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Last Updated: 2024-05-03
Example: Process a Retro Pay Input with Negative Wages (USA)

Example: Process a Retro Pay Input with Negative Wages (USA)

This example demonstrates 1 way to process retro pay input with negative wages for a worker.
Arnold lives and works in Alabama. In the
3/16/23-3/31/23
 period, you applied a tax authority worktag override that assigned Arnold's wages to Georgia. These are the completed pay results for the semi-monthly periods:
  • 03/01/23-03/15-23 - Salary = 10,000, AL taxable wages = 10,000
  • 03/16/23-03/31/23 - Salary = 10,000, Worktag override State:GA, GA taxable wages = 10,000
  • 04/01/23-04/15/23 - Salary = 10,000, AL taxable wages = 10,000
You learn that Arnold worked in Oregon for the
03/16/23-03/31/23
 pay period, not Georgia. You also learn that Arnold now lives and works in Colorado as of 04/16/23 and updated Workday with the new work and resident state. Arnold's next pay period will be taxed in Colorado. You need to move the
03/16/23-03/31/23
 wages you processed with Georgia taxes to the new tax authority, Oregon. So, you process a one-time retroactive pay input that results in a negative earning for Georgia.
Select the
Enable Negative Tax Withholding for Negative Wages on Payroll Result
 check box on the
Edit Tenant Setup - Payroll
 task. See: Reference: Edit Tenant Setup - Payroll.
Security:
Worker Data: Payroll (Payroll Input)
 domain in the Core Payroll functional area.
Security:
Process: Run Batch Calculations (Retro Calculation)
 domain in the Core Payroll functional area.
  1. Identify the pay result tax authorities to adjust. In this example, it's the tax authority for the
    03/16/23-03/31/23 - Salary = 10,000, GA taxable wages = 10,000
     semi-monthly pay period.
  2. Go to the
    Add Payroll Input by Worker
     task. Enter these options:
    Option Description
    Worker
    Arnold
    Pay Component
    Base Pay (Position)
    Start Date
    03/16/2023
    End Date
    03/31/2023
    Processing Defaults
    One-time
    Adjustment
    None of the above
    Prior Period Tax Adjustment
    Selecting this check box indicates you want Workday to calculate negative taxes for pay results with negative taxable wages as a result of retro differences.
    This check box becomes selectable if you selected the
    Enable Negative Tax Withholding for Negative Wages on Payroll Result
     in
    Edit Tenant Setup - Payroll
    .
  3. Click
    OK
    .
  4. In
    Input
    , enter these details:
    Option Description
    Position
    Verify the correct position displays.
    Processing Options
    Verify you selected
    Regular Run Category
    .
    Payroll Worktags
    Enter
    State: Georgia
    .
    Prior Period Tax Adjustment
    Verify you selected the check box.
    Input Details
    • Type
       - enter
      Amount
      .
    • Value
       - enter
      -10000
      .
    Option Description
    Position
    Verify the correct position displays.
    Processing Options
    Verify you selected
    Regular Run Category
    .
    Payroll Worktags
    Enter
    State: Oregon
    .
    Prior Period Tax Adjustment
    Verify you selected the check box.
    Input Details
    • Type
       - enter
      Amount
      .
    • Value
       - enter
      10000
      .
    To ensure a worker receives a tax refund on their negative taxable wages, the worker must have a positive tax balance and you must apply State or Local worktags to the retroactive payroll input that you create to process their negative earnings.
  5. Click
    OK
     and
    Done
    .
  6. Go to the
    Run Retro Pay Calculation
     task. See: Calculate Retro Payroll.
  7. In the task, in
    Pay Run Groups and/or Pay Group Details
    , select Arnold's regular, semi-monthly pay group.
  8. Click
    Done
     and
    Refresh
    .
    The retro pay result shows the negative earnings calculated for Georgia.
Once you include the retro differences in the current pay period result, you can view Arnold's negative taxable wages for Georgia. If Arnold has a tax balance in Georgia, the taxes are refunded.