New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Essential Year-End Tax Strategies for Workday Employees: What You Need to Know Before 2023

Healthcare Provider Update: Healthcare Provider for Workday: Workday, the leading provider of enterprise cloud applications for finance and human resources, typically partners with large health insurance carriers such as UnitedHealthcare, Anthem (Elevance Health), and Aetna to deliver healthcare benefits to its employees. These partnerships ensure that employees have access to comprehensive healthcare plans that cater to a diverse workforce. Potential Healthcare Cost Increases in 2026: As we move into 2026, employees at Workday may face significant hikes in their healthcare costs. With projections indicating premium increases exceeding 60% in some states and a potential average rise of 18% nationally, many employers, including Workday, are likely to adjust their benefits structure. This shift could result in higher deductibles and out-of-pocket expenses for employees, particularly if enhanced federal subsidies expire. Workers are encouraged to stay informed about benefit changes and strategize their healthcare spending to mitigate these impending cost increases. Click here to learn more

Here are some things for Workday employees and retirees to consider as they weigh potential tax moves between now and the end of the year.

1. Defer income to next year
Workday employees must consider opportunities to defer income to 2023, particularly if you think you may be in a lower tax bracket then. For example, you may be able to defer a year-end bonus or delay the collection of business debts, rent, and payments for services. As a Workday employee, doing so may enable you to postpone payment of tax on the income until next year.

2. Accelerate deductions
Workday employees and retirees should also look for opportunities to accelerate deductions into the current tax year. If you itemize deductions, making payments for deductible expenses such as medical expenses, qualifying interest, and state taxes before the end of the year (instead of paying them in early 2023) could make a difference on your 2022 return.

3. Make deductible charitable contributions
As a Workday employee, if you itemize deductions on your federal income tax return, you can generally deduct charitable contributions, but the deduction is limited to 50% (currently increased to 60% for cash contributions to public charities), 30%, or 20% of your adjusted gross income (AGI), depending on the type of property you give and the type of organization to which you contribute. (Excess amounts can be carried over for up to five years.)

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4. Bump up withholding to cover a tax shortfall
As a Workday employee, if it looks as though you will owe federal income tax for the year, consider increasing your withholding on Form W-4 for the remainder of the year to cover the shortfall. Time may be limited for Workday employees to request a Form W-4 change and for their employers from Workday to implement it in time for 2022. The biggest advantage in doing so is that withholding is considered as having been paid evenly throughout the year instead of when the dollars are actually taken from your paycheck. This strategy can be implemented by Workday employees to make up for low or missing quarterly estimated tax payments.

5. Save more for retirement
Deductible contributions to a traditional IRA and pre-tax contributions to a Workday-sponsored retirement plan such as a 401(k) can reduce your 2022 taxable income. As a fortune 500 employee, if you haven't already contributed up to the maximum amount allowed, consider doing so. For 2022, Workday employees can contribute up to $20,500 to a 401(k) plan ($27,000 if you're age 50 or older) and up to $6,000 to traditional and Roth IRAs combined ($7,000 if you're age 50 or older).* The window to make 2022 contributions to a Workday-sponsored plan generally closes at the end of the year, while you have until April 18, 2023, to make 2022 IRA contributions.

*Roth contributions are not deductible, but Roth-qualified distributions are not taxable.

6. Take the required minimum distributions
If you are a Workday employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and Workday-sponsored retirement plans (special rules apply if you're still working and participating in Workday's retirement plan). You have to make the withdrawals by the date required — the end of the year for most individuals. The penalty for failing to do so is substantial: 50% of the amount that wasn't distributed on time. As a fortune 500 employee, making these distributions in a timely manner is essential as to avoid the late penalty.

7. Weigh year-end investment moves
Workday employees and retirees shouldn't let tax considerations drive investment decisions. However, it's worth considering the tax implications of any year-end investment moves that you make. For example, if you have realized net capital gains from selling securities at a profit, you might avoid being taxed on some or all of those gains by selling losing positions. As a Workday employee, any losses over and above the number of your gains can be used to offset up to $3,000 of ordinary income ($1,500 if your filing status is married filing separately) or carried forward to reduce your taxes in future years.

Tags: Financial Planning , Tax , Retirement , 2022

What is the 401(k) plan offered by Workday?

The 401(k) plan at Workday is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

How can I enroll in the Workday 401(k) plan?

Employees can enroll in the Workday 401(k) plan by accessing the benefits portal during the enrollment period or when they first become eligible.

Does Workday offer a matching contribution for the 401(k) plan?

Yes, Workday offers a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.

What is the vesting schedule for Workday's 401(k) matching contributions?

The vesting schedule for Workday's 401(k) matching contributions typically follows a standard schedule, which can be found in the employee handbook or benefits portal.

Can I change my contribution percentage to the Workday 401(k) plan at any time?

Yes, employees can change their contribution percentage to the Workday 401(k) plan at any time through the benefits portal.

What investment options are available in the Workday 401(k) plan?

The Workday 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

Is there a loan option available through the Workday 401(k) plan?

Yes, Workday allows employees to take loans against their 401(k) savings under certain conditions.

How can I access my 401(k) account information at Workday?

Employees can access their 401(k) account information through the Workday benefits portal or by contacting the plan administrator.

What happens to my Workday 401(k) if I leave the company?

If you leave Workday, you have several options for your 401(k), including rolling it over to another retirement account or cashing it out, subject to taxes and penalties.

Are there any fees associated with the Workday 401(k) plan?

Yes, there may be fees associated with the Workday 401(k) plan, which are disclosed in the plan documents available to employees.

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For more information you can reach the plan administrator for Workday at 6110 Stoneridge Mall Rd. Pleasanton, CA 94588; or by calling them at 925-951-9000.