Create Frequencies

Security: Set Up: Compensation General
domain in the Core Compensation functional area.

You can maintain existing or create new frequencies for compensation and payroll calculations. Frequencies determine the number of occurrences (or units) in a year that Workday uses to calculate annual compensation.

Workday delivers a set of frequency types, including Hourly
and Semi-Monthly
. Each frequency requires an

Annualization Factor

that is greater than zero and specifies the number of occurrences in a year. Some frequencies, such as Bi-weekly
and Semi-monthly
, match pay cycles while other frequencies, including Hourly
and Annual
, don't. Examples:

Annual
: 1 time in a year.

Bi-weekly
: Every 2 weeks or 26 times in a year.

Semi-monthly
: 2 times every month or 24 times in a year.

You can modify these or add your own as needed. If the standard number of working hours differs by location, you can create a different hourly frequency for each location.

Access the

Maintain Frequencies

task.

As you complete the task, consider:

Option	Bezeichnung
Annualization Factor	The number of units (occurrences) in a year. Workday uses the annualization factor to calculate annual compensation. You can enter up to 6 decimal places. The default annualization factor for Hourly is 2080, which equals the number of work hours in a year in the USA (40 hours each week * 52 weeks). Other locations might have different annualization factors for Hourly . Examples: 1664 (32 hours each week * 52 weeks). 1920 (40 hours each week * 48 weeks).
Use Weekly Hours	For Hourly frequency types. If selected, Workday uses the scheduled hours each week when calculating annual pay. Using weekly hours affects how Workday evaluates grade range penetration for an hourly worker, which is based on the annual equivalent of hourly pay. If cleared, Workday calculates the annual equivalent. If you use Workday Payroll, select this check box as a best practice for hourly workers. If you clear Use Weekly Hours , Workday might treat part-time, hourly workers as full-time. Example: For Commitments and Obligations, Workday might create commitments for part-time, hourly workers.
Used in Payroll Interface	Select the check box to make a frequency definition available for use in positions, earnings, and deductions that you set up for external payroll.

Example:

You schedule a worker to work 20 hours each week at 10 USD an hour. If you:

Select

Use Weekly Hours

, Workday calculates the annual equivalent by multiplying hourly pay (10) by the scheduled weekly hours for the worker (20), then by the Weekly

Annualization Factor

(52):

10 USD * 20 hours * 52 weeks = 10,400.00 USD annual equivalent

Clear

Use Weekly Hours

, Workday multiplies hourly pay (10) by the Hourly

Annualization Factor

(2080):

10 USD * 2080 hours = 20,800.00 USD

Workday treats the worker as full-time instead of part time.