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Administrator Guide
Last Updated: 2024-01-26
Set Up Ongoing Multiple Work Jurisdictions (USA)

Set Up Ongoing Multiple Work Jurisdictions (USA)

Set up federal, state, and local tax reporting for the company. See:
Set up Workday to calculate and withhold taxes for multiple tax jurisdictions. For employees with multiple positions, the allocations apply to all positions.
Don't specify percentage splits for nonresident aliens. Nonresident aliens should have only 1 work state and 1 resident state.
  1. Access the
    Edit Company Federal US Tax Reporting
     task.
    Select the
    Allow Ongoing Work Jurisdiction Tax Allocation
     check box.
    Security:
    Set Up: Payroll - Company Specific (Taxes) - USA
     domain in the USA Payroll functional area. See:Steps: Enable Functional Areas and Security Policies
  2. Access the
    Add Worker US Tax Elections
     task for a worker.
    From the
    Additional States
     prompt, select the additional work states and click
    OK
    .
    On
    Tax Allocations
     tab, define the work taxing jurisdiction levels. As you complete the
    Ongoing Work Jurisdictions
     grid, consider:
    Option Description
    Effective Date
    Enter the date the tax allocations begin, if they are after the effective date you entered to access this task. The worker must belong to the same company on both dates.
    Workday uses the allocations in effect on the pay period end date or subperiod end date (if the allocations change midperiod).
    County, City
    Select from the counties and cities set up for the worker's company on the
    Edit Company State and Local US Tax Reporting
     task.
    Other
    Select from the nonmandatory
    Other
     taxes.
    Allocation Percent
    Enter the percentage of work performed in each tax jurisdiction. The total of all allocations must equal 100%.
    If the total allocated to taxes for a state is less than 100%, Workday calculates the taxes listed here, unless you inactivate them:
    • The
      Other
       grid on the
      State
       tab.
    • The
      Local
       tab
    You can select the
    Inactive
     check box to inactivate existing allocations. To reactivate later, add a new row with a later effective date.
    Security:
    Worker Data: Payroll (Company Specific) - USA
     domain in the USA Payroll functional area.
  3. Access the
    Create Earnings
     or
    Create Deductions
     task.
    Workday processes each earning for each jurisdiction defined on a worker's tax election, and applies the associated jurisdiction worktags. By default Workday applies the allocation percentage for the jurisdiction when calculating the earning. In the
    Multiple Work Jurisdictions
     section, you can select the
    Do Not Apply Percentage Splits
     check box to prevent Workday from splitting the calculation. In this case, Workday processes the pay component in full for each jurisdiction.
    When determining whether to apply percentage splits to a pay component, consider:
    • Whether you want to apply them at the pay component or pay component related calculation-level.
    • Whether the calculation, eligibility, or limits of the pay components reference pay components with the same jurisdictions. In this case, Workday recommends that you reference a pay accumulation instead of directly referencing the pay components. Using a pay accumulation enables you to choose whether you want to filter by worktag or not.
    Security:
    Set Up: Payroll (Calculations - Payroll Specific)
     domain in the Core Payroll functional area.
Workday calculates and withholds taxes for each jurisdiction based on percentages you specified. During a payroll run, before calculating taxes, Workday applies the percentages to:
  • Taxable earnings
  • Imputed income
  • Pretax deductions
Steve works 60% in San Francisco, California, 20% in Bellevue, Ohio, and 20% in Cleveland, Ohio. Access the
Edit Company Federal US Tax Reporting
 task and select the
Allow Ongoing Work Jurisdiction Tax Allocation
 check box. Access
Tax Allocation
 tab on the
Add Worker US Tax Elections
 task and enter these settings in the
Ongoing Work Jurisdictions
 section:
State
City
Allocation Percent
California
San Francisco (California: San Francisco)
60
Ohio
Bellevue City (Ohio: Huron)
20
Ohio
Cleveland (Ohio: Cuyahoga)
20