Concept: FLSA and Payroll Processing Position
You can configure the payroll processing position rules for workers with multiple jobs. Based
on the rules you select, you must consider changes to their taxes related to FLSA.
The changes to taxes can occur when a worker is in different companies or pay groups with
multiple gross-to-nets. On the
Maintain Payroll Processing Position
Rules
task, when you configure:- Primary position as the processing position, Workday uses the work state for the primary job to determine taxation regardless of which gross to net is being calculated.
- Position override as the processing position, Workday uses the work state based on each position. Also consider impacts to taxes when a worker with each position is in a different state. FLSA adjustments for overtime earned in 1 job can be paid on the other job. Example:A worker has 2 jobs. Job 1 has a work state of Connecticut and Job 2 has a work state of New York. The worker gets paid regular, overtime, and a shift differential in each job. This creates 2 gross-to-net results (GTN 1 and GTN 2). Workday:
- For Job 1, calculates the FLSA overtime premium rate based on the earnings in the GTN1 and is taxed in Connecticut.
- For Job 2, calculates the FLSA overtime premium rate based on all the hours and wages including both GTN1 and GTN2. Overtime adjustments for both GTN1 and GTN2 are taxed in New York even though the original overtime for GTN1 was taxed in Connecticut.