Payroll Costing Allocations

In Workday, payroll costing allocations allow you to direct where payroll is charged (similar to labor distribution in Banner). Payroll costing allocations are required whenever payroll is charged to worktags other than an employee's Default Organization (cost center/fund/program). Examples include:

  • When payroll is to be split between multiple worktags
  • When a designation, gift, grant, or activity is required
  • For temporary allocations due to short-term arrangements (such as grants)

Payroll costing allocations apply to position management, job management, and period activity pay.

Initiators

  • Administrative Support
  • Cost Center Assistant 
  • Cost Center Manager
  • Finance/Budget/Student Employment

Approvers

  • Cost Center Manager
  • Grant Manager
  • Gift Manager
  • Designation Manager
  • Finance/Budget, when applicable

Business Processes

Payroll costing allocations may be designated within these Human Capital Management (HCM) Business Processes:

Default Org Assignment vs. Payroll Costing Allocations

 

Default Org Assignments (Org = organization)

  • Cost Center + Fund + Program worktags
  • Required on every position or period activity pay
  • Automatically populated when employee signs in for completing expense reports
  • Where payroll will post if no costing allocations are in place

 

Payroll Costing Allocations

Position Restriction Costing Allocations (for Position Management positions)

  • When payroll is to be split between multiple worktags
  • When payroll should be charged to a designation, gift, grant, or activity

Worker Position Costing Allocations (for Position Management positions)

  • For temporary allocations due to short-term arrangements (such as grants) 

Worker Position Costing Allocations (for Job Management positions)

  • When payroll is to be split between multiple worktags
  • When payroll should be charged to a designation, gift, grant, or activity

How Workday Determines Where Payroll Will Be Charged

  • First, Workday looks to see if a Worker Position Costing Allocation is in effect.
  • Second, Workday looks to see if a Position Restriction Costing Allocation is in effect.
  • Lastly, Workday will charge payroll to the Default Organization Assignment.


Page last modified March 15, 2024