In the past, UPG and UVA Rector & Visitors have manually coordinated and balanced OASDI (Social Security) tax between entities for employees employed in both companies. This manual balancing has been done to prevent dually employed staff from going over the annual OASDI tax limit each year. The act of coordinating the OASDI tax between entities means that the two companies have been operating under a "Common Paymaster" relationship, with Rector being the "parent" common paymaster company.
As of January 1, 2022, the Common Paymaster relationship is handled via a configuration in Workday instead of as a manual intervention. As a result, employees working for both UPG and ACD will only make one W-4 election. That W-4 election will be made under the company name of Rector & Visitors, and it will apply to all payroll processed in both entities. For UPG employees, the company name will appear as Rector & Visitors. UPG employees should rest assured that the tax election does apply to their UPG payroll and that on your year-end W-2 tax documents, UPG will be reflected as your employer.
Please note: if an employee makes a W-4 election to have an additional amount withheld for income taxes, the additional amount will be taken from both UPG and ACD payrolls. So, for example, if you elect to have an extra $500 in tax withheld, the additional $500 will be collected from every pay period in both your UPG payroll and your ACD payroll.
We are excited to be able to leverage Workday to manage a process we have been managing manually for years. We do realize you may have questions as you make tax elections for 2022, so please feel free to email any questions you may have to payroll@virginia.edu, and we will be glad to provide follow-up information.