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Administrator Guide
Last Updated: 2023-06-23
Set Up Transaction Tax Rates

Set Up Transaction Tax Rates

Security:
Set Up: Tax
 domain in the Common Financial Management functional area.
You can configure the individual transaction tax rates that your tax authorities assess. Examples:
  • State of California (7.25%).
  • County of Los Angeles (0.25%).
  • Central City of Los Angeles (1.5%).
  1. Access the
    Create Transaction Tax Rate
     task.
  2. As you complete the task, consider:
    Option Description
    Subject to Recoverability
    Workday populates this value from the
    Transaction Tax Category
     that you select.
    Workday always assesses the recoverable tax amount as zero for tax rates that aren’t subject to recoverability. Even when you select a recoverable tax applicability on the transaction line.
    Third Party Tax Rate
    Workday populates this check box from the
    Transaction Tax Category
     that you select.
    Tax Rate
    Workday uses this percentage to calculate the tax amounts on transaction lines.
    Workday doesn't prompt you for a tax rate when you set up a third-party tax rate.