Using Payline One-Time Deductions for Entering Before-Tax Deductions

Consultation with the Canada Revenue Agency (CRA) has prompted PeopleSoft to revise our treatment of one-time before-tax deductions associated with specific taxation methodologies. This topic discusses the revised methods that PeopleSoft uses to handle before-tax one-time deductions and provides examples of each method.

PeopleSoft's basic methodology is to derive Pay Period Taxable Gross as: Taxable Earnings plus Taxable Benefits less Before-Tax Deductions.

The calculation methodology the system uses to derive Annual Taxable Income depends on the tax method that is used (annualized, bonus, or both annualized and bonus on a single cheque).