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Administrator Guide
Last Updated: 2023-08-11
FAQ: Processing Payroll Adjustments for Year-End (CAN)

FAQ: Processing Payroll Adjustments for Year-End (CAN)

How can I make year-end adjustments?
Workday provides multiple options for year-end adjustments. We provide these options as examples. We recommend you choose the method that works best for your organization. We recommend that best practice is to process adjustments in your Sandbox tenant. Use year-end preview reports, like
T4 Preview
, to confirm that processed adjustments calculate and report as expected before you create year-end data.
  • Use the
    Run Manual Payment for Worker
     task to report specific wages and statutory deductions.
    Example: You want to report a stock option that exercised after the last on-cycle payroll of the year. The stock vendor provided the withheld taxes to report. Select
    Prior Period
     and choose a pay period that was in the prior tax year (like December 16-31, 2022) to allocate the adjustment. Select a
    Reason
     for the adjustment. If desired, use the
    Create Payroll Action Reason
     task to assign a specific reason code to report on later. Ensure that the
    Payment Date
     is within the tax year (Dec 31, 2022).
  • Use the
    Run On Demand Payment for Worker
     to make adjustments where Workday will automatically calculate the gross to net. This includes employer paid taxes, such as Workers Compensation, Employer Health Tax, and so on.
    Example: You want to report a taxable benefit like a gift card a worker received or personal car usage. The taxable benefit occurs after the last on-cycle payroll for the year processes. Select
    Prior Period
     and choose a pay period that was in the prior tax year (Dec 16-31, 2022) to allocate the adjustment. Select a
    Reason
     for the adjustment. If desired, use the
    Create Payroll Action Reason
     task to assign a specific reason code to report on later. Ensure that the
    Payment Date
     is within the tax year (Dec 31, 2022).
Making these types of year-end adjustments generates an off-cycle payroll that you need to run and complete. You can then create the necessary accounting files for this run as you would for any other off-cycle payroll processed throughout the year.
When do I make adjustments to year-end data using the year-end corrections process?
When:
  • You created year-end data.
  • You sent the integration (XML) file.
  • CRA or Revenu Quebec successfully received it.
How do I correct pay results reported in the wrong province of employment for a worker?
Override the Province Authority (Work) using the
Override Worktags
 section of either the
Run On Demand Payment for Worker
 or the
Run Manual Payment for Worker
 task.
Select the correct province in the
Province Authority (Work)
prompt if it's different than what the
Reference Worktags
 section reports.
You need to make the entry twice. Enter once to remove the previous value by entering a negative value for the incorrect province. Enter a second time to add the new value to the correct province.
Update the pay component related calculations (PCRCs) (like Subject Wages) in addition to the amounts when you do a manual payment for the worker.
How do I correct pay results reported in the wrong reference number?
Use the
Override Worktags
 section of the
Run Manual Payment for Worker
 task. Select the
Company
 and correct the reference number in the
Payroll Reference Number
 prompt.
You need to make the entry twice. Enter once to remove the previous value by entering a negative value for the incorrect reference number. Make the entry a second time to add the new value to the correct reference number.
Update the pay component related calculations (PCRCs) (like Subject Wages) in addition to the amounts when you do a manual payment for the worker.