 5 whose pay through date is April 15. Workday considers Mike an active worker for March and creates 2 subperiods with separate gross-to-net amounts:
    • March 1 - 5: Prorated salary for the days Mike is active.
    • March 6 - 31: Base pay, noncash taxable benefits, retirement contribution, and employer match to retirement plan for the days after his termination.
  • Daniel, terminated on March 5 whose pay through date is March 10. Workday prorates his salary for the March 1-5 subperiod. You need to enter payroll input to pay the March 6 - 10 subperiod.
Susan is on a leave of absence from March 1 through April 15. Workday doesn't process her because she doesn't meet the selection criteria on the
General
 tab.