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 may access this feature under the Screens/Forms menu: Payroll > Maintain CDN Tax Filing Information
You must set up the federal and provincial tax methods for each employee through the Maintain CDN Tax Filing Information (IPRLC) screen.
‘Maintain CDN Tax Filing Information’ Usage and Examples
CDN Tax Filing Information data is stored on the P2K_PR_CDN_PAY_RULES table.
Maintain CDN Tax Filing Information (IPRLC) - Federal#
- 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
- 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
- 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.
