Define Tax Authority Exceptions from Pay Component Groups (CAN)

Add the province worktag to the pay components in the pay component group.

Security: Set Up: Payroll (Calculations - Payroll Specific)
domain in the Core Payroll functional area.

You can set up a pay component group (PCG) to either exclude or include pay components for a tax authority.

Access the

Maintain Tax Authority Exceptions Pay Component Groups

task.

Select the

Pay Component Group

that requires exceptions.

Select a date from the

Update Existing Effective Date

Add New Effective Date

prompt.

When you add an effective date for an exception for taxes or withholding orders, Workday considers the exception snapshot that’s effective as of the payment date or payment date override while processing payroll calculations.

For Flat Sum Bonus, Workday considers the snapshot that's effective as of the subperiod or period end dates while processing calculations.

On the

Effective Dated Details

tab, in the

Exceptions for Taxes

section, select the

Payroll Tax Authority

From the

Exclude Pay Component(s)

prompt, select the pay component that should be excluded from the PCG.

From the

Include Pay Component(s)

prompt, select the pay component that should be included in the PCG

On the

Exceptions for Withholding Orders

tab, specify exceptions to the disposable earnings calculation for withholding orders.

From the

Payroll Tax Authority

prompt, select 1 or more tax authorities that calculate disposable earnings differently.

From the

Withholding Order Type

prompt, select 1 or more types of withholding orders.

When the pay component:

Is part of the group but the tax authority treatment of it doesn't apply, select it from the

Exclude Pay Component(s)

prompt.

Isn't part of the group but the tax authority treatment of it does apply, select it from the

Include Pay Component(s)

prompt.

Workday makes the PCG exceptions that you configure. You can access the

View Pay Component Group

report to verify the

Exceptions

tab in the

Effective Dated Details

Example

The Pay in Lieu of Notice [CAN]
earning should be included in the Workers Compensation Exempt
PCG for:

British Columbia

Quebec

Saskatchewan

Yukon

Exceptions for taxes for the Workers Compensation Exempt [CAN]
PCG:

Payroll Tax Authority	Exclude Pay Component(s)	Include Pay Component(s)
British Columbia Quebec Saskatchewan Yukon		Pay in Lieu of Notice [CAN]

With this configuration, Workday includes the Pay in Lieu of Notice [CAN]
pay component in the Workers Compensation Exempt [CAN]
PCG when processing payroll for British Columbia, Quebec, Saskatchewan, and Yukon.