Concept: Paycheck Cashing Out Address (USA)
For compliance, some states in the U.S. require displaying a business address on the paycheck where a worker can cash out without a transaction fee.
To configure the required address for a specific state, you can access the
Maintain Payroll Check Cash Out Address
task secured by the Set Up: Payroll (Reporting)
domain in the Core Payroll functional area. Select an Effective Date
and enter the required:
- Business Name
- Address Line 1
- City
- Postal Code
Workday:
- Validates only thePostal Codefor the state.
- Displays the address on the paycheck based on the payroll payment date.
- Uses only 1 effective address per state.
- Uses this precedence to display the appropriate address on the paycheck:ComplianceNon-ComplianceFor workers taxed or primary work location in compliant states:
- Worker processing position location or state withholding in a compliant state.
- Worker processing position location.
- Maximum withholding amount.
- State alphabetical order.
For workers not taxed nor primary work location in compliant states:- State withholding.
- Worker position location.
- Maximum withholding amount.
- State alphabetical order.
These examples illustrate how Workday uses the precedence to display the appropriate address on a paycheck when a worker has multiple positions with different cash out addresses:
- Example 1: Compliance Precedence
- Mike has 3 positions at Global Retail (USA):Employee TaxesWithholding AmountPositionComplianceState Tax - FL-Floor Manager (Processing)YesState Tax - AZ$200TrainerNoState Tax - CA$50TrainerYesPayroll Administrator configures 3 different cash out addresses using theMaintain Payroll Check Cash Out Addresstask:Effective DateStateAddress1/1/2015ArizonaGlobal Inc, 987 Hope St., Phoenix, AZ - 850011/1/2015CaliforniaGlobal Inc, 123 Mission St., Los Angeles, CA, 900011/1/2015FloridaGlobal Inc, 567 Peach St., Miami, FL -33101
- Result:
- Workday displays Florida address on the paycheck. California and Florida both are compliant states but Florida takes the precedence as it's also the worker's processing position location.
- Example 2: Non-Compliance Precedence
- David has 3 positions at Global Retail (USA):Employee TaxesWithholding AmountPositionComplianceState Tax - MN$100Floor Manager (Processing)NoState Tax - WI$200TrainerNoState Tax - ND$50TrainerNoPayroll Administrator configures 2 different cash out addresses using theMaintain Payroll Check Cash Out Addresstask:Effective DateStateAddress1/1/2015North DakotaGlobal Inc, 987 Hope St., Bismark, ND - 585011/1/2015WisconsinGlobal Inc, 123 Mission St., Madison, WI - 53558
- Result:
- Workday displays Wisconsin address on the paycheck. The processing position in Minnesota has no cash out address configured. Wisconsin and North Dakota both have cash out addresses configured. Wisconsin takes the precedence because it has a higher withholding amount than North Dakota.