New in Workday – Payroll Forward Accrual now to include fringe expense

October 23, 2019

The Payroll Forward Accrual estimates payments through the end of a financial reporting period. This only occurs when the pay period spans multiple financial periods. The accrual books estimated expenses through the current month and reverses it on the first day of the subsequent month. Until recently, the accrual did not include the fringe expense. Beginning with the October FY2020 month-end, the fringe benefit expense will be calculated and booked in Workday as part of the accrual.

The following pay components are included in the Payroll Forward Accrual:

  • Time Entry Wage
  • Employer Paid Taxes
  • Employer Paid Benefits

Through September FY2020, fringe benefit expense was not calculated on any piece of the Payroll Forward Accrual. This was a “gap” in the desired Workday functionality, as fringe benefit expense was calculated on the payroll accrual in Oracle. Workday has delivered new functionality in response to our requirements. On transaction detail and other financial reports, users see the activity on a single journal source called “Payroll Forward Accrual”.

Beginning with October FY2020, the system will calculate fringe benefit expense for the Time Entry Wage pay component only. On transaction detail and other financial reports, users will see activity on two separate journal sources – “Payroll Forward Accrual” and “Fringe Benefit Forward Accrual”. The expense will appear on the same ledger account as actual fringe benefit expense – 91001 (Allocation Expense - Fringe Benefits) with spend category SC074 “Allocation Expense - Fringe Benefits”.

Reporting Impact

DataMart reporting has been updated for this change. Workday reporting is still being assessed; however, widely-used reports like Detailed Transactions, Financial Transactions, and most SOA reports are not expected to be affected. Users experiencing reporting issues should please email sharedservices@yale.edu for assistance. Users can also find reporting updates and fixes in process on the Workday Reporting Updates website.

Example

In this example, the clerical and technical worker received Time Entry Wage and was charged to University funds.

Payroll Forward Accrual with no Fringe  -  (Accruing for 3 Days)

Payroll Forward Accrual with Fringe Benefit -  (Accruing for 3 Days)

Total Payroll Forward Accrual

Time Entry Wage Portion

Fringe %

Fringe Benefit

Total Payroll Forward Accrual

Time Entry Wage Portion

Fringe %

Fringe Benefit Forward Accrual

$787.56

$584.98

75.30%

0.00

$787.56

$584.98

75.30%

$440.49

$507.67

$471.60

  8.70%

0.00

$507.67

$471.60

  8.70%

$  41.03

Any questions, please contact the Financial Support Services at sharedservices@yale.edu or at 203 432-5552.