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Administrator Guide
Last Updated: 2024-11-01
Add Worker Federal Tax Elections (USA)

Add Worker Federal Tax Elections (USA)

Set up company federal taxes.
Verify that the worker:
  • Is in a company and a pay group.
  • Has a valid work and primary home address in the U.S.
Security:
Worker Data: Payroll (Company Specific) - USA
 domain in the USA Payroll functional area.
You can enter federal tax elections for a worker when you receive a Lock in Letter from the federal government or when they:
  • Submit withholding elections using a paper Form W-4 instead of using employee self-service (ESS).
  • Have a Federal Tax Levy withholding order, which prevents them from using ESS. In this case, the payroll administrator can still make tax elections.
  • Work in more than 1 company. Enter a separate set of tax elections for each company.
These web services support loading and retrieving federal tax elections:
  • Get Payroll Federal W-4 Tax Election
  • Get Payroll FUTA (FUI) Elections
  • Get Payroll Payee FICAs (FICA OASDI and Medicare exemption information)
  • Put Payroll Federal W-4 Tax Election
  • Put Payroll FUTA (FUI) Elections
  • Put Payroll Payee FICA (FICA OASDI and Medicare exemption information)
The web services for Payroll Payee FICA include any Reason for Exemption.
The
Put Payroll Payee FICA
 web service:
  • Considers worker FICA exemption data and adds or removes exemption reasons to determine worker exemption status.
  • Uses the processing position if you don't specify a position for the worker and the payroll processing position rules are set up to use position override by default.
  1. Access the
    Add Worker US Tax Elections
     task.
  2. As you complete the task, consider:
    Option Description
    Company
    Displays the employee's company as of the
    Effective Date
    .
    Select a company as of the
    Effective Date
     when the employee:
    • Has a future hire date.
    • Is terminated.
    • Has positions in multiple companies.
    Work State
    Displays the state from the employee's primary work address if it exists, or the location of the employee's primary or processing position.
    Home State
    Displays the state from the employee's primary home address.
    Additional States
    Select additional states in which the employee works.
    Your selections apply to taxes calculated for payroll input when:
    • You select the tax authority worktag for the additional state or its localities on payroll input.
    • Workers have ongoing multiple work jurisdictions specified on the
      Tax Allocations
       tab.
    • Workers are
      MSRR Exempt
      . Select the domicile state where the employee pays taxes.
  3. As you complete the
    Federal
     tab, consider:
    Option Description
    Marital Status
    Select a valid status.
    Number of Allowances
    Accepts up to 5 digits for 2019 and earlier.
    Extra Withholding
    Workday calculates additional federal withholding on regular on-cycle payments unless it’s supplemental pay only.
    For nonregular run categories, Workday doesn't deduct additional amounts. You can include the
    Additional Amount
     pay component related calculation as payroll input. Example: Worker has a bonus paid in an on-cycle, nonregular run category. You want Workday to withhold an additional amount, so you add the
    Additional Amount
     PCRC to the
    Federal Withholding [USA]
     deduction as payroll input tied to the specific payroll result.
    Workday displays the additional amount elected on the payroll administrator view of pay results, but it might not reflect the total amount withheld due to net pay validation.
    For on-demand additional payments paid in regular run categories, Workday deducts when you:
    • Select the
      Take Additional Tax Withholding Amounts
       check box.
    • Enter input for the
      Additional Amount
       PCRC.
    Multiple Jobs or Spouse Works
    Select to update the withholding calculation for the worker to account for multiple jobs or their spouse working.
    Total Dependent Amount
    Accepts up to 9 digits.
    Other Income
    Accepts up to 9 digits.
    Deductions
    Accepts up to 9 digits.
    Nonresident Alien
    Limits
    Marital Status
     to
    Single
     and
    Number of Allowances
     to
    1
    . You can change the marital status and number of allowances for a nonresident alien (NRA), but a warning displays.
    Select
    Exempt from NRA - Additional Amount
     to exclude the additional amount from the employee wages when calculating federal withholding.
    Workers can select this check box through self-service when completing their tax elections.
    Lock In Letter
    When the IRS issues a Lock in Letter, select this check box to prevent the employee from making withholding changes through employee self-service.
    Exempt
    The employee remains exempt from federal withholding until you enter different instructions. Workday doesn't automatically reset employee exempt status at the beginning of each year.
    No Wage/No Tax
    Select this check box to prevent Workday from resolving federal withholding.
  4. As you complete the
    Unemployment Insurance
    ,
    FICA Medicare
    , and
    FICA OASDI
     sections, consider:
    Option Description
    Exempt
    Select this check box if applicable.
    Apply to Worker
    Select this check box when the worker is exempt from FICA Medicare or FICA OASDI and you want to apply the exemption throughout Workday.
    The exemption from FICA Medicare or FICA OASDI continues when you use the
    Job Change
     business process to move the worker to a new job when you select these check boxes:
    • Apply to Worker
    • Exempt
    • Exempt Reason
    Access the
    All Workers that are Exempt from FICA OASDI or FICA Medicare
     report for more information on workers exempt from FICA Medicare or FICA OASDI.
You can view tax data for an employee by accessing these reports:
Report
Description
Payee W-4 Withholding IRS Report
Displays an employee's W-4 data.
Withholding Orders for Worker
Displays an employee's federal and state tax levies.
Worker US Tax Elections
Displays an employee's federal, state, and local tax withholding information.
  • To correct tax elections, access the
    Worker US Tax Elections
     report. In the first column, select
    Worker Tax Election
    Edit
     from the related actions menu.
  • When an employee changes companies, enter their tax elections for the new company.
  • When a worker is no longer exempt from Unemployment Insurance, FICA Medicare, and FICA OASDI, you can remove the exemption. Add a blank new row to the relevant section. Don't select the
    Apply to Worker
     or exempt check boxes.
  • Workday disconnects the work state from a terminated worker. To resolve severance pay after termination, access the
    Run On Demand Payment for Worker
     task, and in the
    Override Worktags
     section, select the work state for SUI from the
    State Authority (Work)
     prompt.