Concept: Statutory Compliance (USA)
Taxes
Workday Payroll for U.S. supports employer withholding obligations by performing the following tax calculations – including tax rates, wage and payment limits, and allowances:
- Federal Taxes
- Federal Income Tax Withholding
- FICA (OASDI/Medicare - Employee and Employer Paid)
- Unemployment Insurance – (Employee and Employer Paid)
- Unemployment Insurance Credit Reduction (Employer Paid)
- Employee Reported Tips [USA]
- Additional Medicare Tax
- State Taxes
- State Income Tax Withholding (including multistate withholding rules)
- Unemployment Insurance – Employer Paid
- Federal Unemployment Insurance Credit Reduction (Employer Paid)
- Advanced Earned Income Credit (Indiana and Wisconsin)
- Special State Taxes
- Local Taxes
- City Withholding (including multicity withholding rules)
- County Withholding
- School District Withholding
- Special Locality Taxes
Calculations for Federal, State, and City Tax Withholding
To calculate tax withholding amounts for a pay period, Workday:
- Determines taxable wages for the period.
- Annualizes the amount.
- Calculates the tax based on the annualized amount.
- Deannualizes the tax result.
Involuntary Withholding Orders/Garnishments
Workday Payroll for U.S. supports these types of garnishment calculations:
- Bankruptcy orders
- Creditor garnishments
- Federal Administrative wage garnishments
- Federal student loans
- Federal tax levies
- State tax levies
- Support orders (including lump sum)
- Wage assignments
For each type, Workday calculates:
- Disposable earnings.
- Limits.
- Allocation methods at federal and state level.
Minimum Wage
Workday delivers and maintains federal, state, and local minimum wage values. Use these reports to view minimum wage data:
Report | Description |
|---|---|
All Payroll Authority Minimum Wages
| Displays minimum wage for each local and state tax authority and the federal minimum wage. |
Payroll Authority Minimum Wages
| Displays minimum wages for a state and local tax authority. |
Payroll Compliance Update Reporting
You can use the
Payroll Compliance Update Documentation
report to look up Workday-delivered compliance updates (since 2014/08/01) by:
- Country.
- Type.
- Tax year.
- Delivery date range.
- Deductions.
- Tax authorities.
Verification of Legal Obligations
Workday Payroll for U.S. is designed to assist you generally in the withholding of taxes and other amounts required by law. However, you should independently verify your withholding and remittance obligations required by the various jurisdictions in which you operate.