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Administrator Guide
Last Updated: 2023-06-23
Example: Add Income Tax Regularizations (FRA)

Example: Add Income Tax Regularizations (FRA)

This example illustrates how to create an income tax withholding regularization for a worker with a negative taxable net pay.
Andre is terminated at the end of February 2020 and receives a bonus amount of 1500 EUR. You calculate income tax withholding with a 5% rate from DGFIP.
In March 2020, you:
  • Receive a 200 EUR IJSS payment (206.22 EUR taxable base) for Andre.
  • Recognize that you need to change the February bonus from 1500 EUR to 1000 EUR.
You need to provide complementary pay to:
  • Retroactively correct the bonus amount.
  • Pay the IJSS net amount.
You calculate that Andre's taxable net for the complementary pay is -612.07 EUR. Since Andre's pay is negative, you need to manually regularize the withholding tax amount.
Security:
Worker Data: Payroll (Payroll Input)
 domain in the Core Payroll functional area.
  1. Access the
    Add Payroll Input by Worker
     task.
  2. In the
    Worker Defaults
     section, enter these values:
    Option Description
    Worker
    Andre
    Start Date
    February 1, 2020
    End Date
    February 29, 2020
  3. In the
    Processing Defaults
     section, select:
    • One-time
    • Override
    • Regular Run Category
  4. Click
    OK
    .
  5. In the
    Input
     grid, add these rows:
    Pay Component
    Input Details -Type
    Input Details -Value
    TAX Withholding Tax Regularization
    Withholding Tax Basis
    -612.07
    Net Taxable Income
    -612.07
    Rate
    5
    Type of Regularization
    3
    TAX Withholding Tax Regularization on IJSS
    Withholding Tax Basis
    206.22
    Rate
    5
    Type of Regularization
    3
When you run a retro pay calculation, and then run March payroll calculations, Workday calculates these withholding tax regularizations:
Pay Component
Taxable Base
Rate
Amount
Withholding Tax Regularization
-612.07
5
30.60
Withholding Tax Regularization on IJSS
206.22
5
-10.31
In the monthly DSN for March 2020, Workday reports in block S21.G00.56:
  • The taxable base from the regularization for the bonus.
  • Aggregated bonus and IJSS regularization amounts (-30.60 EUR + 10.31 EUR).
Rubric
Description
Value
S21.G00.56.001
Error month
022020
S21.G00.56.002
Type of error
03
S21.G00.56.003
Taxable base regularization
-612.07
S21.G00.56.006
Rate in the error month
5
S21.G00.56.007
Amount
-20.29
S21.G00.56.010
Withholding tax basis
-405.85