Summary
This article explains how compensation is structured in Workday and how different pay components are used to ensure employees are paid correctly. You should use this guide if you need to understand how base pay, allowances, one-time payments, and period activity pay work across different employee roles.
Body
Quick Reference Guide
Objective or Task
Understand how Workday uses different compensation components to pay employees based on job type, duties, and duration of work.
Before You Begin
- You have access to Workday.
- You are responsible for hiring, managing, or supporting employees, or you need to understand how compensation is applied.
- You understand that employees may have one or more jobs or compensation components.
Instructions
Identify the Primary Pay Component
- Review the employee’s job type and employment classification.
- Identify the applicable Base Pay Plan.
- Use a Salary Plan for exempt staff employees paid monthly.
- Use an Hourly Plan for non-exempt staff paid biweekly based on hours worked.
- Use an Academic Salary Plan for faculty paid monthly, regardless of annual work or disbursement period length.
Apply Allowance Plans When Needed
- Determine whether the employee has ongoing additional responsibilities.
- Assign an Allowance Plan when supplemental recurring pay is required.
- Use allowance plans for interim duties, tenure supplements, or non-taxable stipends.
- Set an Actual End Date to stop allowance payments when appropriate.
- Use Expected End Dates only for reporting purposes.
Use One-Time Payments for Non-Recurring Compensation
- Identify situations requiring non-recurring compensation.
- Assign a One-Time Payment Plan for bonuses, awards, or special assignments.
- Enter the payment amount and ensure it is processed as a lump sum.
Assign Period Activity Pay for Academic and Short-Term Work
- Use Period Activity Pay for instructional, stipend, or overload assignments.
- Assign the appropriate rate based on credit hours, instructional effort, or academic period.
- Confirm the payment schedule aligns with the length of the assignment.
Determine When an Additional Job Is Required
- Review whether the additional work involves a change in duties, supervisor, or supervisory organization.
- Create an Additional Job when the work is distinct from the primary role.
- Use allowance plans or period activity pay to compensate the additional job as appropriate.
- Adjust FTE when duties change under the same role and organization instead of creating an additional job.
Review Common Population Scenarios
- Apply Hourly Plans for student workers and non-exempt roles.
- Use Period Activity Pay for graduate assistants and part-time lecturers.
- Combine Base Pay, Allowances, and One-Time Payments for staff or faculty with additional duties or recognition.
- Ensure academic overloads follow rules for additional jobs versus FTE changes based on departmental alignment.
Outcome
Employees are paid accurately in Workday using the correct combination of base pay, allowances, one-time payments, and period activity pay based on their role and work performed.