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Administrator Guide
Last Updated: 2024-03-08
Steps: Create Net Pay Offset Code Pay Components (USA)

Steps: Create Net Pay Offset Code Pay Components (USA)

If you plan to collect tax differences from employees, you must create a net pay offset pay component before you use the prior period tax adjustment (PPTA) calculator.
You can create an earning or deduction to help ensure that Workday offsets the net pay on your tax adjustment result to zero. On the PPTA calculator, you can select the net pay offset pay component to send to your tax adjustment result.
Your net pay offset pay component must:
  • Be active as of the end date of the period where you create the tax adjustment result.
  • Not be based on a worktag or include any groups you added.
You can’t base your net pay offset pay component on a worktag because this might result in unexpected outcomes on your tax adjustment result.
Workday doesn’t automatically deduct or refund the tax differences applied to the net pay offset code on the tax adjustment result that you create.
  1. Create an earning for your net pay offset pay component.
    See Steps: Create Earnings.
    As you complete the
    Create Earning
     task, select:
    Option
    Description
    Country
    United States of America
    Effective Date
    A date in the pay period where you plan to post your tax adjustment result.
    We recommend that you select an effective date in the earliest pay period.
    Example: Select 2020-01-01 so that the net pay offset pay component is active for any pay period from that date onward.
    Worker Eligibility
    Payroll Input (Onetime or Ongoing) Exists for Pay Component (Sub Period)
     in the Worker Eligibility grid on the
    Effective Dated
     tab.
    Calculation
    Payroll Input
     on the
    Effective Dated
     tab.
    Input Amount Allowed?
    This check box on the
    Effective Dated
     tab.
    Groups
    Adds to Gross [CAN USA]
     on the
    Non-Effective Dated
     tab.
  2. Create a deduction for your net pay offset code.
    See Steps: Create Deductions.
    As you complete the
    Create Earning
     task, select:
    Option
    Description
    Country
    United States of America
    Effective Date
    A date within the pay period where you plan to post your tax adjustment result.
    We recommend that you select an effective date in the earliest pay period.
    Example: Select 2020-01-01 so that the net pay offset pay component is active for any pay period from that date onward.
    Worker Eligibility
    Payroll Input (Onetime or Ongoing) Exists for Pay Component (Sub Period)
     in the Worker Eligibility grid on the
    Effective Dated
     tab.
    Calculation
    Payroll Input
     on the
    Effective Dated
     tab.
    Input Amount Allowed?
    This check box on the
    Effective Dated
     tab.
    Groups
    Post Tax Deductions
     on the
    Non-Effective Dated
     tab.
On the
Prior Period Tax Adjustment Calculator
 task, you can:
  • Select your net pay offset pay component from the
    Net Pay Offset Code
     field.
  • Create the tax adjustment result with the net pay offset code that you select.
We recommend that you create a custom report to track net pay offset codes and their balances before you use these pay components on the PPTA calculator.
Create Custom Reports