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Administrator Guide
Last Updated: 2025-10-31
Create 401(k) Loan Repayment Deduction (USA)

Create 401(k) Loan Repayment Deduction (USA)

Create a 401(k) retirement savings plan.
The worker has received a loan from the savings.
Security:
Set Up: Payroll (Calculations - Payroll Specific)
 domain in the Core Payroll functional area.
Create a deduction that you can use to specify the loan balance and how to repay it.
  1. Access the
    Create Deduction
     task, name it
    401k Loan Repayment
    , and enter a unique code for it.
  2. On the
    Effective Dated
     tab:
    1. Under
      Criteria
       in the
      Worker Eligibility
       field, select
      Payroll Input Exists for Pay Component
      .
    2. Under
      Calculation Details
       in the
      Calculation
       field, select
      Original Amount
      .
    3. Under
      Calculation Worktags
      , select
      401k Loan
      .
      For workers with more than 1 401(k) loan, select the
      Include Input
       check box. When you select this check box, the payroll administrator must select the worktag associated with the corresponding loan.
    4. Under
      Related Calculations
      , use the
      Create Related Calculation
       option on the
      Related Calculation
       prompt to create the
      401k Loan Balance
      . Then complete the row:
      Related Calculation
      Override Calculation
      Limit Details - Value
      Limit Details - Balance Period
      Input Allowed?
      Do Not Store / Do Not Store if Zero.
      Display
      401k Loan Balance
      Payroll Input
      Yes
      Do Not Store if Zero.
      Yes
    5. Enter a second row:
      Related Calculation
      Override Calculation
      Limit Details - Value
      Limit Details - Balance Period
      Limit Filter Worktag Default Filter Worktags
      Input Allowed?
      Do Not Store / Do Not Store if Zero.
      Display
      Original Amount
      Payroll Input
      401k Loan Balance
      Open Ended (Based on Period End Date)
      401k Loan
      Yes
      Do Not Store if Zero.
      Yes
  3. On the
    Non-Effective Dated
     tab in the
    Groups
     field, select
    Post Tax Deductions
     to add the deduction to the
    Post Tax Deductions
     pay component group.
  4. When you enter payroll input for this deduction, enter the:
    • Total outstanding loan balance in the
      401k Loan Balance
      field.
    • Per-pay-period repayment amount in the
      Original Amount
       field.
When you enter payroll input for this deduction and run payroll, Workday:
  • Processes the loan repayment from gross pay.
  • Displays the loan repayment in the pay results.