An Update on Payroll Accounting Adjustments

The Payroll team has begun work on Payroll Accounting Adjustments (PAAs) for May, 2021. Please note that PAAs are currently two months behind in processing (and that there are currently 6,100+ PAAS to be processed on a monthly basis).

At this time, Payroll Accounting Journals (PAJs) should not be processed for PAAs. However, if you have no option but to process a PAJ while waiting for a PAA, please note that the PAJ must be reversed when the subsequent PAA is processed.

Why a Payroll Accounting Adjustment, and not a Payroll Accounting Journal?

A PAA is required each time an end user submits or updates a record in Workday related to an employee’s retroactive costing allocation. A PAA redirects the employee’s salary and benefit costs to the correct worktags. Unlike a PAJ, a PAA cannot be duplicated and includes benefits costs.

A report is available each pay period in Workday  (one salary, one hourly) that extracts the worker costing allocations that have been submitted in the previous pay period. Then a Payroll team member references that data to create a PAA record in Workday.

Some challenges we’re currently seeing include:

• Some records need to be split between multiple worktags (multiple data entries required per record)
• Some records need prorating at the start of a pay period or the end of a pay period (manual calculation of prorated %, multiple data entries per record)
• Hourly workers require an averaging of hours worked (review of employee hours worked, manual calculation)
• Workday doesn’t support automation of this manual process, and we continue to look for opportunities to automate wherever possible
• Records are captured in the PAA export file from Workday that do not require a PAA (i.e. no pay, no change, etc., and wasted effort)

We thank you for your support as we continue to tackle PAA volumes.