Concept: Pay and Tax Calculation in Predecessor and Successor Companies
(USA)
- Worker Payment is In Progress for both Predecessor and Successor Companies
- Workday considers the taxable wages and taxes with limits from the predecessor company when calculating the successor company. Complete worker payroll results in predecessor companies before completing payroll in the successor company.Predecessor Payment StatusSuccessor Payment StatusIn ProgressPending CompletionCompleteRequires Re-CalculationExample:Company Z acquires Company A on 2013-6-3, and a worker transfers from Company A to Z on 2013-6-10.Both companies reside in the same pay group with a pay period of 2013-6-1 to 2013-6-15. The worker has 2 subperiod gross-to-net payments in progress:
- Company A for 2013-6-1 to 2013-6-9 (In Progress).
- Company Z for 2013-6-10 to 2013-6-15 (Pending Completion of Prior).
When the Company A payroll is complete:- The calculation status of Company Z payroll for this worker changes toRequires Re-Calculation.
- Workday recalculates taxes considering the taxable wages and tax limits from Company A, the predecessor company.
- Employee Works in the Successor Company
- Workday calculates cross company taxable wages and applies limits differently for mergers and acquisitions:TypeHow Workday Handles LimitsMergerUses taxable wages and taxes in both predecessor and successor companies for the calendar year in which the merger takes place. Includes wages for workers terminated by the predecessor company before the merger.AcquisitionUses taxable wages and taxes in both predecessor and successor companies for the calendar year of the acquisition. Includes only workers actively employed at the time of the acquisition.For an acquisition, Workday enables you to load successor employer types of company relationships using these web services:
- Get Successor Employer
- Put Successor Employer
Manage: Company and Set Up: Payroll - Company Specific (Taxes) - USAdomains in the USA Payroll functional area.