State Income Tax Project

Project Overview

Prior to the implementation of Workday, it wasn’t feasible to withhold state taxes for employees living outside Washington. The State Income Tax Project delivered a software solution supporting the automatic reporting of state income taxes for WSU paychecks, a welcome change for many employees at WSU who live outside Washington. Starting in January 2022, state taxes started being automatically withheld from employee paychecks where state income tax withholding was required.

WSU contracted with Automatic Data Processing, Inc. (ADP), a company specializing in providing tax software solutions, to provide payroll tax reporting functionality. WSU integrated Automatic Data Processing, Inc. (ADP) with Workday to support the automatic withholding of state taxes for employees who live in states with an income tax requirement.

Timeline

AUGUST 2021 – JANUARY 2022

August
  • August 12: Project kick-off
  • August 13: Planning efforts begin
September-November
  • September 10: Planning efforts conclude
  • September 13: System configuration setup for WSU
  • September 17: Testing and validation work begins
December 2021
  • December 14: Testing and validation work concludes
  • December 14: Final validation of system
  • December 15: Last date to update employee work and home address in Workday before January 10 paycheck
January 2022
  • January 1: Last date to update state W-4 (with an effective date of January 1, 2022 or later)
  • January 10: First paycheck with state taxes automatically withheld