Tax Improvement Projects
Tax 2.0
What: We’re rebuilding how Workday calculates taxes for WSU.
When: October 2022
Why: We want Workday to do tax work for us. When we launched, we had a particular set of account posting rules and requirements for how users enter Spend Category SC00199 on taxable expense documents. All of these rules calculate our sales tax liability, and netted our compensatory tax liability into a central account. This change will ensure we use the correct amounts when remitting taxes to the state, as a new central process will mitigate any discrepancies in tax.
What’s changing: How Workday calculates taxes will be more streamlined and efficient. This will replace many manual processes with automated ones. This project will change account posting rules and affect the way we interact with requisitions, purchase orders, supplier invoices, and procurement card verifications.
1099 Tax Form
What: We’ll enable a Workday-delivered process that makes it easier to view and process payments that are reportable to the IRS.
When: November 2022
Why: It has been difficult to report on 1099 eligible supplier payments, which are needed for the tax forms we provide to our suppliers for goods or services. Workday can calculate and generate these forms for us, but it needs more information. We’re updating the supplier records to indicate whether or not they are eligible for a 1099. This must be done for our entire supplier catalog. We also have to tell Workday which spend categories are reportable, and at what threshold payments should be included.
What’s changing: In the future, Workday will generate Tax Form 1099 for our eligible suppliers. Some spend categories may change or have their descriptions enhanced to clarify usage. We’ll know more once we complete mapping spend categories.
Spend Categories
What: Currently tax guidance for default tax applicability can be applied at the spend category level. We will introduce a new level, called purchase items, to determine the tax applicability for a purchase in alignment with Washington state tax rules.
When: Multiple phase project; launch TBD
Why: We’re trying to take the tax guidance off of the spend category level and create a more granular approach of tax definitions at the purchase item level. Instead of having to read and make conscious decisions, users will pick the item, and Workday will calculate everything in the background.
What’s changing: Users will need to enter information differently into Workday, choosing purchase items rather than spend categories.