1. Canadian Payroll Year-End Processing (T4) Guide
  2. Verifying User Defined Codes

Verifying User Defined Codes

Before you begin year-end processing, you verify that the information that you want to print on the year-end forms is set up correctly. To do this, you set up or review the appropriate user-defined code tables and make any necessary additions or changes.

You must review the user-defined codes and verify that you assigned the correct codes to print pension and special handling information.

Verifying user defined codes includes the following:

  • Verifying pension plan numbers

  • Verifying special handling pay codes

  • Verifying province of employment codes

  • Verifying T4 and T4A other information codes

  • Verifying T4 employment codes

  • Verifying RL-1 case O codes

  • Verifying RL-2 source of income codes

  • Verifying country codes

  • Setting up the EI Reduced Rate

  • Verifying Cheque Route Codes

Verifying Pension Plan Numbers

You must report the employee's Registered Pension Plan number or Deferred Profit Sharing Plan number as registered with Canada Revenue Agency (CRA) on all T4s and T4As.

You use the Pension Plan Number codes UDC table (77/PN) to maintain a list of valid pension numbers. The Code field contains the Registered Pension Plan number or the Deferred Profit Sharing Plan number. The Description field contains a descriptive reference for your use. The system does not print the Description field on year-end forms.

Note:

Pension plan numbers must be seven numeric digits.

To review pension plan numbers

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From T4/Relevé Setup (G772472), choose Pension Numbers

On Pension Numbers, review the following fields:

  • Code

  • Description

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Verifying Special Handling Pay Codes

Special handling pay codes, UDC 07/IP correspond to the income boxes on year-end forms. You review special handling pay codes to verify that they accurately reflect the reporting requirements for the current year. For T4 special handling pay codes, you must use the box numbers on the T4 forms that the CRA requires.

Because special handling pay codes correspond to specific boxes on the year-end forms, JD Edwards World recommends that you define:

  • Two-digit numeric codes for the special handling pay codes that appear on T4 forms.

  • Three-digit codes for the special handing pay codes that appear on T4A forms.

  • Alphabetic codes for the special handling pay codes that appear on Relevé 1 and Relevé 2 forms.

To review special handling pay codes

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From T4/Relevé Setup (G772472), choose Special Handling Pay Codes

On Special Handling Pay Codes, review the following fields:

  • Code

  • Description

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See also:

Verifying Province of Employment

You use province of employment codes, UDC 07/SC to identify an employee's province of employment. JD Edwards World software supplies province codes that are compatible with the Vertex Payroll Tax Calculation system. The list of codes includes the codes for both Canadian provinces and U.S. states.

Verify that all province codes are correct. Each code must be two characters long, even though the table allows three characters. Do not change or delete any other codes in this table. You must the 9-digit province code in the Description-2 field, for example, 700190000 for Québec.

The two-character province code prints on T4 forms.

To review province codes

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From T4/Relevé Setup (G772472), choose Province of Employment

On Province of Employment, review the following fields:

  • Code

  • Description

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Verifying T4 and T4A Other Information Codes

T4 and T4A Other Information codes correspond to the special handling pay codes that appear in the Other Information boxes on T4 and T4A year-end forms.

  • T4 - UDC 77/OI

  • T4A - UDC 77/OB

You review these codes to verify that they accurately reflect the reporting requirements for the current year. You must use the box numbers on the T4 and T4A form that the CRA requires.

You must also define the T4 and T4A Other Information codes in UDC 07/IP Special Handling Codes. The codes in UDC 77/OI and 77/OB must be in 07/IP.

Following is an example of UDC 77/OI for T4 Other Information.

To review T4 and T4A other information codes

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From T4/Relevé Setup (G772472), choose T4 Other Information or T4A Other Information

On T4 Other Information, review the following fields:

  • Code

  • Description

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Verifying T4 Employment Codes

The CRA requires that you enter employment codes for certain types of employment. UDC 77/EC contains the valid T4 employment codes. You review T4 employment codes to verify that they accurately reflect the reporting requirements for the current year.

During the workfile build, you can set up a payroll category code to designate employment codes. Alternatively, you can use the Employee T4 Adjustments form to enter employment codes for specific employees.

To review T4 employment codes

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From T4/Relevé Setup (G772472), choose Employment Codes

  1. On T4 Employment Codes, review the following fields:

  • Code

  • Description

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See also:

Defining Year-End Workfilesfor information about using payroll category codes to designate employment codes on the T4 form.

Verifying RL-1 Case O Codes

UDC 77/RC contains the codes that explain the amount in Box O (other taxable income) on the Relevé 1 form. These explanatory codes appear in Code (case O) on the Relevé 1 form. The codes are defined by Ministere du Revenu du Québec. You review these codes to verify that they accurately reflect the reporting requirements for the current year.

Note:

You use special handling codes to associate similar PDBAs to Case O codes. The system prints the amount associated with the PDBAs in Box O (other taxable income) and the explanatory code in the Code (case O) box. Alternatively, you can enter Box O information as an adjustment after the workfile build.

To review RL-1 case O codes

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From T4/Relevé Setup (G772472), choose RL-1 Case O Codes

On RL-1 Case O Codes, review the following fields:

  • Code

  • Description

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Verifying RL-2 Source of Income Codes

UDC 77/SI contains the codes that explain the source of the amounts you are reporting on the Relevé 2 form. These explanatory codes appear in the Provenance des revenus box on the Relevé 2 form. The codes are defined by Ministere du Revenu du Québec. You review these codes to verify that they accurately reflect the reporting requirements for the current year.

Note:

You use special handling pay codes to associate similar PDBAs to the source of income codes. The system prints the amounts associated with the PDBAs on the RL-2 form. You enter the source of income code as an adjustment after the workfile build.

To review RL-2 source of income codes

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From T4/Relevé Setup (G772472), choose RL-2 Source of Income Codes

On RL-2 Source of Income Codes, review the following fields:

  • Code

  • Description

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Verifying Country Codes

You use country codes, UDC 77/CN, to identify the alphabetic country codes in the International Standard (ISO) 3166 Codes for the Representation of Names or Countries.

Verify that you set up all country codes and that they are correct for all employees you process, especially for any employees that work outside Canada or the United States. Ensure that each of the following fields include these requirements:

  • Code field must include the valid three character ISO-3166 country code

  • Description field must contain the ISO-3166 country name

  • Description-2 field must contain the ISO-3166 2-character country code equivalent

To review country codes

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From T4/Relevé Setup (G772472), choose Country Codes

On Country, review the following fields:

  • Code

  • Description

  • Description-2

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Setting Up the EI Reduced Rate

You must set up a new EI Reduced Rate (UDC 77T4/EI) each year. Contact the appropriate government agency to locate the rate.

To set up the EI reduced rate

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From T4/Relevé Setup (G772472), choose General User Define Codes

  1. On General User Defined Codes, locate EI Reduced Rate (77T4/EI).

  2. Complete the following fields:

    • Code

    • Description

    • Description 2

  3. Access the detail area, enter N in the Hard Coded Y/N field and click Add.

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Verifying Cheque Route Codes

If you use window envelopes to mail T4 forms, you use UDC 07/CR for the Cheque Route Code field on the Employee Enter program (P070101) to display the employee name and address in a window envelope.

To verify cheque route codes

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From T4/Relevé Setup (G772472), choose General User Define Codes

  1. On General User Defined Codes, access the detail area (F4).

  2. Locate Cheque Route Code (07/CR) and review the following fields:

    • Code

    • Description

    • Description 2

    • Hard Coded Y/N