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Administrator Guide
Last Updated: 2023-06-23
Concept: Common Paymaster (USA)

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.
  • The
    Other Authority
    worktag 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.