Concept: Common Paymaster (USA)
- Common Paymasters
- Common paymasters enable you to reduce tax liability by designating a common paymaster company that serves as a single employer for:
- FICA wage bases.
- FUTA wage bases.
- SUI wage bases for configured states.
You're responsible for ensuring eligibility under applicable law for:- All companies included in the common paymaster relationship.
- All employees paid by the common paymaster.
- All states configured in the common paymaster relationship for SUI aggregation.
- Retro Pay Calculations
- You can:
- Calculate differences for workers who transfer companies that are in a common paymaster relationship. When the tax authorities between the companies are different, Workday considers the tax elections in the common paymaster company.
- Pay those differences using on-demand additional payments in the company that the differences are from. Use tax authority worktags.
Retro pay calculations don't support:- When the source or target companies are outside the common paymaster relationship, and the tax authorities are different.
- TheOther Authorityworktag because Workday doesn't consider local other tax authorities from the managing company.
- In-Progress Pay Results for Multiple Jobs
- Multiple in-progress pay results for a worker in a common paymaster relationship are aware of limits and balances of the other results when you meet these conditions:
- When the jobs are in 1 pay group, run the pay calculation for that pay group.
- When the jobs are in multiple pay groups:
- The pay groups must share the same period schedule.
- You must calculate the pay groups together in the same pay calculation run.
If you make an adjustment to any of these in-progress results, recalculate them all together again in the same pay calculation run. That way, the in-progress results can continue to account for limits and balances. If you recalculate any of these results independently from the others:- The in-progress results won't be able to account for limits and balances of the other results until you complete the pay result.
- You could have over or under withholding.
- Multiple Jobs and Different Period Schedules
- Workday determines the limits and balances to apply to in-progress results by looking at the last completed pay result for workers with multiple jobs that you are:
- Paying on different period schedules.
- Calculating in different pay calculation runs.
After you complete any pay result for a worker or pay group, you must recalculate any remaining in-progress results. Otherwise, you might have over or under withholding.