Setup Considerations: Income Withholding Orders (AUS)

You can use this topic to help make decisions when planning your configuration and use of Australian income withholding orders. It explains:

Why to set it up.

How it fits into the rest of Workday.

Downstream impacts and cross-product interactions.

Security requirements and business process configurations.

Questions and limitations to consider before implementation.

Refer to detailed task instructions for full configuration details.

What It Is

Workday enables you to process income withholding orders using rules that follow Australian legislation. You can process:

Child support.

Court orders.

Section 72A orders.

Business Benefits

Workday helps you to comply with withholding order requirements by:

Determining the amount to withhold from the worker's earnings.

Applying withholding limits and setting priorities for what to withhold.

Override the withholding order calculation rules in accordance with legislative changes.

Providing visibility into the calculation rules that Workday uses to calculate withholding orders.

Providing Workday-delivered statutory pay components for each withholding type.

Dynamically displaying the required fields for each type of withholding order you record.

Beginning automatic deductions during payroll processing once you record a withholding order.

Calculating multiple withholding orders based on the rules for each order type and state or territory.

Aggregating withholding amounts to avoid exceeding limits for withholding orders.

Use Cases

Payroll administrators can view active and inactive withholding orders directly from the worker's profile.

For workers who have multiple withholding orders, and the total amount to withhold exceeds the protected earnings limit, Workday uses statutory rules to calculate the amount to withhold per order. You can override the amount if required.

You can override the applicable legislation for court orders.

When a worker has multiple withholding orders, you can change the order in which they're processed.

You can enter amended support orders with different dates. Workday creates a new record for the amended order, and retains the original order.

Questions to Consider

Questions	Considerations
For workers with multiple withholding orders, which ones have higher priority?	When a worker has multiple withholding orders, Workday assigns the same processing priority to all orders of the same type. Workday uses the order date as the sorting method. Unless you override the priority, orders will be processed according to their dates. By default, Workday will process section 72a and child support orders before court orders.
How will the money be disbursed?	Workday doesn't process disbursements during the pay run. You need to run a separate process. Consider when and how to run the settlement process.
Do you want workers to be able to see attachments and comments on their withholding orders?	The ability to view the withholding order, any attachments, and comments are controlled by different security domains. The domain to view the withholding order is: Worker Data: Payroll (Withholding Orders) - AUS . The domain to see attachments and comments on the withholding order is: Worker Data: Payroll (Income Withholding Orders) .

Recommendations

Terminate withholding orders for workers who are terminated or transfer out of a company after their final pay in a company. This avoids unintentional deductions if the worker is rehired.

If the worker's employing company changes, contact the deduction recipient to inform them of the change.

Requirements

Add earnings and deductions to the pay component groups that Workday uses to calculate disposable income.

Limitations

You can't delete withholding orders that Workday has calculated as part of a payroll, even if the payroll isn't complete yet. You can inactivate the order instead.

Tenant Setup

Define IDs for deduction recipients. Workday will use the IDs during processing and with integrations on the

Edit Tenant Setup - Financials

task.

Security

Domains	Considerations
Worker Data: Payroll (Withholding Orders) - AUS	Enables you to record and view withholding orders.
Worker Data: Payroll (Income Withholding Orders)	Enables you to view attachments and comments on withholding orders.

Business Processes

No impact.

Reporting

Reports or Dashboards	Considerations
All Payroll Withholding Order Data	Displays the calculation rules of Workday for calculating withholding orders, by tax authority and order type. Includes information on: Withholding limits. Calculation methods. Prioritization.
View Payroll Withholding Order Data	Displays an overview of the withholding order information that Workday maintains, such as: Calculation rules, as-of a date. Compliance updates by country and withholding order type.
Pay Calculation Results - Deduction Register	View withholding order deductions in one or more periods, pay run groups, or pay groups.
Withholding Order Payments	View all withholding orders that were calculated during a pay period.
Withholding Orders for Worker	Enables you to edit, delete, change the processing priority, and view deduction history of a withholding order.

Integrations

You can use these web services when creating a custom integration for withholding order processing to or from a third-party application:

Get Australia Withholding Orders (Web Service)

Put Australia Withholding Orders (Web Service)

Connections and Touchpoints

Create and set up bank accounts to pay third-party deduction recipients.

Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.