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Administrator Guide
Last Updated: 2023-06-23
Set Up Salary Tax Reductions for Multiple Activity Sectors (FRA)

Set Up Salary Tax Reductions for Multiple Activity Sectors (FRA)

When a company has activities in multiple sectors, you can define different salary tax reductions for each sector. You can also then configure which activities to apply to:
  • A company.
  • Each worker.
  1. Access the
    Maintain Company FRA Salary Tax Sectors
     task.
    Define your company's activities and the associated
    Reduction Rate
    . Example: Casino.
    When you change the reduction rate for an activity sector, Workday applies the new value as of January. When you retroactively change the rate, Workday calculates a progressive regularization in the current payroll calculation.
    Security:
    Set Up: Payroll Company Specific (Taxes) - FRA
     domain in the FRA Payroll functional area.
  2. Access the
    Edit Company FRA Tax Configuration
     task.
    As you complete the
    Salary Tax
     grid on the
    Taxes
     tab, consider:
    Option
    Description
    Liability
    Select to indicate that the company is liable to salary tax. When you don't select this field, Workday considers the company to be exempt.
    Annual Ceiling
    Select to start calculating the annual salary tax ceiling as of the worker's first regular payroll calculation of the year. Workday recommends that you select this option for companies with multiple activity sectors.
    When clear, Workday only calculates the annual ceiling in December or when a worker is:
    • On leave.
    • Terminated.
    • Transferred.
    Multi Sectors
    Select to indicate that the company is liable to salary tax in multiple activity sectors.
    General
    Sector 1
    Sector 2
    Sector 3
    For each tax declaration category, select the corresponding company activity.
    Workday calculates salary tax and the corresponding reductions for activities listed here.
    Workday Default Tax Election
    Select the default activity that applies to workers who don't have a defined activity in their tax election.
    Select
    Exempted
     if, by default, workers are exempt from salary tax.
    Security:
    Set Up: Payroll Company Specific (Taxes) - FRA
     domain in the FRA Payroll functional area.
  3. Access the
    Add Worker FRA Tax Elections
     task.
    In the
    Salary Tax
     grid, select the
    Activity
     that applies to the worker. Applies when the worker has an activity that's different from the default activity defined at the company level. When a worker changes from a nondefault activity to the default activity, you must select the default activity as the worker's tax election.
    Security:
    Worker Data: Payroll (Company Specific) - FRA
     domain in the FRA Payroll functional area.
During a payroll calculation, Workday calculates 1 or more of these deductions for eligible workers:
  • TAX Salary Tax Reduction - Activity Sector 1 - ER [FRA]
  • TAX Salary Tax Reduction - Activity Sector 2 - ER [FRA]
  • TAX Salary Tax Reduction - Activity Sector 3 - ER [FRA]
  • TAX Salary Tax Reduction - Activity Sector General - ER [FRA]
After calculating payroll, you can access the
Salary Tax Summary for Multi-Sector Companies
 report to help you prepare your salary tax declaration for multisector companies.