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Managing Off-Cycle Payments

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Off-cycle payments are payments processed in Workday outside of the regularly scheduled, on-cycle pay run for the Worker.

The purpose of this guide is to provide an overview of the various types of off-cycle payments that are possible in Workday and the process used to complete those payments.

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Important Information

Off-Cycle Payments Types

  • Manual: records payments in Workday made to employees outside of Workday Payroll or moves taxable wages and balances. No actual payment is made in Workday. This is purely for accounting purposes and tax reporting
  • On Demand: replaces an existing payment or issues an additional payment to a worker’s on-cycle payments
  • Reversal: removes or voids a completed pay calculation for a worker

Manual and On-Demand Payment Types

  • Replacement Payment: replaces existing payment for Employee for same pay cycle
  • Additional Payment: creates a payment in addition to Employee’s existing payroll for same pay cycle

Processing Sequence for Off-Cycle Payments

  1. Manual payments
  2. Reversals
  3. On-Demand payments
  4. On-Cycle payments

Note: An Employee can have more than one type of payment being processed on the same pay date

Rules for Off-Cycle Payments

  • Employees can have multiple off-cycle payments for the same pay period and pay group; however, only one Manual Payment and one On Demand payment can have a status of In Progress
  • Only one replacement payment (Manual or On Demand) can exist for the period and Pay Group
  • Off-Cycle payments must be calculated and completed one at a time
  • Off-Cycle payments for a period that have a status of In Progress or Not Yet Started must be completed before on cycle calculations for the same period
  • Off-Cycle payments for the same period and pay group must have different priorities for completion (e.g. 1,2,3)
  • Settlement of off-cycle payments must be completed separately from the settlement of on-cycle transactions

Getting Started

Completing Manual Payments

Navigate to the Employee’s Worker profile and then begin.

Initiate Run Manual Payment

  1. Select the Action button and then select Payroll > Run Manual Payment. Note: Manual Payments never produce a payment; they only record a payment.Worker profile with action button selected and Run Manual Payment option highlighted
  2. Verify the default field entries are acceptable or make adjustments as needed. Select Payment Type and then OK.Run Manual Payment for Worker screen with defaulted entries for Period, Pay Group Detail and Worker. The radio button for Create Additional Payment is selected.

For this example, Payroll needs to record the March payment to the Worker that was paid through Accounts Payable; therefore, we change the defaults on the Run Manual Payment.

  1. Fill in the required fields as described here
    • Sub-Period Target Date. Determines the default worktags and defines the partial pay periods.
    • Payment Date. Off-Cycle payment process on a biweekly pay date; determines which tax tables apply.
    • Priority. Prioritizes the Payment.
    • Check Number. Enter a letter before the Check Number.
  1. Expand the Reference and Override Worktags if any overrides are required.  Any overrides would be done within the Override Worktags areas.Reference Worktags and Override Worktags

Reference Worktags serve as a reference to the defaults currently in place

  1. Specify the payment component, apply necessary Worktags, identify the Type (such as amounts and hours) and Value (quantity of type to be paid) under Input Details. Note: Each entry must be manually entered including any employer contribution amounts. Select OK when finishedinput section

View Background Process

After selecting OK, the system automatically runs the Pay Calculation and Workday Operations can complete the payment.Example of background process

Completing On-Demand Payments

First navigate to the Worker profile for the Employee and begin.

Initiate

  1. Select Payroll > Run On Demand Payment task.
  2. Verify the defaulted information within the fields are accurate or edit as needed. Select the Payment Type and then OK.Run On Demand Payment for worker page with defaulted information

On Demand Payments can be recorded as either an additional or replacement payment. They produce a payment by way of either direct deposit or check.

  1. Fill in the following fields:
    • Reason
    • Sub-Target Date
    • Payment Date
    • PriorityPayroll On Demand Pay Calculation screen

Take Additional Tax Withholding Amounts

This applies to Additional Payments in regular runs.

  • Workday always takes additional federal withholding (according to the Worker’s instructions on the W-4) from the first payment of the period, whether the payment is on-cycle or off-cycle
  • To have the additional federal amount also taken from a subsequent on-demand payment, select the corresponding check box
  • For State Withholding, Workday takes the additional amount from each on-cycle and off-cycle payment, regardless of whether or not the box is selected
  1. Expand the Reference and Override Worktags if any overrides are required. Any overrides would be done within the Override Worktags areas. The Reference Worktags serve as a reference to the defaults currently in place.Reference and Override Worktags
  2. Specify the Pay Component, apply necessary Worktags, identify the Type (such as amounts and hours) and Value (quantity of type to be paid) under Input Details. Select OK.Retro results

Once you click OK, the system automatically runs the Off-Cycle Pay Calculation and Workday Services can complete the payment.Pay groupings

Completing Reversals

Payroll reversals are Off-Cycle calculations that reverse a completed pay calculation. For detailed information on payroll reversals in FAMIS, locate the Payroll Reversals in FAMIS reference guide on Workday Help.

  • A reversal will zero out or void previously completed pay results. All previous positive entries will show as negative and vice versa.
  • Prior calendar/tax year reversals should use a Reversal Date of 12/31 of the prior year. This will ensure that the prior year reversal will impact the correct W-2.
  • Current calendar/tax year reversals should use a Reversal Date that is the same calendar year as the original pay date.
  • BE ADVISED: This process does not retrieve funds from the Employee or reverse an ACH bank transfer. Please work with your accounting staff to recover funds from the Employee and make the appropriate accounting entries.

Initiate

  1. Navigate to the Employee’s Worker profile and select the Pay link. From the Results tab, locate the pay result you need to reverse and select the Related Actions icon.
  2. Select Pay Calculation > Reversal.
  3. Enter the required information
    • Reporting Period. Same as original pay period
    • Reporting Pay Group Detail. Select the Employee’s Pay Group
    • Reversal Date. Select the next biweekly pay date for current year reversals
    • Action Reason. Reason for reversing the pay calculationReversal information page
  4. Click OK and Done.

The pay reversal is now in progress. During the next biweekly payroll processing, Workday Services will finalize and complete the pay results

Edit or Cancel Off-Cycle Payments

Navigate to the Employee’s Off-Cycle payment within their Worker profile

Initiate

  1. Locate the payment by navigating to the Pay Results for the Worker located on their Worker profile.
  2. From the Related Action icon, select Pay Calculation > Cancel. Then select Cancel or Update Input/Recalculate. When selecting to Update Input/Recalculate, you will return to the initial editing screen for any changes that may be needed.
  3. Select OK.Update or Cancel Off-Cycle payment

 

Confirm

Select OK to confirm your changes. You will receive a message on the screen that says the task was completed successfully

Using Reports

Pay Calculation Off-Cycle Inputs for Group of Workers report to view the payroll input, details, for the off-cycle payment.  After calculation, you can view off-cycle payments under the Worker’s pay result.Pay Calculation Report

The Off-Cycle Payment Priority can be maintained from the related action icon on the report for the payment or by using the Maintain Off-Cycle Payment Priority task.

The Payment Priority can be changed on the next screen, enter the number in the grid:Maintain Off Cycle Priority