Commitment Accounting

Employee-related expense reporting

Commitment Accounting performs payroll accounting functions within Financial Services. It oversees the resulting Workday journal entries generated from the payroll process.

When a department overpays an employee, Commitment Accounting works with the employee to recollect excess wages on the university’s behalf. Commitment Accounting completes all remittances and reporting related to payroll, retirement and benefit deductions, and payroll taxes — federal, state and local.

Commitment Accounting also compiles W-2 forms at year-end, administers taxes for employees living or working outside of Arizona, participates in Workday system testing, and assesses the taxation of the graduate-level tuition waiver.

Email Commitment Accounting with questions.

ERE rates

Employee-related expenses are ASU’s cost for benefits provided to employees as part of their total compensation package at the university. These include workers’ compensation insurance, unemployment insurance, and the employer’s portion of Social Security taxes, retirement plan contributions, health/dental insurance and life/disability insurance.

ERE is budgeted and charged to departmental Worktags based on rates determined by the ASU Office of Planning and Budget. Departments do not incur the actual benefit cost. Each job category in Workday is assigned an ERE rate, which is applied to an employee’s gross pay to determine ERE expense. ERE charges per employee are capped on a fiscal year basis when gross income exceeds $400,000. However, Workday does not systematically cap these charges; the central accounting team manually adjusts them before the fiscal year-end. Refer to the table below for fiscal year ERE rates in Workday.

 FacultyStaffNon-benefits eligibleStudents, excluding RA/TARA/TAPost-doctoral
 FacAdmAppt and FacultyAcademicProf, Admin, ACPRFAdmAPCan include all faculty, staff and post-doctoralStudents and graduate service assistantsGraduate students under RA/TA job codesPostDoc
Workday ERE ledger7112SC02327113SC02367117SC02337116SC02377115SC02357114SC0234
FY 2026 rate30.60%35.50%11.10%1.90%7.40%22.30%
FY 2025 rate30.40%36.80%10.90%1.20%8.50%25.30%
FY 2024 rate27.10%34.20%10.20%1.60%11.50%21.70%
FY 2023 rate25.60%34%10.60%2%10.70%21.40%
FY 2022 rate26.50%32.60%10.10%1.70%10.20%22.10%
FY 2021 rate26.30%33%9.40%1.50%10%21%
FY 2020 rate27.30%36.70%9.40%1.10%7.10%22.70%

 

A job category is assigned to each position and job. For employees with multiple active positions, each job is separately charged the applicable ERE rate per the assigned job category of the respective position. 

Non-benefits eligible employees, excluding students and graduate students, are charged a specific ERE rate. Faculty, staff, and post-docs can be subject to the non-benefit ERE rate based on their employee type and the total scheduled weekly hours assigned in Workday. Non-benefit eligible employees are defined for ERE purposes as those whose position is not a regular or regular fixed term employee type, and/or their combined total scheduled weekly hours for all jobs are less than 20 hours. 

The job category, employee type, and scheduled weekly hours can be viewed by clicking on the position or job hyperlink on the employee profile in Workday.

General operating programs are assessed ERE. Departments are not allowed to move the general operating ERE budget to personal services or operations appropriation units. Earnings codes for non-ERE listings include:

Non-ERE listings
Adoption Subsidy — ASBAward/Prize Grossed Up — AWP-GUAward/Prize — AWPAward/Prize Regular Student — AWP-STUBones: Discrentionary Grossed Up — BNS-GU
Bonus: Discretionary Normal —BNSBonus: Discretionary Normal Student — BNS-STUBonus: Nondiscretionary  Normal — BNNBonus: Nondiscretionary Normal Student — BNN-STUBonus: Nondiscretionary Grossed Up — BNN-STU
California Meal Penalty — CMPCancer Subsidy — CSBCar Allowance — CARDanger Pay Allowance — DPADistributed Excess ASRS — ASR
Educational Bonus: PD — EDB-PDGraduate California Meal Penalty — CMPGHealth Incentive Program — HIPHonorarium — HNRHousing Allowance Grossed Up — HSG-GU
Housing Allowance Normal — HSGLongevity Bonus: PD — LTBMeal Penalty — MPNReferral — REFSame Day Meal — SDM
Signing Bonus — SIBStudent California Meal Penalty — CMPSStudent Meal Penalty — MPNSTaxable Fringe Benefit Grossed Up — TFB-GUTech Subsidy Non-Taxable — TSN
Technical Subsidy — TECUnpaid Time — UPT 
 

 

Payroll accounting adjustment transactions will automatically transfer the corresponding ERE expense for the selected pay period in equal proportion to the amount of earnings moved.

Vacation and compensatory payouts are centrally funded. The ERE rate includes a component to fund vacation payouts.

ERE posts under the Fringe Benefit and Fringe Benefit Actual Adjustment journal sources, under the following ledgers and spend categories:

LedgerSpend category
7112: Employee-related expenses — facultySC0232 ERE rate — faculty
7113: Employee-related expenses — staffSC0236 ERE rate — staff
7114: Employee-related expenses — post-doctoral scholarSC0234 ERE rate — post-doctoral scholar
7115: Employee-related expenses — RA/TASC0235 ERE rate — RA/TA
7116: Employee-related expenses — studentSC0237 ERE rate — student
7117: Employee-related expenses — otherSC0233 ERE rate — non-benefit

 

The referenced journal sources, ledgers and spend categories can be used as filters for ERE reporting purposes when querying Workday Departmental Reports and the Financial Data Warehouse, Amazon Redshift.

For any ERE-related questions, contact your Financial Services accountant or your Grant and Contract Officer for inquiries specific to sponsored grants.