Understanding Corporate Tax IDs

You set up tax IDs for employment insurance (EI) to store EI tax history, for Quebec tax reporting purposes, and to process workers' compensation.

You must set up tax area CFEDU01 for the employer-paid portion of EI. If the company is eligible for any reduced rates for EI, you can set up as many as ten additional tax areas by using the naming convention CFEDUxx.

You must set up a tax ID record for each province for which you process workers' compensation. The record must consist of the correct tax area for the province, tax type W, and the appropriate tax number. For example, if you process workers' compensation for employees in Alberta and employees in Saskatchewan, you add lines in the detail area of the Corporate Tax ID Revisions form for each of these two provinces as illustrated in this table:

Province	Work Tax Area (TARA)	Tax Type (PTAX)	Tax ID (TAXX)
Alberta	700010000	W	Valid tax number
Saskatchewan	700210000	W	Valid tax number

Note: If you have records in the F0627 table that are incorrect because they were created before the tax IDs for workers' compensation were set up, you can use the Fix TAXX and CA TARA conversion program (R890627) to correct these records. You must set up the tax IDs for workers' compensation on the Corporate Tax ID Revisions form before you run the conversion program.You must set up a corporate tax ID for each Canada Customs and Revenue Agency (CCRA) and Ministère du Revenu du Québec business number that the company uses.