Automatic Calculation Card Creation for Canada

If your Payroll Product Usage is set to Oracle Fusion Payroll or Payroll Interface, then a statutory calculation card is created automatically as part of the new hire process.

It is important to understand these aspects of automatic calculation card creation:

• Calculation Groups and Components

• Associations and Association Details

• Province of Employment

• Canadian Taxation Element

• Automatically Created Calculation Card

Use the Calculation Cards task in the Payroll area to view and update the card as needed.

Automatic calculation card creation occurs only for employees; no card is created for pending workers or nonworkers. Other than the new hire flow, automatic card creation happens when:

• A pending worker is converted to an employee and there is a change in the payroll relationship

• An employee with an existing card gets a new term or assignment for a different payroll relationship

Calculation Groups and Components

The automatically created card contains these calculation groups and components:

Calculation Groups	Components
Federal	Federal Tax
Federal	Canada Pension Plan
Federal	Employment Insurance
Federal	Canadian Taxation
Regional	Provincial Tax
Regional	Payroll Taxes
Association	Tax Reporting Unit
Association	Assignment or Employment Terms

Associations and Association Details

If a tax reporting unit (TRU) is selected in the Payroll Details section on the Hire an Employee: Employment Information page, an association to that TRU is added to the calculation card. Association details are also added, linking the calculation components to the assignment or employment terms created for the new hire.

A person with multiple assignments can have one TRU for each assignment or employment terms. You can't associate more than one TRU to an assignment or employment terms.

During the new hire flow, if no TRU is selected, the process creates a calculation card with the components described above, but the card contains no TRU association or association details. Associating a TRU with a calculation card enables the payroll process to apply rules and rates defined for that TRU when aggregating the calculations. You must create an association on the card before the employee can be processed in a payroll.

The TRU association process not only links the card to the assignment or employment term, but it also creates the Canadian Taxation element entry.

Province of Employment

The province of employment is determined by the work location of the employee, if defined during the hiring process. For any subsequent changes to the employee work location, you must edit the card manually to update the province of employment.

Canadian Taxation Element

When the TRU association is created, the Canadian Taxation element entry is created to enable tax calculations for the employee. The element entry is created if the eligibility is defined and the employee meets the eligibility criteria.

Automatically Created Calculation Card

Once the card is created, you can view and update the card as needed. For example, you can

• Enter the Total Claim Amount

• Exempt the employee from federal or provincial tax

• Enter an override

• Change the province of employment if it differs from the default value