Entering Additional Tax Information for an Employee

Access the Canadian Tax Info by EE form.

If the system options are set up to display the Employee Assignment form, the system displays the form after you enter information on the Change Reason form and close the Canadian Tax Info by EE form. The Employee Assignment form updates position and requisition information when you add an employee or change an employee's job.

Net Tax Credit

Enter the net claim amount for Federal taxes from the TD1 (Personal Tax Credit Return). For provincial (Quebec) taxes, enter the net claim amount from the MR-19-V (Exemptions and Deductions form).

Additional Tax

Enter the amount of additional federal tax to be deducted per pay period. For provincial taxes, enter the amount of additional provincial tax to be deducted per pay period. You can enter an amount for Federal taxes only.

Other Tax Credit

Enter other federal tax credits, such as medical expenses and charitable donations, that are requested by an employee and authorized by the Canada Customs and Revenue Agency (CCRA) district office.

EI Rate Code (employment insurance rate code)

Enter the statutory code that corresponds to the employer-paid EI rate that the system uses for this employee. For example, you might use U01 if the employee is eligible for a sick leave plan and is subject to a reduced employer-paid EI rate.

EI/PPIP/CPP/QPP Exempt (employment insurance/provincial parental insurance plan/Canadian pension plan/Quebec pension plan exempt)

Select an option that indicates whether the employee is exempt or nonexempt from tax deductions. Select one of these options to indicate the proper exemptions:

EI: Employee is exempt from federal employment insurance deduction.

EI/CPP/QPP: Employee is exempt from employment insurance, Canada pension plan, Quebec pension plan.

PPIPEmployee is exempt from provincial parental insurance plan.

CPP/QPP: Employee is exempt from Canada pension plan or Quebec pension plan deductions.

All Taxes: Employee is exempt from all tax deductions.

E1/PPIP: Employee is exempt from federal employment insurance deduction or provincial parental insurance plan.

Pensioner/Non-Resident Flag

Enter a code that indicates whether the employee is a nonresident or a pensioner of Canada. Values are:

N: Non-Resident of Canada

P: Pensioner

Blank: Regular employee

Provincial Net Tax Credit

Enter the net claim amount for Federal taxes from the TD1 (Personal Tax Credit Return). For provincial (Quebec) taxes, enter the net claim amount from the MR-19-V (Exemptions and Deductions form).

Provincial Additional Tax

Enter the amount of additional federal tax to be deducted per pay period for federal taxes. For provincial taxes, enter the amount of additional provincial tax to be deducted per pay period.

Provincial Other Tax Credit

Enter Quebec additional deductions that are claimed on the MR-19-V (Exemptions and Reductions form) or other deductions that are authorized by the Ministère du Revenu du Québec.

Provincial Tax Override

Enter a flat percentage that overrides the standard tax rate.

Prescribed Area Deduction

Enter an annual deduction for living in a prescribed area as listed on the TD1 (Personal Tax Credit Return).

Child Care, Alimony, Etc

Enter an annual deduction, such as child care expenses, alimony payments, maintenance payments, and so on.

Federal Tax Override %(federal tax override percent

Enter a flat percentage that overrides the standard tax rate.

CPP-QPP Tax Override % (Canadian pension plan - Quebec pension plan tax override percent)

Enter a flat percentage that overrides the standard tax rate.

Estimated Salary

Enter the amount of estimated salary that is recorded on the employee's TD1X form (Statement of Commission Income and Expenses for Payroll Tax Deductions). The system uses this amount and the estimated expenses to determine the taxable gross income for commission taxation.

Estimated Expenses

Enter the amount of estimated expenses that are recorded on the employee's TD1X form. This amount is used to determine taxable gross for commission taxation.

TD1X Filed?

Enter the value that specifies whether the employee is paid by irregular commission payments and has completed a TD1X form (Statement of Commission Income and Expenses for Payroll Tax Deductions). Values are:

N: The employee has not completed the TD1X form (default).

Y: The employee has completed the TD1X form for employees that are paid by irregular commission payments

You must enter Y to correctly calculate taxes for employees who file the TD1X form. When this field is set to Y, the system calculates all taxes regardless of pay type as an irregular commission. CPP and EI are calculated using only the annual limits.