Ace the 2026 Workday Pro Payroll Challenge – Payday Perfection Awaits!

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Does Workday support payroll processing for tips?

Not supported

Only in certain regions

Yes

Tips are treated as part of an employee’s earnings in Workday payroll. You can capture tips through a dedicated tip earnings type or tip pools and include those tip amounts in the employee’s gross pay. Workday then applies the usual withholding and payroll taxes to the tips and shows the amounts on pay slips and in tax reporting. This enables accurate calculation and compliant reporting of tip income within payroll. Regional rules can influence how tips are managed, but the capability to process tips within Workday payroll is supported.