When the IRS issues a federal tax levy, Workday enables you to either allow or disallow the employee from making any tax election changes via self-service.

• A. Not supported
• B. False
• C. True
• D. Only during payroll maintenance

Answer: (C)

When a federal tax levy is active, you must prevent changes to withholding that could undermine the levy. Workday provides a control that lets you manage whether employees can change tax elections via self-service, and you can configure it to disallow those changes while the levy remains in effect. This ensures the withholding stays in line with the IRS directive and reduces the risk of noncompliance. You’d typically re-enable changes only after the levy is released or satisfied. The capability isn’t limited to payroll maintenance windows; it’s tied to the levy status. So the statement is true.