Concept: Prior Period Tax Adjustment Calculator

The prior period tax adjustment (PPTA) calculator:

Adjusts the primary work and resident tax authority wages and taxes for a worker when you process retroactive changes.

Produces tax and wage differences for you.

Uses the earning and deduction amounts from the original payroll result to determine the tax authority wage and tax differences.

When determining the tax authority wage and tax limits for the period that you're adjusting, the PPTA calculator:

Includes balances from other payroll results completed before the payroll result that you’re adjusting.

Includes balances from other tax adjustment results that are for payroll results you’ve already adjusted with the PPTA calculator before the payroll result that you’re adjusting.

Recognizes the tax adjustment result as being part of the original pay result for wage and tax limit purposes.

The PPTA calculator doesn’t include balances from pay results that were completed after the pay result you’re adjusting. The exception is for tax adjustment results, which Workday treats as if they’re completed at the same time as the original pay result, regardless of:

Whether the tax adjustment result is completed in a current or prior period.

The completion date and time of the tax adjustment result.

On the

Prior Period Tax Adjustment Calculator

task, you can use these tabs to validate the differences you see before creating your tax adjustment result:

Tab	Description
Tax Adjustment Summary	Displays the employee tax difference and the tax authority differences that Workday will use to create the tax adjustment result. You can: Override the newly calculated taxes in this tab before creating the tax adjustment result. Define the period and payment date for the tax adjustment result.
Tax Adjustment Details	Displays information about the earnings and deductions paid on the original pay result. You can: Verify the earning and deduction amounts that the PPTA calculator is using as the basis for recalculating the tax authority wages and taxes of the worker. Review the original, new, and difference amounts for all impacted tax authorities.

Retroactive Changes to a Worker’s Position and Location

You might need to take additional steps to use the PPTA calculator if:

Scenario	Solution
A position and location have both been retroactively changed for a worker.	Select Personal Data Change Work Contact Information from the related actions menu of the profile of the worker. Enter an Alternative Work Location using the address of their new work location. See Steps: Set Up Contact Information. Adjust the pay result of the worker with the PPTA calculator. See Steps: Adjust Prior Period Taxes.
A worker needs both their position and location retroactively changed.	Change the location of the worker's job. See Change Location. Create an on-demand additional tax adjustment result with the PPTA calculator. See Steps: Adjust Prior Period Taxes. Change the worker's position. See Transfer, Promote, or Change Job.