This page (revision-13) was last changed on 26-Nov-2021 10:22 by Karen Parrott

This page was created on 26-Nov-2021 10:22 by kparrott

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Version Date Modified Size Author Changes ... Change note
13 26-Nov-2021 10:22 5 KB Karen Parrott to previous
12 26-Nov-2021 10:22 5 KB Karen Parrott to previous | to last
11 26-Nov-2021 10:22 5 KB kparrott to previous | to last
10 26-Nov-2021 10:22 5 KB kparrott to previous | to last
9 26-Nov-2021 10:22 5 KB kparrott to previous | to last CANADIAN PROVINCIAL HEALTH - EHT ==> CANADIAN PROVINCIAL HEALTH CARE - EHT
8 26-Nov-2021 10:22 5 KB kparrott to previous | to last
7 26-Nov-2021 10:22 5 KB kparrott to previous | to last CDN PROVINCIAL HEALTH - ONTARIO (EHT) ==> CANADIAN PROVINCIAL HEALTH - EHT
6 26-Nov-2021 10:22 5 KB kparrott to previous | to last
5 26-Nov-2021 10:22 2 KB kparrott to previous | to last
4 26-Nov-2021 10:22 2 KB kparrott to previous | to last CDN PROVINCIAL HEALTH-ONTARIO (EHT) ==> CDN PROVINCIAL HEALTH - ONTARIO (EHT)
3 26-Nov-2021 10:22 2 KB kparrott to previous | to last CDN PROVINCIAL HEALTH-ONTARIO ==> CDN PROVINCIAL HEALTH-ONTARIO (EHT)
2 26-Nov-2021 10:22 2 KB kparrott to previous | to last
1 26-Nov-2021 10:22 2 KB kparrott to last

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CANADIAN PROVINCIAL HEALTH CARE - EHT...nobody
CANADIAN PROVINCIAL HEALTH CARE - EHT

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!!!PROVINCIAL HEALTH CARE – ONTARIO (EHT)
The Employer Health Tax (EHT) is a payroll tax on remuneration paid to employees in the Province of Ontario. The EHT is calculated for all employees who are applicable. The EHT exemption amount should also be taken into consideration when calculating the EHT amounts for all employees. EHT should not be contributed until the exemption amount has been reached.
!!!CANADIAN PROVINCIAL HEALTH CARE - EHT
For Canadian users, the Payroll Calculation Process (UPCALC) has the capability to calculate the Employer Health Tax (EHT) in the province of Ontario and British Columbia for employees who work in these provinces.
The EHT Annual Exemption amount would be taken into consideration when calculating the EHT amounts for all employees. EHT should not be calculated until the EHT annual exemption amount has been reached for the entire Company's Payroll remuneration in the province.
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The users can refer to the following web site for Ontario government Ministry of Finance:\\
;:https://www.fin.gov.on.ca/en/tax/eht/
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*Set up new pay component for new PC usage 5053-EHT Taxable Earnings
*This new pay component (with PC Usage 5053) will store the EHT Earnings that is used to calculate EHT once when an employee’s pay has reached the EHT annual exemption amount in the Payrun, then this pay and all pays after this employee will calculate EHT.
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*Lexicon X_GOVT_RATE_TYPE added 2 values:
EHT should not be calculated until the EHT annual exemption amount has been reached for the entire Company’s Payroll remuneration in each province. The EHT Annual Exemption amount is set up on IDGV screen for each province and would be taken into consideration by province when calculating the EHT amounts for all employees.
__System supplied values:__
* Lexicon X_GOVT_RATE_TYPE provided by the system:
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**012003 - ONT EHT YTD Cumulative Earn
**012003 - Ontario EHT YTD Cumulative Earn
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*On IDGV, user needs to set up 2 entries for EHT Rate and EHT Exemption amount as follows:
**‘Reg Type’ = ‘Cdn Health Ins Regis’
**State = ‘Ontario’\\
‘Govt Rate Type’ = ‘Cdn Health Ins Rate’, set up EHT rate \\
‘Govt Rate Type’ = ‘ONT EHT Ann Max Exemption’, set up EHT exemption, e.g. 450000
* Lexicon X_CPRV_HEALTH_TAX_METHOD provided by the system:
**01 – Quebec - QHIP
**02 – Ontario - EHT
**03 – Manitoba - MHE
**04 – BC - EHT
**99 – Do Not Calculate
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Note:
*Effective Jan 01, 2019, IDGV EHT uses ‘Govt Regist Type’ = ‘Cdn Health Ins Regis’ entry
*If this is not set up, the previous ‘Cdn Health Ins 1’, ‘Cdn Health Ins 2’, ‘Cdn Health Ins 3’ will be used at the beginning of the year.
*UPCLOZ will accumulate each pay’s EHT Earnings with IDGV ‘Regist Type’ = ‘Cdn Health Ins Regis’ and ‘Govt Rate Type’ = ‘ONT EHT YTD Cumulative Earn’.
*After UPCLOZ, user needs to enter the EHT Rate and EHT Exemption on IDGV.
*At the beginning of a calendar year, UPCALC / UPCLOZ will re-start the ‘ONT EHT YTD Cumulative Earn’ by generating new effective date ‘Jan-01-YYYY’ according to Pay Issue date
* Canada PC Usages provided by the system:
**5051 - ONT EHT Earnings (PPE)
**5052 - ONT EHT Employer Contribution
**5053 - ONT EHT Taxable Earnings
**5081 - BC EHT Earnings (PPE)
**5082 - BC EHT Employer Contribution
**5083 - BC EHT Taxable Earnings
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__User setup required:__
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IPPC – Pay Component set up
*If Ontario EHT is to be calculated, set up pay components for Ontario - PC Usages 5051, 5052, 5053.
*If BC EHT is to be calculated, set up pay components for British Columbia - PC Usages 5081, 5082, 5083.
*On IPPC, the pay components that are defined for PC Usage __5051 / 5081 EHT Earnings__ will store the IPPC Element amount that is subject to EHT calculation
*On IPPC, the pay components that are defined for PC Usage __5053 / 5083 EHT Taxable Earnings__ will store the EHT Earnings that are actually used to calculate EHT once the employee’s pay has reached the EHT annual exemption amount in the Payrun for that province, then after this pay, all pays in this Payrun will calculate EHT for that province
\\
IDGV – EHT Rate and EHT Exemption amount set up
*On IDGV, user needs to set up EHT Rate, EHT Exemption amount as follows:
**Select ‘Reg Type’ = [‘Cdn Health Ins Regis’|]
**Select State = [‘Ontario’ or ‘British Columbia’|]
***(i) Select ‘Govt Rate Type’ = ‘Cdn Health Ins Rate’, set up EHT rate
***(ii) Select ‘Govt Rate Type’ = ‘EHT Ann Max Exemption’, set up EHT exemption, e.g. 450000\\ \\Note: If 'Cdn EHT Ann Max Exemptions' is not setup, IPCT EHT Annual Exemption entry will be used.
\\
IPRLC – CDN Tax Filing Information
*At employee level, on IPRLC screen Provincial tab for the field ‘Prov Health Tax Method’, please set up ‘Ontario – EHT’ or ‘BC – EHT’
!!EHT Processing from 2021
* Effective Jan 01, 2019, UPCALC uses IDGV ‘Govt Regist Type’ = ‘Cdn Health Ins Regis’ entry for EHT calculation.
* Effective Jan 01, 2021, UPCALC uses IPCT ‘EHT Annual Exemption’ entry if the IDGV ‘Govt Regist Type’ = ‘Cdn Health Ins Regis’ entry for EHT Exemption is zero.
* UPCALC derives __EHT Earnings__ from IPPC Element to store into pay components for PC Usage 5051, 5081.
* UPCALC calculates __EHT contribution__ and stores the result into pay components for PC Usage 5052, 5082 once the pays have reached the EHT Annual exemption amounts.
* UPCALC will store the __EHT Taxable Earnings__ into pay components for PC Usage 5053, 5083 once the EHT Annual exemption amounts are reached and the EHT contribution are being calculated.
* UPCLOZ accumulates each pay’s EHT Earnings with PC Usage 5051, 5081 under IDGV ‘Regist Type’ = ‘Cdn Health Ins Regis’ and ‘Govt Rate Type’ = ‘EHT YTD Cumulative Earn’.
* UPCALC reads IDGV Govt Rate Type’ = ‘EHT YTD Cumulative Earn’ entry from previous Payruns to determine if the Company’s entire payroll remuneration has reached the EHT Annual Exemption.
* Note that when UPCALC is run with Multi-Thread, there will be slight possibility that more than one employee are being processed at the same time in different thread to reach the EHT Annual Exemption. In this case, during the Payrun when the EHT starts the contribution, user needs to verify from RPREGC and after the pays are closed in UPCLOZ, user may need to make manual Adjustment to the one or two employees that started the EHT contribution.
* Once UPCALC starts the EHT calculation (after the EHT Annual Exemption amount has been reached in a payrun), then all Payruns for the remainder of the year will calculate EHT.
* After UPCLOZ, user can go into IDGV screen to check ‘EHT YTD Cumulative Earn’
* At the beginning of a calendar year, UPCALC / UPCLOZ will re-start the ‘EHT YTD Cumulative Earn’ by generating new effective date ‘Jan-01-YYYY’ according to Pay Issue date. User does not need to manually generate new effective date for a new year.
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![Notes|Edit:Internal.CDN PROVINCIAL HEALTH-ONTARIO]
[{InsertPage page='Internal.CDN PROVINCIAL HEALTH-ONTARIO' default='Click to create a new notes page'}]
![Notes|Edit:Internal.CANADIAN PROVINCIAL HEALTH CARE - EHT]
[{InsertPage page='Internal.CANADIAN PROVINCIAL HEALTH CARE - EHT' default='Click to create a new notes page'}]
This page (revision-13) was last changed on 26-Nov-2021 10:22 by Karen ParrottTop