Which pay component group should be added to non-statutory deductions for mandatory union dues?

Which pay component group should be added to non-statutory deductions for mandatory union dues?

• A. Withholding Order (All): Mandatory Union Dues
• B. Taxes: Federal
• C. Earnings: Overtime
• D. Benefits: Pension

Answer: (A)

Mandatory union dues are a withholding that must be taken from an employee’s pay under an external order or contract, not a tax or a earned benefit. In Workday, this type of deduction is handled as a non-statutory withholding order, and the dedicated pay component group for this is “Withholding Order (All): Mandatory Union Dues.” Using this grouping ensures the payroll system applies the deduction correctly, separate from taxes, earnings like overtime, or benefits like a pension, and aligns with how such orders are reported and governed. The other options don’t fit because federal taxes are statutory tax withholdings, overtime is part of earnings, and pension is a benefit contribution, not a withholding order for union dues.

Mandatory union dues are a withholding that must be taken from an employee’s pay under an external order or contract, not a tax or a earned benefit. In Workday, this type of deduction is handled as a non-statutory withholding order, and the dedicated pay component group for this is “Withholding Order (All): Mandatory Union Dues.” Using this grouping ensures the payroll system applies the deduction correctly, separate from taxes, earnings like overtime, or benefits like a pension, and aligns with how such orders are reported and governed. The other options don’t fit because federal taxes are statutory tax withholdings, overtime is part of earnings, and pension is a benefit contribution, not a withholding order for union dues.