FAQ: Deduction Priorities and Arrears Processing

Can I set deduction priorities for both Workday-delivered and customer-defined deductions?

For Payroll for Canada and the U.S., yes. You can set priorities for all deductions regardless of who defined them. When adding deductions to the

Maintain Deduction Priorities

task, consider that Workday doesn't automatically assign higher priorities for Workday-delivered statutory deductions.

For Payroll for the UK, Workday recommends that you only add customer-defined deductions to the

Maintain Deduction Priorities

task, as the priorites are automatically assigned for Workday-delivered statutory deductions.

For Payroll for Autralia, Workday recommends that you only add customer-defined deductions to the

Maintain Deduction Priorities

task, as Payroll for Australia automatically assigns priorities for Workday-delivered statutory deductions.

Can you define deduction priorities for withholding orders? (CAN, USA)

You can add a withholding order to the

Maintain Deduction Priorities

task but you can’t track or recoup arrears. You can, however, configure Workday to take partial deductions. When you process a withholding order that you've added as deduction priority, Workday:

Calculates a withholding order amount based on a worker's disposable earnings. When a worker has multiple withholding orders, Workday uses the priorities from the

Override Priority Withholding Order

task to determine how to distribute the disposable earning amount.

Example: Workday calculates a bankruptcy deduction of 50 based on the worker’s disposable earnings.

Uses the priorities from the

Maintain Deduction Priorities

task to determine the priority of the calculated withholding order amount compared to other deductions. If there are insufficient funds for the withholding order amount, Workday takes either a partial deduction, or zero deduction based on the deduction priorities.

Example: The worker has insufficient net pay for the bankruptcy deduction of 50. If you enable partial deductions, Workday deducts up to the amount it can while still respecting the defined net pay for the worker.

An employee has a bankruptcy order that requires the processing of all taxes and medical deductions before the bankruptcy deduction. I need Workday to calculate a retirement deduction after the bankruptcy order. How can I configure the arrears process to meet these requirements? (CAN, USA)

Set up deduction priorities:

Order	Deduction
1	All medical deductions (pretax or post-tax)
2	Bankruptcy withholding
3	Retirement deduction
4	Other post-tax deductions

How do I assign deduction priorities to taxes? (CAN, USA)

Use the

Maintain Deduction Priorities

task to assign priorities to any deductions, including taxes.

Why does Workday display arrears for a worker after they already paid them?

The worker paid the arrears externally, such as with a personal check. You can adjust an arrears balance by running:

Additional manual payments, when you don't want to impact payroll, such as for terminated workers.

Adjustment payroll inputs, when you want to process them in payroll, such as for active workers or workers on leave.

Access the

Add Payroll Input for Workers

or

Run Manual Payment for Worker

task, and enter these values:

Option	Description
Special Entry	For payroll input only. Select the check box.
Input Details Type	Select Arrears Balance .
Input Details Value	Enter the amount by which you want to adjust an arrears balance. Examples: Enter -100 to reduce an arrears balance by 100. Enter 100 to increase an arrears balance by 100.

To process a payroll input, from the related actions menu of the pay result, select

Pay Calculation

Re-Calculate

. To process a manual payment, from the related actions menu of the manual payment pay result, select

Pay Calculation

Complete

.