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Administrator Guide
Last Updated: 2024-11-15
Maintain Tax Treaty Information for a Worker (USA)

Maintain Tax Treaty Information for a Worker (USA)

Security:
Worker Data: Payroll (Company Specific) - USA
 domain in USA Payroll functional area.
Add or update nonresident alien (NRA) tax treaty information. Workday applies the tax treaty rules when it calculates withholding for certain types of income.
You can use the
Put Payroll Worker Tax Treaty
 web service to load tax treaty information for multiple workers from a third-party application.
  1. Access the
    Maintain Worker Tax Treaties
     task.
  2. As you complete the task, consider:
    Option Description
    Tax Residency Country
    The worker's country of residence that has a tax treaty with the U.S.
    Income Code
    The 2-digit IRS code for the type of income earned.
    Income Code Subtype
    Applies to income code 16. Identify if the income is
    Qualified
     (not subject to NRA withholding) or
    Non Qualified
    .
    If
    Non Qualified
    , select
    Eligible for Withholding Allowance
     and, if applicable, enter the
    Withholding Rate
    .
    Treaty Benefit Start Date
    The date when the treaty eligibility period starts. This is the time period when the worker receives treaty benefits.
    Treaty Benefit End Date
    The date when the treaty eligibility period ends. Workday reports wages earned after this period in the applicable year on W-2 forms.
    You can use this field to end a tax treaty rule. Example: You add nonresident alien tax treaty information for a worker on August 1, 2024. When you need to end the treaty, you update this prompt and select
    07/31/2025
    . Workday no longer applies the nonresident alien tax treaty rule as of the
    Treaty Benefit End Date
     when calculating income for that worker.
When you calculate payroll and the worker is identified as a nonresident alien on the
Worker US Tax Elections
 report, Workday applies the tax treaty rules.
To review a worker's tax treaty information, take the related action on the worker
Payroll
View Tax Treaties
.