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Administrator Guide
Last Updated: 2025-02-21
Steps: Process Retro Differences from Current Tax Authority Change (CAN, USA)

Steps: Process Retro Differences from Current Tax Authority Change (CAN, USA)

You can make changes to a worker's current tax authority for a supported retro event. Workday then calculates retro differences for earnings, and deductions and forwards it to the current pay period.
  1. Access the
    Run Pay Calculation task
    .
    Process retro differences in on-cycle payments and forward the retro differences to the current pay period, when retro results have:
    • The same or different source tax authorities as the current tax authorities for Payroll for Canada.
    • The same source tax authorities as the current tax authorities for Payroll for the U.S.
  2. (Optional for Payroll for the U.S.)
    Access the Edit Tenant Setup - Payroll
     task and select the
    Pay / Retro Calculations
    Retro Calculations - USA
    Enable Retro Processing from Different Tax Authorities to On-Cycle Payroll
     check box.
    When you select the check box, Workday forwards all retro differences to on-cycle payroll and calculates taxes based on your current period tax authorities. In addition, if you'd rather use off-cycle payroll, you still have the ability to do so.
    Eligibility for on-cycle includes retro results, where the source tax authorities and company are the same as the worker's current primary position.
  3. Process retro differences as on-demand additional payments in a tax authority other than a worker's current primary job. You can either:
    • Run Retro Pay Complete for Subset of Workers
       from the
      Retro Calculation Processing Report
      . Select the
      Exclude Retro Results Already Included in On-cycle
       check box to ensure that you don't create any off-cycle inputs for the already paid retro differences. Or
    • Access the
      Run On Demand Payment for Worker
       task and select the
      Create Additional Payment
       check box to add override worktags matching the previous source tax authorities.
    To process workers with multiple jobs in multiple pay groups, you must select the
    Enable Retro Processing in Primary Pay Group
     check box on the
    Edit Tenant Setup – Payroll
     task.