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. Vertex HLServer 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.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. Tax_Claim_Code is a 16 character alphanumeric code you may select from the LOV(F9).
- Maximum Amount
- This field displays the maximum value of tax bracket selected in the TD1 Claim Code. 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. Cfed_TD1_Amount is an optional 18 digit numeric field you may manually enter.
- 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. Cfed_Ann_Tax_Credit is an optional 18 digit numeric field you may manually enter.
- 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. Cfed_Ann_Area_Deduction is an optional 18 digit numeric field you may manually enter.
- 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.
- Cfed_Ann_Tax_Deduction is an optional 18 digit numeric field you may manually enter.
- Labor Fund
- The Canadian Federal Labour Fund is a federal labour-sponsored fund tax credit amount for the acquisition by the employee of approved shares of the capital stock of a prescribed labour 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 centre to reduce tax withholding.
- Cfed_Labour_Fund is an optional 18 digit numeric field you may manually enter.
- Fed Filing Status
- The Canadian Federal Filing Status indicates that a person is a regular employee, a pensioner or a non-resident of Canada:
- Regular Employee
- Pensioner
- Non Resident
- Cfed_Filing_Status is an optional fixed lexicon (X_CFED_FILING_STATUS) that you may use to look up the value.
- Federal Tax Method
- The Canadian Federal Tax method indicates whether federal tax should be calculated using:
- Annualized Method
- Cumulative Averaging
- Flat Amount
- Percentage Method
- Percentage Method + Additional Amount
- Do Not Calculate
- Cfed_Tax_Method is an optional fixed lexicon (X_CFED_TAX _METHOD) that you may use to look up the value.
- CPP Method
- The Canadian Federal Canada Pension Plan method specifies whether CPP is calculated using a period exemption or an hourly exemption.
- Period Exemption Method - used for employees who are paid a relatively consistent pay period amount, for example, salaried or full-time hourly employees.
- Hourly Exemption Method - used for employees whose pay amount fluctuates significantly from period to period, for example, part-time hourly or casual employees.
- Do Not Calculate
- 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.
- Cfed_CPP_Method is an optional fixed lexicon (X_CFED_CPP_METHOD) that you may use to look up the value.
- EI Method
- The Canadian Federal Employment Insurance method indicates that employment insurance must be calculated.
- Calculate EI
- Do Not Calculate
- Cfed_EI_Method is an optional fixed lexicon (X_CFED_EI_METHOD) that you may use to look up the value.
- 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.
- Cfed_Tax_Percent is an optional 5 digit numeric field you may manually enter.
- 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. Cfed_Tax_Amount is an optional 18 digit numeric field you may manually enter.
- 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’. Cfed_Add_Tax_Per_Period is an 18 digit numeric optional field you may manually enter.
Maintain CDN Tax Filing Information (IPRLC) - Provincial#
- 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.
- Tax_Claim_Code is a 16 character alphanumeric code you may select from the LOV.
- 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. Cprv_Claim_Amount is an 18 digit numeric optional field you may manually enter.
- 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. Cprv_Ann_Tax_Credit is an 18 digit numeric optional field you may manually enter.
- 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. Cprv_Ann_Area_Deduction is an 18 digit numeric optional field you may manually enter.
- 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.
- Cprv_Ann_Tax_Deduction is an optional 18 digit numeric field you may manually enter.
- # of Dependents
- This field displays the number of dependents being claimed at the provincial level for tax purposes. Cprv_Num_Dependents is an optional 5 digit numeric field you may manually enter.
- Prov Filing Status
- The Canadian Provincial Filing Status indicates that a person is:
- Regular Employee
- Pensioner
- Non Resident
- Cprv_Filing_Status is an optional fixed lexicon (X_CPRV_FILING_STATUS) that you may use to look up the value.
- Prov Tax Method
- For Quebec Installations Only: The Canadian Provincial Tax method indicates whether provincial tax should be calculated using:
- Annualized Method
- Cumulative Averaging
- Flat Amount
- Percentage Method
- Percentage Method & Additional Amount
- Do Not Calculate
- 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.
- Cprv_Tax_Method is an optional fixed lexicon (X_CPRV_TAX_METHOD) that you may use to look up the value.
- QPP Method
- QUEBEC only: The Quebec Pension Plan method specifies whether QPP is calculated using a period exemption or an hourly exemption.
- Period Exemption Method - used for employees who are paid a relatively consistent pay period amount, for example, salaried or full-time hourly employees.
- Hourly Exemption Method - used for employees whose pay amount fluctuates significantly from period to period, for example, part-time hourly or casual employees.
- Do Not Calculate
- 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.
- Cprv_QPP_Method is an optional fixed lexicon (X_CPRV_QPP_METHOD) that you may use to look up the value.
- Prov Health Tax Met
- The Canadian Provincial Health Tax method indicates the province in which health tax must be calculated:
- Quebec – QHIP
- Ontario – EHT
- Manitoba – MHE
- Do Not Calculate
- Cprv_Health_Tax_Method is an optional fixed lexicon (X_CPRV_HEALTH_TAX_METHOD) that you may use to look up the value.
- 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:
- Calculate WC
- Do Not Calculate
- Cprv_WCB_Method is an optional fixed lexicon (X_CPRV_WCB_METHOD) that you may use to look up the value.
- 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.
- Cprv_Tax_Amount is an 18 digit numeric optional field you may manually enter.
- 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.
- Cprv_Tax_Percent is an optional 5 digit numeric field you may manually enter.
- 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’.
- Cprv_Add_Tax_Per_Period is an optional 18 digit numeric field you may manually enter.
