Understanding the Tax Area Update for Employees Based on Time Entry

When an employee works with multiple provinces in a pay period, the system calculates taxes based on the employee master details. The Update Appropriate Tax Area To Employee Based On Time Entry report updates the Employee Master (F060116) with the applicable tax area based on the evaluation of timecards. You must enter the appropriate dates for time cards in the processing options.

You run this report prior to payroll processing to update F060116 with the Vertex GeoCode for the appropriate tax area or province.

The Update Appropriate Tax Area To Employee Based On Time Entry report updates the new tax area entered in the employee's timecard based on these rules:

• If multiple time cards are entered for an employee in a pay period with different tax areas and different hours worked, the system updates F060116 with the tax area having the largest value for the sum of hours worked.

• If multiple time cards are entered for an employee in a pay period with different tax areas and same hours worked, the system updates F060116 with the timecard having the latest work date.