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Administrator Guide
Last Updated: 2023-06-23
Steps: Set Up Income Tax Withholding (FRA)

Steps: Set Up Income Tax Withholding (FRA)

  • Review setup considerations for income tax withholding.
  • Set up
    DSN Polling (Machine to Machine)
     integration.
You can configure Workday to directly withhold a worker's income tax from their pay using either:
  • A rate from the Direction Générale des Finances Publiques (DGFIP).
  • A neutral rate calculated based on the worker's monthly taxable net and applicable neutral rate scale.
Workday doesn't automatically calculate the specific nonresident withholding tax (Retenue à la Source spécifique).
  1. Load income tax withholding rates. Choose from:
    • Launching the
      DSN Polling (Machine to Machine)
       integration to retrieve and upload any worker income tax rates that are included in the response from net-entreprises.fr.
    • Setting up an EIB to upload income tax withholding rates for rates received in a compte-rendu métier (CRM) that you manually download from net-entreprises.fr.
    When uploading income tax withholding rates through an integration or EIB, Workday identifies workers based on their Social Security Number or Temporary Technical Number (NTT). You can verify income tax withholding rates for a group of workers by accessing the
    FRA Tax Elections for Group of Workers
     report.
  2. Access the
    Edit Deduction
     task for your company's deductions for benefits in kind. Examples: Company cars, employer health insurance contributions.
    On the
    Non-Effective Dated
     tab, select
    FRA Benefits in Kind Deductions for Withholding Tax [FRA]
    .
    Workday doesn't deduct income tax withholding for benefits in kind if the taxation results in negative net pay. When determining if taxation would result in negative net pay, Workday considers exempted overtime and Indemnités Journalières de Sécurité Sociale (IJSS) payments.
    Security:
    Set Up: Payroll (Calculations - Payroll Specific)
     domain in the Core Payroll functional area.
  3. Access the
    Edit Run Category
     task.
    On the
    Nonactive (On Cycle, On Demand Replacement)
     tab, select
    TAX Withholding Tax [FRA]
     from the
    Pay Components to Calculate
     prompt on rows for:
    • Terminated workers.
    • Workers on leave.
    Security:
    Set Up: Payroll - Pay Group Specific
     domain in the Core Payroll functional area.
  4. Create an audit based on the
    Memo - Reference Values for Withholding Tax [FRA] - Withholding Tax Taxable Base < 0
     payroll calculation.
    Workday recommends that you use the audit to identify workers who potentially need an income tax regularization due to a negative income tax withholding taxable base.
After calculating payroll, you can view the income tax amount on the payroll results for the
TAX Withholding Tax [FRA]
 deduction.
You can also view the deducted income tax amounts on payslips that are based on both: