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Administrator Guide
Last Updated: 2025-02-21
Create Deduction Recipient

Create Deduction Recipient

Set up the bank accounts to pay third-party deduction recipients.
Security:
Worker Data: Payroll (Income Withholding Orders)
 domain in the Core Payroll functional area.
Security: (Optional)
Set Up: Payroll Third-Party Payments
 domain in the Core Payroll functional area.
Record information for a third-party deduction recipient, including the:
  • Recipient
  • Contact information
  • Method of payment
  • Bank account details
Select a deduction recipient when creating:
  • a withholding order or making an ad hoc payment (CAN, FRA, USA)
  • a court order or making an ad hoc payment (UK)
  • a withholding order (AUS)
For Workday Payroll for Australia, Workday doesn't settle during the pay run process. Create a settlement run for payroll third-party payments to settle.
Workday delivers 2 web services that you can use when creating a custom integration for garnishment processing to or from a third-party application:
  • Put Deduction Recipients
     loads deduction recipient information into Workday.
  • Get Deduction Recipients
     retrieves information from Workday.
  1. Access the
    Create Deduction Recipient
     task.
  2. Enter the recipient
    Name
    .
  3. (Optional) For Payroll for the U.S., enter an
    Alternate Deduction Recipient Name
    .
    For national deduction recipients with multiple locations, such as the Internal Revenue Service (IRS), create an alternate deduction recipient to associate with a different address. When entering withholding orders, you can select the original or alternate deduction recipient and associated address.
  4. (Optional) Enter an
    External Entity ID
     that helps you identify the recipient.
    Enter a payee ID for a withholding order.
  5. (Optional) Define IDs for deduction recipients.
    The
    Deduction Recipient ID
     field displays when you've configured it on the
    Edit Tenant Setup - Financials
     task. Select an ID Definition from the
    ID Generator for Deduction Recipient
     field in the
    Business Entity Sequence ID
     section. Workday uses the ID during processing and with integrations.
  6. Select the
    Payment Type
    .
  7. Select the
    Country
     for the deduction recipient. This field isn't effective dated and is required, so you must update it when editing existing deduction recipients.
  8. Add contact information for the recipient.
    Selecting the
    Visibility
    Public
     check box makes the contact information visible in Workday.
  9. Add a
    Settlement Bank Account
     and enter information for the receiving account.
    You can only have 1 active settlement bank account at a time.
  10. (Optional) Select the
    Inactive
     option to deactivate a specific snapshot of a deduction recipient. To deactivate the entire deduction recipient, you must deactivate all snapshots.
  11. (Optional) Select the
    Enable Payroll Third-Party Payments
     option to generate and settle payments for Involuntary Withholding Order or Court Order deductions. For more information, see: Concept: Payroll Third-Party Payments.
  12. (Optional) The
    Always Separate Payment
     option is enabled by default when you select
    Enable Payroll Third-Party Payments
    . This option generates a separate payment for each payable item in a settlement run. If the payable item and payment have a 1:1 relationship when you generate an electronic payment for an Income Withholding Order or Court Order deduction recipient, we recommend you keep this option enabled.
  13. (Optional) Select a
    Category
    . These categories are configured through the
    Maintain Payroll Third-Party Payments Categories
     task. You can reference these categories in bank routing rules, settlement filtering, and the
    Maintain Remittance Setup Rule
     task. Workday generates both a Workday ID and a Reference ID for each payroll third-party payment category. You can customize the Reference ID, but not the Workday ID. You can use Reference IDs when running the Put Payroll Deduction Recipient and Put Bank Routing Rules web services. You can’t remove a category while it's assigned to a deduction recipient or referenced in bank routing rules.
Access the
View Deduction Recipient
 report. To see the
Deduction Recipient ID
, select
Integration IDs
View IDs
 from the related actions menu of the deduction recipient.
When creating or editing a deduction recipient, you can view future, current, and previous deduction recipient snapshots. The section under the
Effective Dated Details
 header represents the deduction recipient snapshot. Snapshots enable you to:
  • Enter an effective date when creating or editing a deduction recipient.
  • View the configuration as of a specific effective date of a deduction recipient.
  • Make configuration changes as of a specific date without impacting prior configurations.
  • Deactivate a deduction recipient.
You can add rows to a deduction recipient snapshot only if they're dated after the current effective snapshot. When you add a new snapshot, Workday copies the configuration of the prior snapshot to the newly added snapshot.
To remove a deduction recipient, access the
Delete Deduction Recipient
 task. You can only delete deduction recipients that have never been in use.