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  • Manager - Payroll Terminology

     
     Term  Definition
    Additional Payment An off-cycle payment made in addition to a worker’s scheduled on-cycle payment. You can process additional payments as part of a manual payment or on-demand payment.
    Balance Period The period of time, such as current period, month-to-date, quarter-to-quarter, or year-to-date, over which Workday calculates a pay component value.
    Compensation Element Smallest unit of compensation for a worker in a specific position. Workday uses compensation elements to determine the amount, currency, frequency, and other attributes of a worker’s compensation.
    Ex. Base salary, bonus, benefits, commissions, allowances, etc.

    Manual Payment An off-cycle calculation that records check or cash payments made outside Workday Payroll.
    Off Cycle A payment, such as a manual payment or on-demand payment, made outside the regularly scheduled payroll run. Reversals and history payments are also classified as off cycle. Off-cycle manual and on-demand payments enable you to issue additional or replacement payments.
    On Cycle A scheduled payroll run.
    On Demand Payment An off-cycle payment that replaces, or is issued in addition to, a worker’s on-cycle pay.
    Pay Component An earning (such as base salary or bonus) or deduction (such as federal withholding taxes or medical) that applies to a worker’s gross-to-net pay calculation or tax liability.
    Pay Component Group A collection or combination of related earnings, deductions, or pay component-related calculations that are combined to simplify payroll calculations.
    Ex. Employer-Paid Benefits, Pre-Tax Deductions and Federal Taxable Wages.
    Pay Group A group of workers defined to have their pay calculated and processed together.
    Proration Creates sub-periods when there is a change in the worker’s compensation mid-period. It can be based on calendar days or days worked (work shift).
    Replacement Payment An off-cycle payment that replaces a worker’s on-cycle payment in a period that is in progress or not yet started.