Concept: Withholding Orders (USA)

Income Withholding Order (IWO) Types: Workday provides rules for processing these types of income withholding orders (IWOs):
Bankruptcy
Creditor Garnishment
Federal Administrative Wage Garnishment
Federal Student Loan
Federal Tax Levy
State Tax Levy
Support Order (including Lump Sum)
Wage Assignment

How Workday Calculates IWO Deductions: Based on state and federal rules, Workday:

Determines the amount to withhold from disposable earnings, including any agency and employer fees.
Applies the withholding limit.
Sets garnishment priorities.
Follows statutory rules to determine what to withhold for each order when:
An employee has multiple orders.
The amount to withhold exceeds the limit.; Workday automatically assigns the payroll tax authority. The withholding order calculation is based on these tax authority-defined criteria:
Deduction priority.
Disposable earnings.
Frequency conversion factor.
Limits.
Maximum amount to withhold.; These criteria for all states are listed on the
View Payroll Withholding Order Data
report. This report displays the withholding order rule used for each IWO type.
IWO Allocation Methods: Workday assigns the allocation method to the IWO based on the state rules for the IWO type. The allocation method specifies the allocation priority for workers with multiple IWOs. You can view the allocation types and the priority order of each on the
View Payroll Withholding Order Data Allocation
report. However, this report doesn't provide the context of state IWO calculation rules. To troubleshoot the allocation calculation with the context of the IWO calculation rules that Workday maintains, access the
View Payroll Withholding Order Data
report.

Override Withholding Order Setup: You can override the assigned payroll tax authority for these U.S. IWO types:
Creditor Garnishment
State Tax Levy
Support Order
Wage Assignment; For details, see the topic Override Withholding Order Rule (USA)
.

IWO Priority: IWO priority indicates which IWO Workday processes first when a worker has multiple IWOs. Workday delivers these IWO priorities, with the lower numbers indicating higher priority:
200 - Support
201 - Lump Sum
300 - Bankruptcy
400 - Federal Tax Levy
500 - Creditor Garnishment
500 - Federal Administrative Wage Assignment
500 - State Tax Levy
500 - Student Loan
600 - Wage Assignment

You can override the delivered withholding order priorities using the
Withholding Order
Override Priority
related action on the withholding order.; You can override the priority order assigned to any order type except support orders. See the topic Override Withholding Order Priority
.

View IWOs: You can view active and past withholding orders in the
Pay
Withholding Orders
tab on the worker profile. Workers can't view their withholding orders.

You can upload the official copy of the withholding order when creating or editing the IWO in Workday, from the attachments tab.

Workday doesn't keep a record of deleted IWOs.
Create a Payment for IWOs: You can use the payroll third-party payments feature to pay and settle IWOs. For more information, see: Create a Payment for an Income Withholding Order.