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!!!CANADIAN TAXATION
The pay components used to store taxation and government calculation results are defined in the Maintain Pay Component ([IPPC]) form, using a Canadian pay component usage defined in the [IPCU] form.

Pay elements ([IPPE]) are used to define which pay components are subject to each different tax

Default tax calculation methods are found on the pay rule for each employee.

Pay category ([IPPGC]) can override default tax information.

Canadian taxation is calculated in [UPCALC] (payroll Calculation) process using the Annualization Method, Overridden Flat Amount, Percentage Method, Lump Sum Method or other available methods.

[UPCALC] uses several High Line provided files to calculate Canadian Taxation

The following scenario describes the set up required where there are separate registration numbers because payroll and remittances are processed for two organizations.

In this scenario, there are two entities, Organization A and Organization B, in addition, there are three registration numbers associated with these entities because Organization A has two different EI rates. The first registration number is for use with employees with benefit packages that entitle the organization to a reduced employer EI rate; the second number is for use with
employees without the reduced rate.

Set up to handle the multiple BN numbers at the federal registration level would be as follows:
#) On [IDGV] screen, select ‘Cdn Fed Registration’ in the Registration Type field.
#) On the same screen, enter ‘Canada’ in the Country Name field.
#) Specify each BN number for the entity where employees are remitted.
#) In the Registration tab on [IDGR], you can enter the proper federal and State/Prov registration for this group.
#) When [RPYEC] (Canada Year End Summary Report) is run for T4/T4A/Releve1, etc., you will select the BN number, then all the group level BN numbers will automatically be picked up and the report will be reported by each BN number. 

If an employee has ONE employment and then moves between groups that have different BN numbers, this will NOT cause the CPP/EI to start over, because in [UPCALC], the YTD retrieval will not differentiate between groups. 

If an employee has MULTIPLE employments within an entity, the CPP/EI will start over, regardless of whether the employee moves between groups that have a different BN number. This process is done because in [UPCALC], the YTD retrieval is by employment.

[{$applicationname}] uses the “more accurate calculation” from the MC Guide for the K2 factor for CPP and EI tax credit:
;(P x C) is changed to the lesser of:
;:CPP Max or YTD C + (PR x C)
;(P x E) is changed to the lesser of:
;:EI Max or YTD EI + (PR x EI)
;Where PR = number of pay periods remaining in the years

When an employee is hired during the year and the CPP/EI tax credit does not reach the annual max, the PC and PE factor will be:
(P x C) and (P x E) where P = number of pay period in the year.

This is because the employee does not have a full YTD values to use the more accurate formula.