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Ohio State University Extension


Why Does It Appear There is Payroll Activity in Funds From Which No One is Paid?

March 23, 2023

For every employee there are three levels of worktags associated with them and their position. First the Organizational Assignment, then the Position costing, then the Worker costing. The Worker Costing is typically where actual payroll hits (however, if a worker costing allocation isn't done, payroll actuals will hit the Position costing). Organization Assignments have some worktags restricted from use at this high level (grants and gifts for example). Therefore, we need to use some other funding source at this level. For county offices, this is often FD100 or FD111.
Sometimes all these worktags are the same at all levels, but if someone has a grant or gift line on their worker or position costing, their payroll liability and accruals will hit the organizational default. This is just the way Workday accounts for these items. Again, these are not actual expenses and will net to zero eventually, though most accounting periods have an overlap that leaves a small debit or credit amount in these ledgers period over period.
So the important ledger accounts to pay attention to are the salary and fringe actuals in the 5xxxx series ledger (for payroll actuals, not “forward accruals”). These would be the actual payroll expenses related to worker salary and fringe. The 2xxxxx series ledger accounts for liabilities in payroll and forward accruals in 5xxxxx ledgers will eventually net to zero.