Understanding Employee Tax Information
After you enter country-specific information for an employee and complete the Change Reason form, you must enter additional tax information for the employee.
Both employees and employers contribute to employment insurance (EI). The employee contribution is a flat percentage of gross insurable earnings. The employee pays EI at a specific rate until the employee's year-to-date salary reaches an annual limit. After earnings reach that limit, both the employee and the employer contributions to EI end for the payroll year.
You specify the employer EI rate for each employee as part of the employee master record. In addition, you can exempt students from all taxes.
When you designate an employee as exempt from all taxes, the system:
Changes other tax credits and tax exemptions to the upper limits.
Clears nonessential fields.
Sets all other exemption options to Yes.
The system issues a warning before this designation goes into effect, and you must confirm the choice by pressing Enter again.
To enter tax information, you must first begin the employee entry process, which automatically accesses the forms that you need to enter employee information. After you enter employee history information, the system automatically accesses the Canadian Tax Info by EE form, which you use to enter additional tax information.