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Administrator Guide
Last Updated: 2026-04-17
Maintain Tax Treaty Information for a Worker (USA)

Maintain Tax Treaty Information for a Worker (USA)

Security:
Worker Data: Payroll (Company Specific) - USA
 domain in USA Payroll functional area.
You can:
  • Add or update nonresident alien (NRA) tax treaty information. Workday applies the tax treaty rules when it calculates withholding for certain types of income.
  • Use the
    Put Payroll Worker Tax Treaty
     web service to load tax treaty information for multiple workers from a third-party application.
A worker can only have one tax treaty per tax year per income code.
  1. Access the
    Maintain Worker Tax Treaties
     task.
  2. Complete the task:
    Option
    Description
    Tax Year
    The tax year when you’re adding or updating tax treaty information.
    Tax Residency Country
    The worker's country of residence that has a tax treaty with the U.S.
    Income Code
    The 2-digit IRS code for the type of income earned.
    Income Code Subtype
    For
    Income Code
    16 - Scholarship or fellowship grants
    , identify if the income is either:
    • Qualified
      , when the income isn’t subject to NRA withholding.
    • Or
      Non Qualified
      .
    Eligible for Withholding Allowance
    (Optional) If your
    Income Code Subtype
     is
    Non Qualified
    , select this check box.
    Withholding Rate
    (Optional) If your
    Income Code Subtype
     is
    Non Qualified
    , enter the applicable withholding rate for NRA taxes.
    Treaty Benefit Start Date
    The date when the treaty eligibility period starts. This is the time period when the worker receives treaty benefits.
    Treaty Benefit End Date
    The date when the treaty eligibility period ends. Workday reports wages earned after this period in the applicable year on W-2 forms. You can use this field to end a tax treaty rule.
    Example: You add nonresident alien tax treaty information for a worker on August 1, 2024. When you need to end the treaty, you update this prompt and select
    07/31/2025
    . Workday no longer applies the nonresident alien tax treaty rule as of the
    Treaty Benefit End Date
     when calculating income for that worker.
    Maximum Benefit Amount
    The maximum amount a worker can receive from treaty benefits.
    No Treaty Maximum
    (Optional) Select this checkbox to indicate that this tax treaty doesn’t have a
    Maximum Benefit Amount
    .
    If selected, you can’t enter a value in the
    Maximum Benefit Amount
     field.
    Treaty Eligibility Begin
    The date when the worker begins to be eligible to receive treaty benefits.
    Treaty Eligibility End
    The date when the worker is no longer eligible to receive treaty benefits.
When you calculate payroll and the worker is identified as a nonresident alien on the
Worker US Tax Elections
 report, Workday applies the tax treaty rules.
To review a worker's tax treaty information, take the related action on the worker
Payroll
View Tax Treaties
.