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Administrator Guide
Last Updated: 2026-05-01
Record a State Tax Levy Withholding Order (USA)

Record a State Tax Levy Withholding Order (USA)

Enter the company
Tax ID
 number on the
Tax IDs
 tab of the
Edit Company Tax Details
 task.
Security:
Worker Data: Payroll (Income Withholding Orders) - USA
 domain in the USA Payroll functional area.
Record a state tax levy withholding order to begin automatic deductions during payroll processing.
  1. Access the
    Record US Withholding Order for Worker
     task.
  2. Enter the
    Worker
     name and select the
    State Tax Levy (USA)
    Order Type
    .
    Workday dynamically displays the fields required for this type of withholding order.
  3. Complete the
    Order Info
     fields. These fields are common to all withholding order types. As you complete this task, consider:
    Option Description
    Case Number
    Enter the
    Case Number
     listed on the order. It must be unique for the:
    • Company.
    • Order date.
    • Order type.
    • Worker.
    You can't change this number once the order has pay results.
    Withholding Order ID
    If you defined a default withholding order ID for integrations, Workday sets that as the default.
    To define a default
    Withholding Order ID
    , see Create ID Definitions and Sequence Generators.
    To associate the withholding order ID you formatted, see the
    ID Sequence Generators
     section of the Reference: Edit Tenant Setup - Payroll topic.
    When you define a sequence generator using these tasks, you can leave the
    Withholding Order ID
     field blank. Workday enters the generated ID when you complete the task.
    Order Number
    Identification number on the order. Some states use the term
    Order Identifier
    .
    Order Date
    Issue date of the order or judgment. When the order includes a serve date, enter that date instead.
    Date Received
    Date and time your company received the withholding order, as stamped on the form. Workday requires this date for auditing purposes.
    Begin Date
    Workday deducts the initial withholding amount in the pay period that includes the
    Begin Date
    . To determine this date, follow the state laws of the employee’s principal place of employment.
    Workday deducts the full pay period amount, even if the begin date is mid pay period.
    You can define a later begin date for fees on the
    Order Fees
     tab.
    End Date
    Doesn't apply to child support orders or federal tax levies.
    Workday deducts the final withholding amount (including any agency or employer fees) in the pay period that's before the 1 with the
    End Date
    .
    Regardless of the
    End Date
    , for most types of withholding orders, Workday stops processing a withholding order as soon as it is:
    • Terminated.
    • Marked inactive.
    • Repaid (the worker has satisfied the total debt amount).
    To stop federal and state tax levies after receiving a release from the tax authority:
    1. Edit the order.
    2. Select the
      Inactive Order
       check box.
    Workday doesn't stop processing tax levies until you select this check box.
    You can define an earlier end date for agency and employer fees on the
    Order Fees
     tab.
    Company
    Displays the company the employee is in as of the date entered in the
    Date Received
     field.
    Select the company when:
    • The employee has a future hire date.
    • The employee has positions in multiple companies on the
      Date Received
      .
    • You've terminated the employee.
    You can't change the company once there are completed income withholding order pay results.
    Inactive Order
    Select to make the order inactive.
    For termination support orders, select to reactivate the original support order.
    Amount Type
    Select the amount type indicated on the order.
    Pay Period Amount
    Doesn't apply to state tax levies issued in Kentucky or Virginia. Usage varies by order type. For orders that specify the
    Amount Type
    Amount on Order
    , enter the total amount to withhold each pay period as specified on the order.
    Amount as Percent
    Doesn't apply to federal tax levies. When the
    Amount Type
     on the order is
    Percent of Disposable Earnings
     or
    Percent of Gross
    , enter the percent to withhold from the worker's income.
    Pay Period Frequency
    Frequency of the pay period amount as indicated on the withholding order, such as weekly or monthly. Workday calculates the amount to deduct in each pay period when a worker's pay frequency differs from the frequency on the withholding order.
    Example: Alan has a withholding order for 200 USD monthly and he's paid weekly. To calculate the deduction amount, Workday:
    • Annualizes the pay period amount based on the pay period frequency of the withholding order (200 x 12 months = 2400 USD).
    • Deannualizes the result based on the pay period frequency (2400/52 = 46.15 USD per week) of Alan.
    Total Debt Amount
    Total amount of the worker's debt or the balance due as indicated on the order.
    This is required for these order types:
    • Creditor garnishment.
    • Federal administrative wage assignment.
    • Federal tax levy.
    • State tax levy.
    • Student loan.
    • Wage assignment.
    If the order doesn't specify the total amount, enter 999,999.00.
    When a bankruptcy order has no total amount, Workday continues to take the deduction until the
    End Date
     or until the order is made inactive.
    Monthly Limit
    Workday supports monthly limits for allocations and order amount calculations for all withholding order types except:
    • Federal tax levies.
    • State tax levies.
    If an order provides a monthly deduction amount, Workday ensures that the deduction amount doesn't exceed the monthly limit.
    If a previous pay period in the current month didn't have sufficient funds, Workday takes up to that amount to recoup the funds. Workday checks the balances until it reaches the monthly limit.
    Process in Regular Pay Period
    Applies only to support orders that are a lump sum.
    Select to withhold wages only in regular pay runs; clear to withhold wages only in nonregular pay runs, such as bonus runs.
  4. Complete the
    Order Info
     fields on the right side of the page. Some of these fields are unique to state tax levy withholding orders. As you complete this step, consider:
    Option Description
    Show States Eligible for Federal Tax Levy Calculation
    Applies to state tax levies issued in Arizona, Kentucky, or Virginia.
    Selecting the check box makes the fields for recording Form 668-W information available.
    For Arizona, Workday uses the federal tax levy calculation and the information you enter from Form 668-W to determine the withholding amount.
    For Kentucky and Virginia, you can enter Part 3 data from Form 668-W or select the Amount Type field and enter related information. Workday uses the federal tax levy calculation only if you enter Part 3 data.
    For Virginia, use the
    Pay Period Exemption Amount Override Amount
     field if Part 3 data isn’t applicable.
    Issued In
    Select the state that issued the order.
    Override Withholding Order Rule
    Use this field to override the Workday default tax authority and rule for an individual employee. Workday calculates these withholding order deduction criteria based on that rule:
    • Deduction priority.
    • Disposable earnings.
    • Frequency conversion factor.
    • Maximum amount to withhold.
    Payroll Tax Authority Used
    Displays the Workday-assigned Payroll Tax Authority.
    County FIPS code
    Applies only to Maryland State Tax Levies.
    Deduction Recipient
    Select the third-party recipient of the withholding deduction. If the deduction recipient isn't set up in Workday, select
    Create
     to add the recipient.
    Originating Entity
    Agency or court that issued the withholding order.
    Number of Dependents
    Applies only to:
    • Massachusetts
    • Rhode Island
    • South Dakota
    • West Virginia
    Worker is Laborer or Mechanic
    Applies only to Arkansas.
    Worker Income is Poverty Level
    Applies only to New Jersey.
    Part 3 Effective Date
    Applies to federal tax levies.
    Workday uses the chart in Publication 1494 for the year entered here.
    Pay Period Exemption Override Amount
    For state tax levies issued in Arizona, Kentucky, or Virginia.
    Selecting the check box makes the fields for recording Form 668-W information available.
    For Arizona, Workday uses the federal tax levy calculation and the information you enter from Form 668-W to determine the withholding amount.
    For Kentucky and Virginia, you can enter Part 3 data from Form 668-W or select the
    Amount Type
     field and enter related information. Workday uses the federal tax levy calculation only if you enter Part 3 data.
    For Virginia, use the
    Pay Period Exemption Override Amount
    field if Part 3 data isn’t applicable.
    Form and Revision Number
    For state tax levies issued in Michigan.
    Select whichever of these numbers are printed on the top of the withholding order:
    • 3792 (Rev. 05-22) / Form 5796-State Agency Debt Levy (Rev. 05-22)
    • 3793 (Rev. 01-16)
    • 3793 (Rev. 5-22) / Form 5796-Tax Levy (Rev. 5-22)
    • 3793A (Rev. 09-18)
    The number you enter determines what withholding calculation rules Workday uses to calculate the order. You can see the calculation rules for the form and revision numbers on the
    All Payroll Withholding Order Data
     and the
    View Payroll Withholding Order Data
     reports.
    Marital Status
    For federal and Michigan tax levies.
    Marital status from Part 3 of Form 668-W (Notice of Levy on Wages, Salary, and Other Income). Can differ from the worker’s marital status on Form W-4.
    For a Michigan form and these revision numbers, Marital Status is required:
    • 3793 (Rev. 05-22)
    • 3793A (Rev. 09-18)
    Personal Exemptions
    Enter the number of personal exemptions from Part 3 of Form 668-W.
    Additional 65+ or Blind Exemptions
    Enter the number of additional exemptions from Part 3 of Form 668-W.
    Pay Period Exemption Amount
    For federal tax levies.
    Enter the pay period exemption amount from Form 668-W. If Part 3 Effective Date is before 2007-01-01, Workday calculates this amount as equal to the exemption amount override multiplied by the pay period frequency divided by the exemption frequency.
    Termination Date
    For federal tax levies.
    Enter the termination date of the levy from Form 668-D (Release of Levy/Release of Property from Levy). This is the only way to stop withholding for a federal tax levy.
    Good Cause Limit Percent
    Applies only to Indiana creditor garnishments.
    Process Until
    Applies only to Puerto Rico.
    Prorate Until Date
    Applies only to Puerto Rico.
    Memo
    For information only. Use this field to document additional details for this IWO.
  5. Complete the fields on the
    Persons Claimed as Personal Exemptions
     tab.
    Can't be the same as those persons included in a child support order.
    1. Enter
      Dependent Name
      .
    2. Enter the Social Security Number for each person in the
      Dependent Identification Number
       field.
  6. Complete the fields on the
    Order Fees
     tab. As you complete this step, consider:
    Option Description
    Fee Type
    Select the applicable fee type.
    Withholding Order Fee Amount Type
    Select the applicable fee amount type.
    Fee Amount/Percent
    Enter the fee amount to be paid. Workday maintains tax authority employer fee limits, but doesn't maintain agency fee limits. Although Workday doesn't enforce
    Fee Amount/Percent
     limits set by tax authorities, it does provide a warning to let you know if the amount you enter exceeds the limit.
    You can set up Workday to deduct partial fees when taking the entire fee causes the deduction to exceed the maximum amount to withhold. Select the
    Allow Partial Fees
     check box on the
    Edit Tenant Setup - Payroll
     task.
    Fee Monthly Limit
    Available only for these
    Fee Types
    :
    • Per Pay Period Employer Fees
    • Per Pay Period Agency Fees
    Workday provides a warning if the fee exceeds the state-defined monthly limit.
    Fee Schedule
    You can select the
    Override Fee Schedule
     check box to specify when you want the fee deducted. When you select this check box, you can enter the
    Fee Begin Date
     and
    Fee End Date
    .
  7. On the
    Attachments
     tab, select relevant attachments.
  8. (Optional) To override the local minimum wage rate set for the worker's location, on the
    Local Minimum Wage
     tab:
    • Select the
      Use Override Rate
       check box.
    • Enter a new minimum wage rate in the
      Local Minimum Wage Amount
       field.
Workday deducts the full amount in the initial and final periods, when admitted under state and federal law.
You can perform these related actions on the withholding order:
Option
Description
Edit
Modify a withholding order.
Delete
You can delete a withholding order that doesn't have payroll input or completed results.
Edit Override Withholding Order Setup
Applies only to:
  • Creditor garnishments.
  • State tax levies.
  • Support orders (including lump sum).
  • Wage assignments.
Used to change the tax authority for all withholding orders of the specified type in a tax authority.
Override Priority
For employees with multiple orders, Workday assigns a processing priority to each order based on state and federal regulations. Use this task to change the assigned priority.
View Deduction History
View deduction details.
Review payroll results to ensure that the correct deduction and fee amounts were withheld.