The fringe expense for Federal Work Study (FWS) overflow earnings was not configured in Workday to apply the 2% fringe rate since the rate was implemented. As a result, the 2% fringe rate was not being calculated on the earnings exceeding their award amount. Moving forward, the 2% fringe expense will be applied only to the portion of earnings that exceed the FWS award amount. These expenses will be charged to the default organizational assignments Worktags. Note: This will not impact FD725-Federal Work Study.
Effective pay period beginning 02/28/2025, the Workday Enterprise System (WES) team will implement the 2% fringe rate for the Workstudy Overflow pay component. This update ensures that any earnings exceeding a student’s FWS award will have the correct fringe expense applied in future pay periods. There will be no retroactive charges for prior fiscal years or any FY2025 pay periods before this effective date.
This information is also available via a Workday Knowledge Article located here.
If you have any questions, submit a Workday Help case with a case type Finance/Budget.