Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2023-06-23
Steps: Set Up Tax Locations for Time Entry

Steps: Set Up Tax Locations for Time Entry

Set up time entry so that workers are taxed at rates that are based on the locations for which they enter time.
Example: Laura is a consultant based in Illinois, but she frequently works in California. During the last pay period, she worked 24 hours in Illinois and 64 hours in California. You need to enable her to specify that she worked 24 hours in Illinois and 64 hours in California so that Workday Payroll can tax her earnings for those hours at the appropriate rates.
  1. Map tax authorities to locations.
  2. Enable the
    Location
     worktag for time entry so that workers can specify a location when they enter time.
  3. (Optional) Configure default location worktags for projects so that workers don't have to manually specify a location whenever they enter time for a project.
    1. Add
      Location
       as a
      Worktag Type
      .
    2. Select a location to use as the
      Default Worktag
      .
      The default location automatically populates when workers enter time for this project. They can override this location as necessary.
When workers enter time, they can report a location for the time block. If you've configured a default
Location
 worktag for a project, Workday automatically adds the default location to the time block when workers report time for that project. If necessary, the workers can override the default location and tag the time block with another location instead.
After you approve the time blocks, Workday Payroll withholds taxes on the workers' earnings based on the rates established by the tax authorities mapped to the locations specified on the time blocks.