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CANADIAN PAY RULES INTERFACE FILE#

The Canadian Payrules Interface File screen is used to import taxation rules for employees into the software data structures. This table defines the employee’s rules for taxation, including claim codes, filing status and exemption information.

Canadian Payrules Interface File data is maintained on the INF_CV_CDNPAYRULES table.

ID
This field uniquely identifies the Canadian pay rule record within the data base.
Entity
This field identifies the entity associated with the pay rule.
Person Code
This field identifies the person associated with the pay rule.
Employment Type
The person's employment type is displayed in this field.
Date of Hire
The employee's date of hire is displayed in this field.
Effective as of/Expires On
If the employment is for a limited time, that time period is defined in these fields.
Change Reason
This field displays the ‘Change Reason’ code, which provides the rationale as to why information has been created or changed as of an effective date.
Fed Annual Tax Credit
This field is used to hold the annual amount that an employee claims as a tax credit for Normal Tax Calculation.
Fed Annual Tax Deduction
Fed Annual Area Deduction
Fed Tax Amount
Fed Tax %
Fed Add'l Tax Per Period
Fed Filing Status
Fed Tax Method
Fed Labour Fund
Prov Tax Claim Type
Prov Tax Claim Code
Prov Claim Amount
Prov # of Dependants
Prov Annual Tax Deduction
Prov Tax Amount
Prov Tax %
Prov Tax Method
For Canadian Installations only. The Canadian Provincial Tax method indicates the override for provincial tax calculation using the annualized (table) method, by cumulative averaging, as a flat amount, or by a percentage.
Prov QPP Method
Prov Health Tax Method
Prov WC Method
Indicates that Provincial Workers' Compensation insurance premiums are to be calculated:

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 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.
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’.

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.
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.
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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