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Administrator Guide
Last Updated: 2024-01-26
Process Income Tax Regularizations (FRA)

Process Income Tax Regularizations (FRA)

  • Have existing payroll results in Workday for the period that you want to adjust.
  • Security:
    Worker Data: Payroll (Payroll Input)
     domain in the Core Payroll functional area.
You can process a regularization to adjust a worker's current payroll to account for an incorrect withholding tax calculation from a previous period.
You can process regularizations for calculations based on an incorrect:
  • Rate.
  • Taxable base, resulting in a withholding correction.
  • Taxable base, not resulting in a withholding correction.
When you accidentally overpay a worker, you generally don't need to process a regularization to correct the corresponding income tax withholding. You can, however, enter regularizations for workers when a correction isn't possible due to a negative net taxable pay.
Workday reports DSN block S21.G00.56 for all workers with a payroll regularization.
  1. Access the
    Add Payroll Input by Worker
     task.
  2. In the
    Worker Defaults
     section, consider:
    Option Description
    Start Date
    End Date
    Enter the dates for the original tax withholding period. Workday reports this period in DSN rubric S21.G00.56.001.
    Workday only processes regularizations for prior periods.
    Pay Component
    Select 1 of these deductions:
    • TAX Withholding Regularization on IJSS [FRA]
       for regularizations related to Indemnités Journalières de Sécurité Sociale.
    • TAX Withholding Regularization [FRA]
       for all other regularizations.
  3. In the
    Process Defaults
     section, select:
    • One-time
    • Override
    • Regular Run Category
  4. In the
    Input Grid
    , add a row and enter values for these
    Input Details
     types:
    Type
    Description
    Type of Regularization
    Enter 1 of these values:
    • 1: For regularizations related to the taxable net pay.
    • 2: For regularizations related to the rate.
    • 3: For regularizations linked to overpayments to workers who currently have a negative taxable net.
    • 4: For regularizations related to a previous declared taxable net pay, but not the calculated withholding.
    Workday reports the type of regularization in DSN rubric S21.G00.56.002.
    Net Taxable Income
    Doesn't apply to regularizations on IJSS.
    Workday reports this amount in these DSN rubrics:
    • S21.G00.56.003: Régularisation de la rémunération nette fiscale
    • S21.G00.56.004: Rémunération nette fiscale déclarée le mois de l’erreur
    For:
    • Rate regularizations: Enter the original net taxable income declared.
    • Other regularizations: Enter the difference between the original taxable income and the corrected taxable income.
    Nontaxable Income
    Doesn't apply to regularizations on IJSS.
    Applies to regularizations related to:
    • Taxable net.
    • Undue payments.
    Enter the amount of the regularization that isn't subject to income tax. Workday reports this amount in DSN rubric S21.G00.56.008:Régularisation du montant de la part non imposable du revenu.
    Rate
    Enter the rate used to calculate the tax regularization. For:
    • Rate regularizations: Enter the difference between the original rate and the corrected rate. Example: -1.5.
    • Other regularizations: Enter the original rate used to calculate the income tax withholding.
    Workday reports this amount in these DSN rubrics:
    • S21.G00.56.005 Régularisation du taux de prélèvement à la source.
    • S21.G00.56.006 Taux déclaré le mois de l’erreur.
    Withholding Tax Basis
    Enter the taxable base for the regularization that is subject to income tax withholding. For:
    • Taxable net regularizations (type 1 and 4): Enter the difference between the original and corrected amount subject to tax. Example: -200.
    • Rate regularizations: Enter the original amount subject to tax.
    • Undue payment regularizations: Enter the negative taxable net, or the IJSS amount.
In February, you accidentally used an income tax rate of 6.5% instead of 5% when calculating Jean's income tax withholding. In February, Jean had a:
  • Taxable net of 1400 EUR.
  • Taxable IJSS payments of 500 EUR.
In March, you add these payroll inputs for the February pay period:
Pay Component
Type
Value
TAX Withholding Regularization [FRA]
Withholding Tax Basis
1400
Net Taxable Income
1400
Nontaxable Income
0
Rate
-1.5
Type of Regularization
2
TAX Withholding Regularization on IJSS [FRA]
Withholding Tax Basis
500
Rate
-1.5
Type of Regularization
2
Run a retro pay calculation to calculate the amount of the regularization for income tax withholding.
After running a retro calculation, run a pay calculation to process the regularizations in the worker's current payroll.