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Administrator Guide
Last Updated: 2024-03-08
Create a Prior Period Tax Adjustment Result (USA)

Create a Prior Period Tax Adjustment Result (USA)

Have a completed payroll result for a worker.
Security:
Process: Off-Cycle
 domain in the Core Payroll functional area.
You can create a prior period tax adjustment result to recalculate a worker's primary tax authority wages and taxes for a completed payroll result.
If you adjust the taxes of a pay result that was created from a nonregular run category, you must create the tax adjustment result in the regular run category.
You can create only 1 tax adjustment result per original payroll result.
  1. Access a completed payroll result for the worker who needs their tax authority wages or taxes adjusted.
  2. From the related actions menu of the completed payroll result, select
    Prior Period Tax Adjustment
    Run
    .
  3. As you complete the
    Tax Adjustment Result Processing Details
     section, consider:
    Option
    Description
    Prior Period
    Select this check box to adjust the worker’s taxes in a prior period.
    Payment Date
    Select a payment date for where you want to report your tax adjustment result.
    Net Pay Offset Code
    (Optional) From the prompt, select the net pay offset code that you created for earnings or deductions.
    Workday only displays codes that you configured with these pay component groups:
    • Adds to Gross
       for earnings.
    • Post Tax Deductions
       for deductions.
  4. As you review the
    Tax Adjustment Summary
     section, consider:
    Option
    Description
    Employee Tax Difference
    Displays how much tax the employee has been over or under withheld.
    This field helps you verify how the worker is impacted and determine whether you want to:
    • Collect or refund the tax.
    • Offset the difference using a net pay offset code.
    Use Override Tax Amount
    You can’t override the:
    • Original tax authority amounts.
    • Tax authority’s related calculations.
    To override the taxes for the newly calculated tax authority amounts, select this check box in either or both of these grids:
    • Tax Adjustment Differences - Employee
    • Tax Adjustment Differences - Employer
    Workday uses the override tax amount value in the tax adjustment result instead of the calculated value.
  5. Verify the calculations before creating your tax adjustment result.
  6. Click
    Create Tax Adjustment Result
    .
Workday creates the tax adjustment result:
  • As an in-progress on-demand additional (ODA) payment.
  • With a subperiod target date equal to the period end date or the termination date of the worker if they were terminated.
Workday:
  • Automatically assigns the ODA a payment priority of zero.
  • Doesn’t send any earnings or deductions because they were already paid and reported on the original pay result.
  • Sends both the original and new tax authorities and wages from the PPTA calculator to the ODA payment.
  • Sends the company as a worktag override when creating the ODA.
To modify:
  • An in-progress ODA payment, rerun the PPTA calculator on the same original pay result to create a new tax adjustment result.
  • A completed ODA payment, you can:
    • Cancel complete, cancel, or reverse the ODA result.
    • Rerun the PPTA calculator on the same original pay result to create a new tax adjustment result.