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Administrator Guide
Last Updated: 2023-11-17
Concept: Additional State and Territory Considerations (USA)

Concept: Additional State and Territory Considerations (USA)

Consider this additional state- and territory-specific information as you set up payroll taxes.
California
At the beginning of the year, determine which disability insurance and family leave insurance plans you want Workday to calculate automatically. Add these plans using the
Edit Company State and Local US Tax Reporting
 task. Mandatory deductions calculate automatically and don't require tax elections. Select from:
  • CA: State Disability Insurance (SDI) - Mandatory
  • CA: Voluntary Disability Insurance - (VDI) - Mandatory
Also add
CA: California Voluntary Plan Assessment – Employer Paid [USA]
, if applicable.
To calculate accurate gross wages for taxes, you must configure an SUI Taxable tax authority exception for the tax authority that corresponds to the disability plan. Use the
Maintain Tax Authority Exceptions Pay Component Groups
 task to configure exceptions for these tax authorities:
  • CA: State Disability Insurance (SDI) - Mandatory
  • CA: State Disability Insurance (SDI) - Optional [USA]
  • CA: Voluntary Disability Insurance - (VDI) - Mandatory
  • CA: Voluntary Disability Insurance (VDI) - Optional [USA]
Guam
Workday automatically adjusts all payroll processing to the corresponding Guam taxes for workers who earned wages in another state or territory in the same year.
New Jersey
For New Jersey only, on the
Edit Company State and Local US Tax Reporting
 task, in the
Unemployment
 grid:
  • The
    Employer Tax Override Rate
     check box is renamed
    Use Tax Override Rate
    .
  • You can enter the Governmental Reimbursable override rate for SUI.
  • Enter
    SUI (ER [USA]
     and
    SUI [USA]
     on separate rows.
Determine which disability insurance and family leave insurance plans you want Workday to calculate automatically for employees (state or private). Add these plans in the
Other
 grid on the
Edit Company State and Local US Tax Reporting
 task. Select from:
  • New Jersey Temporary Disability Fund - Mandatory
  • New Jersey Voluntary Disability Insurance (NJVDI) - Mandatory
  • New Jersey Family Leave Insurance (NJFLI) - Mandatory
  • New Jersey Private Family Leave Insurance (NJPFLI) - Mandatory
New Jersey requires you to list employer private plans on the W-2 form. Access the
State
 tab and enter the plans in the
Other
 section. For each plan, select
EIN/Plan Number
 and enter the private plan number.
Also add
New Jersey Voluntary Disability Insurance (NJVDI) – Employer Paid [USA]
, if applicable.
New Jersey Disability Insurance Plan and Family Leave Insurance Private Plan numbers display in boxes 19 and 20 on the New Jersey W-2 form.
Pennsylvania
To report Pennsylvania local taxes to a single tax collector:
  • Register your business with a local tax collector.
  • Set up a Tax Collection District for your company. See Set Up Company Local Taxes (USA).
  • Select the
    Include Pennsylvania Local Taxes
     launch parameter on the
    MasterTax Tax Filing - Monthly
     integration.
  • Run the
    Get Monthly Worker Tax Filing Data
     web service to output monthly tax filing data for Pennsylvania local taxes.
Puerto Rico
Workday assigns a unique Control Number to each year-end tax form for Puerto Rico when you perform the
Create US Territory Year End Form Data
 task. Select the
Year End
 tab and enter the
First Control Number
 and
Last Control Number
.
Workday automatically populates the email address for the company contact in the Employer Email section when you perform the
Edit Company State and Local Tax Reporting
 task. If no email address is available, Workday populates the company email address.
Workday automatically adjusts all payroll processing to the corresponding Puerto Rico taxes for workers who earned wages in another state or territory in the same year.
U.S. Virgin Islands
Workday automatically adjusts all payroll processing to the corresponding Virgin Islands taxes for workers who earned wages in another state or territory in the same year.
Vermont
For information on filing the Vermont Employer Health Care Contribution Tax, see File Vermont Employer Health Care Contribution (USA).
Washington
Set up these taxes on the
State
 tab of the
Edit Company State and Local US Tax Reporting
 task:
  • Seattle Employee Hours
  • Washington Cares Fund
Set up Washington workers compensation on the
Workers Compensation Rate
 tab of the
Edit Company State and Local US Tax Reporting
 task. Select the
Use Tax Override Rate
 check box.
Enter the
Tax Override Rate
. If you don't provide a rate override, then Workday uses the default rate. Although the tax rate is an hourly rate, enter it here as a percentage.
Wyoming
You can set up Wyoming workers compensation. Access the
Edit Company State and Local US Tax Reporting
 task and enter the tax rate for each workers compensation code on the
Workers Compensation Rate
 tab. Workday defines compensation codes using the
Maintain Workers Compensation Codes
 task.