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Administrator Guide
Last Updated: 2025-05-30
Define Tax Authority Exceptions from Pay Component Groups (CAN)

Define Tax Authority Exceptions from Pay Component Groups (CAN)

  • Add the province worktag to the pay components in the pay component group.
  • Security:
    Set Up: Payroll (Calculations - Payroll Specific)
    domain in the Core Payroll functional area.
You can set up a pay component group (PCG) to either exclude or include pay components for a tax authority.
  1. Access the
    Maintain Tax Authority Exceptions Pay Component Groups
    task.
  2. Select the
    Pay Component Group
    that requires exceptions.
  3. In the
    Payroll Tax Authority
    field on the
    Exceptions for Taxes
    tab, select the payroll tax authority.
  4. If the pay component should be excluded from the PCG, select the pay component in the
    Exclude Pay Component(s)
    field. If the pay component should be included in the PCG, select the pay component in the
    Include Pay Component(s)
    field.
  5. On the
    Exceptions for Withholding Orders
    tab, specify exceptions to the disposable earnings calculation for withholding orders.
    1. From the
      Payroll Tax Authority
      prompt, select 1 or more tax authorities that calculate disposable earnings differently.
    2. From the
      Withholding Order Type
      prompt, select 1 or more types of withholding orders.
    3. When the pay component:
      • Is part of the group but the tax authority treatment of it doesn't apply, select it from the
        Exclude Pay Component(s)
        prompt.
      • Isn't part of the group but the tax authority treatment of it does apply, select it from the
        Include Pay Component(s)
        prompt.
Workday makes the PCG exceptions that you configure and displays them in the
Exceptions for Taxes
section of the pay component
Non Effective Dated
tab.
Example
The
Pay in Lieu of Notice [CAN]
earning should be included in the
Workers Compensation Exempt
PCG for:
  • British Columbia
  • Quebec
  • Saskatchewan
  • Yukon
Exceptions for taxes for the
Workers Compensation Exempt [CAN]
PCG:
Payroll Tax Authority
Exclude Pay Component(s)
Include Pay Component(s)
British Columbia
Quebec
Saskatchewan
Yukon
Pay in Lieu of Notice [CAN]
With this configuration, Workday includes the
Pay in Lieu of Notice [CAN]
pay component in the
Workers Compensation Exempt [CAN]
PCG when processing payroll for British Columbia, Quebec, Saskatchewan, and Yukon.