New suballoaction validation for Salary Over the Cap workers

HHS awards are subject a salary cap, including subawards from other institutions. A Workday alert will now occur when submitting a Costing Allocation for workers paid on an HHS grant, in the instance program, gift, or project worktags are not entered in the Salary Over the Cap suballocation, indicating where Over the Cap (OTC) salary amounts are to be paid.

This validation has been added to help prevent the need for Payroll Accounting Adjustments (PAAs) following the incorrect charge of Over the Cap amounts to a worker’s default organizational assignments, due to suballocations not being updated.

Please note that it may be necessary to update current and past Costing Allocation suballocations for salary capped workers that include June 2024 pay periods and forward. The June 2024 pay period aligns with future retroactive payroll updates currently planned to go live July 2025. Any suballocations prior to June 2024 – to present do not require updates.

Please note that it is only required to enter this information for workers whose Institutional Base Salary (IBS) rate exceeds the current HHS salary cap. If the worker’s IBS rate does not exceed the HHS salary cap, there is no need to enter any worktags in the SOC suballocation.

If a worktag indicating where OTC salaries are to be paid is not entered, the system will charge it to the worker’s Default Organizational Assignments. Please review the Salary Over the Cap Addendum in the Assign Costing Allocation reference guide for complete instructions for completing the SOC suballocation.

Questions? Reach out at the Workday Service Desk.