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Administrator Guide
Last Updated: 2024-01-12
Set Up Tax Authorities

Set Up Tax Authorities

Security:
Set Up: Tax
 domain in the Common Financial Management functional area.
You can create tax authorities for the jurisdictions where you pay or report on taxes. Example: New York State Department of Taxation and Finance.
Tax authorities drive the tax reporting currency of your tax rates.
Workday creates tax declarations at the tax authority level. To ensure the completeness of tax declarations you create in Workday, we recommend that:
  • For countries with only 1 tax jurisdiction, you create only 1 tax authority. Example: The United Kingdom.
  • When using a third-party tax integration to calculate tax on either customer or supplier invoices, and Workday on the other type of taxable documents, you use the same tax authority for both.
When you want to pay tax authorities with supplier invoices, create tax authorities from existing business entities and select suppliers.
  1. Access the
    Create Tax Authority
     task.
  2. As you complete the task, consider:
    Option Description
    Create Tax Authority from Business Entity
    Select a business entity for Workday to add tax authority details to. Once you select a business entity, you can't change it.
    Tax Reporting Currency
    Select the currency to calculate and report taxes for the tax authority. Example: Your company currency is USD, but you report taxes for your European headquarters in EUR. You select EUR.
    You can't change the reporting currency after you create a tax rate for the tax authority.
    Rounding Definition
    Select or create a rounding definition for Workday to round tax amounts:
    • In tax reporting currency for tax reports and tax declarations.
    • In company currency for posting to ledger accounts, when the company currency is the same as the tax reporting currency.
    • In transaction currency for display on taxable documents, when the transaction currency is the same as the tax reporting currency.
    When you don't select a rounding definition, Workday rounds the tax amounts to the nearest currency precision. Example: Workday rounds amounts in EUR to the nearest 2 decimals.
You can:
  • Access the
    Update Tax Authority Logo
     task to upload a logo for this tax authority.
  • Access the
    Create Tax Declaration Run
     task to report taxes to a tax authority.
  • Create supplier invoices or ad hoc payments to pay the tax authority.