Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2023-06-23
Set Up Company Taxes by Location (USA)

Set Up Company Taxes by Location (USA)

Locations must have a usage type of
Payroll Tax
 and
Business Site
.
Security:
Set Up: Payroll - Company Specific (Taxes) - USA
 domain in the USA Payroll functional area.
Set up tax location mapping (TLM) to have Workday automatically withhold taxes for time reported with location worktags. You also have the option to set up pretax deduction allocations.
  1. (Optional) Activate pretax deduction allocations.
    1. Access the
      Edit Company Federal US Tax Reporting
       task.
    2. In the
      Company Tax Reporting
       grid, select the
      Allow Pre-Tax Deduction Allocation
       check box.
    3. To exclude an earning from the pretax deduction allocation calculation, add it to the
      Pre-Tax Deduction Allocation Exclusion
       pay component group. Example: You want to exclude a non cash-taxable earning that's used in the calculation of another earning.
  2. Activate TLM for a company.
    1. Access the
      Edit Company Federal US Tax Reporting
       task.
    2. In the
      Company Tax Reporting
       grid, select the
      Enable Tax Mapping on Location
       check box.
      Select the
      Enable Tax Mapping on Location
       check box before creating and approving time blocks in Workday Time Tracking. Otherwise, Workday won't be able to link a time entry containing a reported Location to the tax authority codes of the Location.
      If you select the
      Enable Tax Mapping on Location
       check box after you've approved time, you must update, resubmit, and approve the time blocks. Workday Payroll can then pick up the time blocks, and split them to different US tax authorities.
    The
    Tax Location Mappings
     tab displays on the
    Add Worker US Tax Elections
     task for employees of the company.
  3. Access the
    Maintain Payroll Tax Mapping on Location
     task to assign tax authorities to payroll tax locations.
    1. Select a payroll tax location from the
      Location
       prompt.
    2. In a new row on the
      Location
       grid, select tax authorities for
      State
      ,
      County
      ,
      City
      , and
      Other
      .
    Alternatively, you can use these web services to update your tax location configurations for workers:
    • Get Payroll Payee Tax Location Mappings
    • Put Payroll Payee Tax Location Mapping
    For the
    Put
     web service:
    • Activate TLM at the company level.
    • Ensure that an effective date is present in the load.
    For audit purposes, the
    Put
     web service adds data and doesn't overwrite or update existing data.
    You can use the
    Payroll Tax Mappings on Location
     report to review all payroll tax locations and the:
    • TLM activation statuses.
    • Respective tax authority designations.
  4. (Optional) Access the
    Add Worker US Tax Elections
     task to inactivate TLM for a worker.
    Option Description
    Inactivate for locations in a specific state
    Locate the active state on the
    Tax Location Mappings
     grid, and select the
    Inactivate Tax Location Mapping
     check box.
    Inactivate for all locations
    Add a new row in the grid, enter the date to stop the existing tax location mappings, and select the
    Inactivate Tax Location Mapping
     check box.
    You can use the
    Payroll Tax Mapping Inactivation on Worker
     report to review worker status. You can use this report to identify workers excluded from state taxation before running payroll for a pay group.
Workday Payroll applies TLM to any time entry or payroll input transactions that contain a payroll tax location.
Access these reports:
  • Company US Federal Tax Reporting
  • Worker US Tax Elections
  • View Location