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Administrator Guide
Last Updated: 2023-06-23
Example: Calculate Withholding Tax Using Progressive Rates

Example: Calculate Withholding Tax Using Progressive Rates

This example illustrates how to configure progressive rates for calculating withholding tax on customer or supplier invoices.
As an accounts payable or accounts receivable specialist, you need to determine the withholding tax rate using progressive rates. You determine that each invoice line has the same withholding tax rate for a supplier invoice. The invoice contains 3 lines in amounts of 10,000, 15,000, and 25,000 USD.
  1. Access the
    Create Withholding Tax Rate
     task.
  2. Enter these values:
    Field
    Value
    Realization Point
    Invoice
    Tax Base Type
    Net Amount
    Rate Type
    Progressive
    Threshold Type
    None of the above
  3. Specify an
    Effective Date
     when you can apply the progressive rate percentage on a withholding tax rate. Workday applies the progressive rate percentage on or after the specified effective date.
  4. In the
    Progressive Rate Tiers
     section, add rows with these values:
    Minimum Amount
    Maximum Amount
    Max Tier
    Tax Rate
    20,000
    Checked
    30
    1,000
    20,000
    Unchecked
    20
    0
    1,000
    Unchecked
    0
  5. Click
    OK
    .
  6. Submit the supplier invoice.
    Workday calculates the withholding tax amount and displays the tax rate on the invoice.
    Tier
    Taxable Amount
    Tax Rate
    Tax
    First
    1,000
    0
    0
    Second
    19,000
    20
    3,800
    Third
    30,000
    30
    9,000
    Total
    50,000
    12,800