Concept: Override Withholding Order Rule (USA)

Withholding Order Processing Rules

Income withholding order (IWO) deductions are based on rules established by one of these governing tax authorities:

Federal.

Issued state.

Work state.

Resident state.

IWO calculation and processing criteria controlled by the rules includes:

Deduction priority.

Disposable earnings.

Frequency conversion factor.

Maximum amount to withhold.

Workday automatically assigns the payroll tax authority and applies the rules accordingly.

Types of Withholding Order Rules

Withholding Order Rule	Description
Federal	Uses the rules established by the federal government for each withholding order type.
Issued State	Uses the rules established by the Issued State which is entered on the Record US Withholding Order for Worker task.
Work State	Uses the rules established by the Work State , which is defined in the employee's Work Contact Information .
Resident State (Available only at the worker level)	Uses the rules established by the employee's Resident State , which is defined in Home Contact Information for the worker.

Overriding the Withholding Order Rule

You can override the assigned rule for these IWO types:

Creditor garnishment.

State tax levy.

Support order (including Lump Sum).

Wage assignment.

You can override the withholding order rule at the state or worker level for specific withholding order types:

State-Level Override	Worker-Level Override
Creditor Garnishment State Tax Levy Wage Assignment	Creditor Garnishment State Tax Levy Support Order (including Lump Sum) Wage Assignment

Methods Used to Override a Withholding Order Rule

Rule Override Method	How to Override	Result
For a single IWO for a worker	When initially recording the IWO, select the desired rule in the Override Withholding Order Rule field. Or, edit an existing IWO to override the withholding order rule.	The rule applies only to the modified IWO.
For all IWOs of a specified type for a single tax authority	Access the Edit Override Withholding Order Setup task and select the desired rule in the Withholding Order Rule field.	You change the rule for all IWOs of that type in the tax authority. Use this task with caution. Using this method changes the rule for all IWOs of that type in the tax authority. Review existing IWOs in the state to ensure the rules that you have set up are correct.

Rule Override Hierarchy

Workday uses this hierarchy for rule overrides:

Override Level	Hierarchy
Administrator-Level	Overrides the Workday-delivered rule.
Worker-Level	Overrides the: Workday-delivered rule. Administrator-level override.

Withholding Order Reports

You can use these reports to review IWO data:

Report	Description
All Payroll Withholding Order Data	Review the IWO rule Workday automatically assigns to each withholding order type.
View Override Withholding Order Setup	Review or edit the rules and pay components entered on the Edit Override Withholding Order Setup task.