Along with the implementation of Workday, some employees can expect some minor changes to the way pay is calculated. These are primarily based on differences in rounding. More than 99% of employees will experience no change, or the change will not be more than a few cents. For the small number of employees who will see a greater difference, the change is most often due to tax calculations, rounding, and regulatory compliance.
Examples of these changes include:
- Garnishments: Some employees pay a $3 employer fee with each garnishment deduction. While Human Resource System (HRS) added the fee on top of the deduction, Workday will lower the deduction to accommodate the fee. For example, an employee in HRS with a $200 garnishment deduction would be charged $203. In Workday, this same employee will be charged $200, with $197 going to the garnishment vendor and $3 paying the employer fee.
- Time submission: Rounding to the quarter hour differs on timesheets. Workday rounds at the seven-minute mark: It rounds back at seven minutes or fewer and forward at eight minutes or more.
- Benefits:
- Application of supplemental tax rates create variation due to fewer decimal places permitted in Workday.
- The premium for State Group Life now rounds similarly to other insurance premiums, resulting in a slight change for a limited number of employees.
- The Wisconsin Retirement System (WRS) limits for Highly Compensated Employees are applied within the year instead of being refunded at the end of the year.
- Multiple Positions: Tax withholding for employees with multiple positions between universities may vary slightly.
- Minnesota and Massachusetts tax withholding: This varies based on allowable tax rate applications.
- Foreign National Taxation: Taxes for foreign nationals may vary depending on Workday’s pre-tax deduction settings and treaty calculations, which differ for Resident Aliens in their final pay period.
- Workers who are Nonresident Aliens should be prevented from having non-WI tax reporting/withholding in Workday using an Alternate Work Location.
Email UW-Shared Services with questions about these changes or your payslip.