Example: Adjust Worker Taxes and Wages (USA)

This example demonstrates 1 way to adjust a worker's taxes and wages to accommodate a mid-year move to a different tax authority.

For the first 3 quarters of the year, Terry pays Georgia resident and work taxes. On July 1, Terry moves to North Carolina, but doesn’t notify you until October 5, in the current period.

You need to move Terry's wages and taxes for July through September to the appropriate tax jurisdiction, in North Carolina. It’s too late to do a reversal, so you decide to process a manual additional payment for the affected quarter. Although you could process an on-demand or on-cycle payment instead, you select a manual payment because you don't want to generate a check number.

In this scenario, you're moving all Q3 Georgia wages and tax to North Carolina.

Security: Process: Off Cycle (Manual Payment)
domain in the Core Payroll functional area.

Use the

Pay Calculation Results for Worker

report to review results within the date range and determine which pay results calculated for Georgia require adjustment.

Because you're adjusting all Q3 wages and taxes in this example, you can use the

Tax Filing Quarterly Data for Workers

report for this step.

Use the

Tax Filing Quarterly Data for Workers

report to identify the Georgia state withholding amounts. In this example, you identify these wages and tax:

Gross Wages	25,000
Subject Wages	22,500
Taxable Wages	22,500
Tax Withheld	1,173

Access the

Run Manual Payment for Worker

task.

Select the period where you want to apply the adjustments. For a previous period, you select

Prior Period

Select

Create Additional Payment

Enter the

Payment Date

, ensuring the date is within the period that should include the taxes. Workday updates the pay accumulation and pay balance results in the period that includes this payment date. For this example, you select September 30, the last day of Q3.

In the

Input

section:

Record the reversal of the withholding taxes paid to Georgia.

Select State Withholding (Work)
in the

Pay Component

field and add the

Worktag State:

Georgia
.

Add 4 rows in the

Input Details

grid and enter each type and amount you previously determined as a negative number:

Tax Withheld	-1,173
Gross Wages	-25,000
Subject Wages	-22,500
Taxable Wages	-22,500

Record the taxes to report to North Carolina. Add 4 rows in the

Input Details

grid and enter each wage type and amount you previously determined as a positive number:

Tax Withheld	1,173
Gross Wages	25,000
Subject Wages	22,500
Taxable Wages	22,500

Workday updates Terry's taxes and wages for the quarter to reflect the correct tax authority. Workday also updates the period's pay accumulations and pay balances based on the period and payment date.