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Administrator Guide
Last Updated: 2024-01-26
Example: Create an Earning for Employer Contribution for Domestic Partner Benefits (USA)

Example: Create an Earning for Employer Contribution for Domestic Partner Benefits (USA)

Create a taxable earning for Medical Aetna - HMO for the employer contribution for employee domestic partners, with tax authority exceptions for states that recognize domestic partnerships.
Security:
Set Up: Payroll (Calculations - Payroll Specific)
domain in the Core Payroll functional area. See: Steps: Enable Functional Areas and Security Policies.
  1. Access the
    Create Earning
    task.
  2. Enter these settings:
    Option Description
    Name
    Medical - AETNA - ER DP [USA]
    Code
    AET_ERDP
  3. Enter these settings on the
    Effective Dated
    tab:
    Option Description
    Worker Eligibility
    Benefits Is Domestic Partner Covered
    Calculation
    Benefits: Employer Cost (Taxable)
  4. Enter these settings on the
    Non-Effective Dated
    tab:
    Option Description
    Groups
    • Federal Taxable (Withhold Taxes) [USA]
    • FICA Taxable [USA]
    • Local Withholding Taxable (Withhold Taxes) [USA]
    • Local Withholding Taxable Employer (Withhold Taxes) [USA]
    • Non Cash Taxable Benefits
    • State Withholding Taxable (Withhold Taxes) [USA]
    Add
    SUI Taxable [USA]
    , if you need wages added to state taxes, such as
    CA: State Disability Insurance (SDI) - Mandatory [USA]
    .
    Benefit Plan
    Medical Aetna - HMO
  5. Access the
    Maintain Tax Authority Exceptions Pay Component Groups
    task and select the
    State Withholding Taxable (Withhold Taxes) [USA]
    Pay Component Group
    .
  6. Create an exception:
    Option Description
    Payroll Tax Authority
    [List the tax authorities that recognize domestic partnerships.]
    Exclude Pay Components
    Medical - AETNA - ER DP [USA]
When Workday processes payroll, employers contribute to the domestic partner Medical Aetna - HMO benefit:
  • In federal and nonexcepted tax authorities as a taxable contribution.
  • In excepted tax authorities as a nontaxable contribution.