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Administrator Guide
Last Updated: 2025-07-11
Steps: Add Worker Tax Elections (USA)

Steps: Add Worker Tax Elections (USA)

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.
Enter federal, state, and local tax elections for a worker when they:
  • Submit state withholding elections using paper forms instead of using employee self-service (ESS).
  • Work in more than 1 company so you must enter a separate set of tax elections for each company.
  4. Some employees work in multiple states, cities, or counties on an ongoing basis and don't report hours separately for each jurisdiction. You can configure tax calculations and withholding in Workday for each jurisdiction.
  5. Some employees work in states other than the state where their company is located, and those states might have different requirements for tax reporting. You can configure a COE rule for remote workers’ tax elections.
  6. (Optional) Resolve severance pay after termination.
    Workday disconnects the work state from a terminated worker. To resolve severance pay after termination, select the work state for SUI from the
    State Authority (Work)
     prompt in the
    Override Worktags
     section on the
    Run On Demand Payment for Worker
     task.
Workday calculates payroll taxes according to the tax elections and allocations you enter.
  • To view tax data for an employee, access these reports:
    • Worker US Tax Elections
      : Displays federal, state, and local tax withholding information for an employee.
    • Withholding Orders for Worker
      : Lists all withholding orders for an employee.
  • To correct employee 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 an employee works in multiple tax jurisdictions on an ongoing basis, you can configure tax location mapping for your company. You can disable those mappings for a worker entirely or for individual states.