MAINTAIN CDN TAX FILING INFORMATION#

Canadian Pay Rules contain the individual pay factors and rules that are required to calculate all legislated deductions and contributions for each employee, by effective date.

The following ‘Government Personal Tax Credit’ forms must be filed by each employee for the employer for each employment.

Federal Level

• TD1 Form

Provincial Level

• TD1AB
• TD1-BC
• TD1-MB
• TD1NB
• TD1NL
• TD1NS
• TD1NT
• TD1NU
• TD1ON
• TD1PE
• TD1SK
• TD1YT
• TP1015.3V for Quebec

The UPCALC program performs Canadian Taxation calculation.

When calculating Canadian taxation, the tax methods for each employee are defined in the Maintain CDN Tax Filing Information (IPRLC) screen. Then depending on the pay category of each timesheet, the Define CDN Pay Categories (IPPGC) screen for that timesheet may override the default employee tax methods on the pay rule. You should refer to both the Pay Categories (IPPGC) screen and the Pay Rules (IPRLC) screen to determine the actual tax methods being used for tax calculations.

As there is no equivalent of the U.S. Symmetry program, Canadian taxation is internally calculated by the UPCALC process.

You must set up the federal and provincial tax methods for each employee through the Maintain CDN Tax Filing Information (IPRLC) screen.

CDN Tax Filing Information data is stored on the P2K_PR_CDN_PAY_RULES table.

This function is date sensitive and changes made in these areas below the date navigator may be split with a new effective date.

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Federal tab#

TD1 Claim Code

The Canadian Federal TD1 Claim code is the code that corresponds to the annual amount that an employee claims as a personal tax credit on the Federal TD1 form. You must choose FED-00, FED -01...FED-X for Federal Claim Code.

Maximum Amount

This field displays the maximum value for the tax bracket selected in the TD1 Claim Code based on the AS_OF_DATE. Maximum Amount is for display purposes only and will fill automatically once the claim code field has been filled.

TD1 Claim Override

When an employee is filing the TD1 form, the employee may choose to use a personal claim amount instead of the claim code. If an amount is entered as TD1 Claim Override, this will be used instead of TD1 Claim Code.

Annual Tax Credit

The Canadian Federal Annual Tax Credit is the annual amount that an employee claims as a tax credit for Normal Tax Calculation. These federal tax credits are medical expenses, charitable donations, etc. and must be authorized by the tax office.

Ann. Area Deduction

The Canadian Federal Annual Area Deduction amount is the deduction for living in a prescribed zone (e.g. Yukon Territory, or Northwest Territories) specified on the TD1 form.

Annual Tax Deduction

The Canadian Federal Annual Tax Deduction reduces the amount subject to federal income tax withholding. These annual tax deductions are child care expenses, alimony and maintenance payments not deducted from the employee’s salary.

In order to qualify for this deduction, an employee must be authorized from their tax services office for the specific deduction amount.

Labor Fund

The Canadian Federal Labor Fund is a federal labor-sponsored fund tax credit amount for the acquisition by the employee of approved shares of the capital stock of a prescribed labor sponsored venture capital corporation.

If the share purchases are not being made through a payroll withholding arrangement, the employee must obtain authorization from their local tax services office or tax center to reduce tax withholding.

Fed Filing Status

The Canadian Federal Filing Status indicates that a person is a regular employee, a pensioner or a non-resident of Canada:

Federal Tax Method

The Canadian Federal Tax method indicates whether federal tax should be calculated using:

CPP Method

The Canadian Federal Canada Pension Plan method specifies whether CPP is calculated using a period exemption or an hourly exemption.

If an employee works in the province of Quebec, UPCALC will calculate QPP instead of CPP.

When the employee works in Quebec and other provinces during the same year, both CPP and QPP calculation take into consideration the other method (either CPP or QPP). Neither CPP nor QPP will allow the contribution to exceed the annual maximum.

EI Method

The Canadian Federal Employment Insurance method indicates that employment insurance must be calculated.

Fed. Tax Percent

This field contains the federal tax percentage applicable to this employee.

If the percentage is greater than zero, it will be used whenever the Federal Tax Method specifies to use a percentage. Otherwise, the percentage from GOVTREG (IDGV) will be used.

Federal Tax Amount

This field contains the flat tax amount that has been pre-calculated by you to be taken each pay. It will be used when the Federal Tax Method equals the Flat Amount Method.

Add’n Tax Per Period

This field contains the amount of additional tax the employee claims on TD1 form that is to be taken each pay period. If the employee does not have enough taxable earnings, this amount will only be taken if on the IPPR form the Additional Tax Option field is set to ‘Always’.

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Provincial tab#

Tax Claim Code

The Provincial Claim code is the code that corresponds to the annual amount that an employee claims as a personal tax credit at the provincial level.

For Quebec: An employee must file a TP1015-3-V form with their employer. Therefore, enter the Tax Claim Code with appropriate code: QC-0, QC-1, etc.

For other provinces, the employee should file Form TD1-XX where XX is the province code. You will then enter the appropriate Tax Claim code that is applicable to that province. If the Provincial Tax Claim Code or claim override is not specified, then the federal Tax Claim Code and Amount is used for provincial calculation.

Maximum Amount

This field displays the maximum value of tax bracket selected in the Tax Claim Code. Maximum Amount is for display purposes only and will fill automatically once the claim code field has been filled.

Tax Claim Override

When an employee is filing the TD1-XX form, the employee may choose to use a personal claim amount instead of the claim code. If an amount is entered as TD1-XX Claim Override, this will be used instead of TD1-XX Claim Code.

Ann Tax Credit

The Provincial Tax Credit is the annual amount that an employee claims as a tax credit for normal tax calculation. These annual tax credits are charitable donations, etc. and must be authorized by the tax office.

Ann. Area Deduction

This field is used to store the Provincial Labour Sponsor Fund if it is different from the Federal Labour Sponsor Fund. Currently only Saskatchewan is using this field.

Annual Tax Deduction

The Canadian Provincial Annual Tax Deduction reduces the amount subject to provincial income tax withholding.

In order to qualify for this deduction, an employee must be authorized from their tax services office for the specific deduction amount.

# of Dependents

This field displays the number of dependents being claimed at the provincial level for tax purposes.

Prov Filing Status

The Canadian Provincial Filing Status indicates that a person is:

If an employee works in the province of Quebec, UPCALC will calculate QPP instead of CPP.

When the employee works in Quebec and other provinces during the same year, both CPP and QPP calculation take into consideration the other method (either CPP or QPP). Neither CPP nor QPP will allow the contribution to exceed the annual maximum.

Prov Tax Method

For Quebec Installations Only: The Canadian Provincial Tax method indicates whether provincial tax should be calculated using:

For other provinces, the provincial portion of taxation is directly built into the Federal Tax formula and there is no need to set it up.

QPP Method

QUEBEC only: The Quebec Pension Plan method specifies whether QPP is calculated using a period exemption or an hourly exemption.

When the employee works in Quebec and other provinces during the same year, both CPP and QPP calculation take into consideration the other method (either CPP or QPP). Neither CPP nor QPP will allow the contribution to exceed the annual maximum.

Prov Health Tax Met

The Canadian Provincial Health Tax method indicates the province in which health tax must be calculated:

Prov PPIP Method

This field is used to indicate if Provincial Parental Insurance Plan (PPIP) is to be calculated for the employee.

If this method has been applied to all Quebec employees, you may override the PPIP method by selecting 'Do not Calculate' for an individual employee.

WCB Method

Indicates that Provincial Workers' Compensation insurance premiums are to be calculated.

Prov Tax Amount

When the employee works in Quebec and other provinces during the same year, both CPP and QPP calculation take into consideration the other method (either CPP or QPP). Neither CPP nor QPP will allow the contribution to exceed the annual maximum.

Prov Tax Percent

This field contains the provincial tax percentage applicable to this employee.

If the percentage is greater than zero, it will be used whenever the Provincial Tax Method specifies to use a percentage. Otherwise, the percentage from GOVTREG (IDGV) will be used.

Add Tax Period

This field contains the amount of additional tax the employee claims on TD1 form that is to be taken each pay period. If the employee does not have enough taxable earnings, this amount will only be taken if on the IPPR form the Additional Tax Option field is set to ‘Always’.

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