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Administrator Guide
Last Updated: 2025-04-18
Record a State Tax Levy Withholding Order (USA)

Record a State Tax Levy Withholding Order (USA)

Record a state tax levy withholding order to begin automatic deductions during payroll processing.
  1. Access the
    Record US Withholding Order for Worker
     task.
  2. Enter the
    Worker
     name and select the
    State Tax Levy (USA)
    Order Type
    .
    Workday dynamically displays the fields required for this type of withholding order.
  3. Complete the
    Order Info
     fields on the right side of the page. Some of these fields are unique to state tax levy withholding orders. As you complete this step, consider:
    Option Description
    Show States Eligible for Federal Tax Levy Calculation
    Applies to state tax levies issued in Arizona, Kentucky, or Virginia.
    Selecting the check box makes the fields for recording Form 668-W information available.
    For Arizona, Workday uses the federal tax levy calculation and the information you enter from Form 668-W to determine the withholding amount.
    For Kentucky and Virginia, you can enter Part 3 data from Form 668-W or select the Amount Type field and enter related information. Workday uses the federal tax levy calculation only if you enter Part 3 data.
    For Virginia, use the
    Pay Period Exemption Amount Override Amount
     field if Part 3 data isn’t applicable.
    Issued In
    Select the state that issued the order.
    Override Withholding Order Rule
    Use this field to override the Workday default tax authority and rule for an individual employee. Workday calculates these withholding order deduction criteria based on that rule:
    • Deduction priority.
    • Disposable earnings.
    • Frequency conversion factor.
    • Maximum amount to withhold.
    Payroll Tax Authority Used
    Displays the Workday-assigned Payroll Tax Authority.
    County FIPS code
    Applies only to Maryland State Tax Levies.
    Deduction Recipient
    Select the third-party recipient of the withholding deduction. If the deduction recipient isn't set up in Workday, select
    Create
     to add the recipient.
    Originating Entity
    Agency or court that issued the withholding order.
    Number of Dependents
    Applies only to:
    • Massachusetts
    • Rhode Island
    • South Dakota
    • West Virginia
    Worker is Laborer or Mechanic
    Applies only to Arkansas.
    Worker Income is Poverty Level
    Applies only to New Jersey.
    Part 3 Effective Date
    Applies to federal tax levies.
    Workday uses the chart in Publication 1494 for the year entered here.
    Pay Period Exemption Override Amount
    For state tax levies issued in Arizona, Kentucky, or Virginia.
    Selecting the check box makes the fields for recording Form 668-W information available.
    For Arizona, Workday uses the federal tax levy calculation and the information you enter from Form 668-W to determine the withholding amount.
    For Kentucky and Virginia, you can enter Part 3 data from Form 668-W or select the
    Amount Type
     field and enter related information. Workday uses the federal tax levy calculation only if you enter Part 3 data.
    For Virginia, use the
    Pay Period Exemption Override Amount
    field if Part 3 data isn’t applicable.
    Form and Revision Number
    For state tax levies issued in Michigan.
    Select whichever of these numbers are printed on the top of the withholding order:
    • 3793 (Rev. 01-16)
    • 3793 (Rev. 05-22)
    • 3793A (Rev. 09-18)
    The number you enter determines what withholding calculation rules Workday uses to calculate the order. You can see the calculation rules for the form and revision numbers on the
    All Payroll Withholding Order Data
     and the
    View Payroll Withholding Order Data
     reports.
    Marital Status
    For federal and Michigan tax levies.
    Marital status from Part 3 of Form 668-W (Notice of Levy on Wages, Salary, and Other Income). Can differ from the worker’s marital status on Form W-4.
    For a Michigan form and these revision numbers, Marital Status is required:
    • 3793 (Rev. 05-22)
    • 3793A (Rev. 09-18)
    Personal Exemptions
    Enter the number of personal exemptions from Part 3 of Form 668-W.
    Additional 65+ or Blind Exemptions
    Enter the number of additional exemptions from Part 3 of Form 668-W.
    Pay Period Exemption Amount
    For federal tax levies.
    Enter the pay period exemption amount from Form 668-W. If Part 3 Effective Date is before 2007-01-01, Workday calculates this amount as equal to the exemption amount override multiplied by the pay period frequency divided by the exemption frequency.
    Termination Date
    For federal tax levies.
    Enter the termination date of the levy from Form 668-D (Release of Levy/Release of Property from Levy). This is the only way to stop withholding for a federal tax levy.
    Good Cause Limit Percent
    Applies only to Indiana creditor garnishments.
    Process Until
    Applies only to Puerto Rico.
    Prorate Until Date
    Applies only to Puerto Rico.
    Memo
    For information only. Use this field to document additional details for this IWO.
  4. Complete the fields on the
    Persons Claimed as Personal Exemptions
     tab.
    Can't be the same as those persons included in a child support order.
    1. Enter
      Dependent Name
      .
    2. Enter the Social Security Number for each person in the
      Dependent Identification Number
       field.
  5. On the
    Attachments
     tab, select relevant attachments.
  6. (Optional) To override the local minimum wage rate set for the worker's location, on the
    Local Minimum Wage
     tab:
    • Select the
      Use Override Rate
       check box.
    • Enter a new minimum wage rate in the
      Local Minimum Wage Amount
       field.
Create ID Definitions and Sequence Generators
FAQ: Withholding Orders (USA)
Reference: Edit Tenant Setup - Payroll