Balances to Initialize for Canada
The Canada Legislative Balances are balances that Oracle Payroll Cloud uses to perform accurate tax reporting and payroll tax calculations.
- Legislative balances
- User-defined balances
- Summary balances
- Miscellaneous balances
Canadian Legislative Balances
Canada requires several balances, called Canadian Legislative Balances, to perform accurate tax reporting and payroll tax calculations. For example, balances are used for year-end reporting, Workers’ Compensation reporting, and so on. These balances are required to the extent that they apply to the employee. For example, if an employee does not participate in the retirement plan, the required balance Pretax Registered Retirement Plan is not needed for that employee.
Canadian Legislative or User-Defined Context Columns
- ContextOneName
- ContextOneValue
Populate the context name attributes with the name of the context usage for that legislative or user-defined context, and the context value attributes with the actual value of that context.
Depending on the dimension, Canada may require one of these contextual inputs:
Attribute Name | Value |
---|---|
ContextOneName | Year End Forms |
ContextOneValue | [lookup code]. For example T4_RL1 |
Reference Codes
Attribute Name | Value |
---|---|
ContextOneName | Reference Code |
ContextOneValue | WC_[Account Number]_[Classification Unit] |
Provincial Medical
Attribute Name | Value |
---|---|
ContextOneName | Reference Code |
ContextOneValue | PM_[Provincial Medical Account] |
Attribute Name | Value |
---|---|
ContextOneName | Reference Code |
ContextOneValue | PM_UNDEFINED |
Attribute Name | Value |
---|---|
ContextOneName | Reference Code |
ContextOneValue | The value of the support order number, or any unique number. For example, 123456. |
Pension Registration Number
Attribute Name | Value |
---|---|
ContextOneName | Statutory Reporting Code |
ContextOneValue | The value of the pension registration number. |
If the context you are populating is a lookup, populate the context fields in the following manner:
- Context Name: Populate with the lookup type meaning
- Context Value: Populate with the lookup code (not the lookup type meaning)
- Subject = Gross – Exempt
- Reduced Subject = Subject – Pretax Deductions
- Excess = Reduced Subject – Taxable
- Reduced Subject – Taxable = Excess
- CPP Employee Withheld
- Sum of the CPP employee taxable balances
-
- CPP Employee Regular Taxabl
- CPP Employee Nonperiodic Taxable
Statutory Report Type
Secondary classifications in Canada are associated with Statutory Report Types for end of year reporting for both earnings and deductions. These reporting types help determine how the earnings and deductions are reported to the Canadian Federal and Provincial governments. These reporting types are captured on a flex on the secondary classification. The values for this flex are:
- T4/RL1
- T4A/RL1
- T4A/RL2
The Statutory Report Types are seeded for any secondary classifications that are seeded by the application. For those secondary classifications created by customers, the association to the Reporting Type must be created manually. This association is mandatory.
For the purposes of balance initialization, some of the dimensions require the statutory report type as one of the components of the dimension. This column is populated by use of the Context columns. The required entry in the user-defined context column is as defined as follows, where the Lookup Codes are defined as T4_RL1, T4A_RL1, or T4A_RL2.
Attribute Name | Value |
---|---|
ContextOneName | Year End Forms |
ContextOneValue | [Lookup code] |
Record of Employment Balances
Initialization of Record of Employment (ROE) balances is not supported. ROEs should be generated from the legacy system after the final payroll is processed, using the ‘Change of Service Provider” reason code. If an employee subsequently experiences an interruption of earnings, the ROE will report earnings starting with their first payroll run on Oracle HCM Cloud Payroll.
Vacation Liability Balances
Balance Name | Dimension Name |
---|---|
Unprocessed Vacationable Earnings | Relationship Tax Unit Year to Date |
Vacation Liability | Relationship Tax Unit, Plan Type Inception to Date |
Vacationable Earnings |
For the purposes of balance initialization, some dimensions include a Plan Type component. This represents the Vacation Plan and Term. Populate the Plan Type component with the following value:
- VA_<absence plan name>_YYYY_<absence plan ID>
YYYY refers to the vacation term year for which the vacation liability is processed. It is derived on the process/pay date. Employers may accrue liability in one year and allow employees to take vacation in the following year. Alternatively, they may accrue and allow vacation to be taken in the current year.
For example, VA_Vacation Plan_2018_123456789098765.
Tax Balances for Prior Contributions
Oracle Cloud contains tax balances to hold the prior contribution values for an employee. This is to accommodate those values deducted by a previous employer. These prior values are considered for the annual maximum contribution limits. From the employee’s perspective, these balances will not appear in the current year’s YTD amounts, nor will they appear on any year end forms.
The tax balances are for Prior Canada Pension Plan (CPP), Prior Quebec Pension Plan (QPP), Prior Quebec Parental Insurance Plan (QPIP), and Prior Employment Insurance (EI). The balances and the required dimensions are listed in this table and should only be initialized if you need to account for prior balances. Examples include prior balances deducted in the case of acquisitions, amalgamations, or a change in business status.
Balance Name | Dimension Name |
---|---|
Prior EI Employee Taxable | Relationship No Calculation Breakdown, Province, Statutory Report Type Year to Date |
Prior EI Employee Withheld | |
Prior EI Employer Taxable | |
Prior EI Employer Liability |
Balance Name | Dimension Name |
---|---|
Prior CPP Employee Basic Exemption | Relationship No Calculation Breakdown, Statutory Report Type Year to Date |
Prior CPP Employee Taxable | |
Prior CPP Employee Withheld | |
Prior CPP Employer Basic Exemption | |
Prior CPP Employer Taxable | |
Prior CPP Employer Liability |
Balance Name | Dimension Name |
---|---|
Prior QPP Employee Basic Exemption | Relationship No Calculation Breakdown, Statutory Report Type Year to Date |
Prior QPP Employee Taxable | |
Prior QPP Employee Withheld | |
Prior QPP Employer Basic Exemption | |
Prior QPP Employer Taxable | |
Prior QPP Employer Liability |
Balance Name | Dimension Name |
---|---|
Prior QPIP Employee Taxable | Relationship No Calculation Breakdown, Statutory Report Type Year to Date |
Prior QPIP Employee Withheld | |
Prior QPIP Employer Taxable | |
Prior QPIP Employer Liability |
Quebec Labour Standards Balances
Employers with employees working in Quebec are subject to the Quebec Labour Standards (QLS) levy. Initialize these balances only if applicable.
If you are going live at any point other than the start of the tax year, for accurate QLS calculations and reporting, you must initialize the balances prior to running payrolls. Alternatively, you may perform balance adjustments at the end of the year.
For the purposes of balance initialization, the dimension required for QLS balances includes a Statutory Report Code component. This represents the Quebec Identification Number associated with the balance, and it is mandatory to populate.
Note: Depending on your unique requirements, you may require other balances to be initialized. You may need to initialize other balances separately that are part of QLS gross or QLS exempt earnings. Please see the Use Cases and Example Files section for QLS examples.
For additional information on the Quebec Labour Standards Report, refer to these documents:
Cloud Readiness What’s New Document:
Administering Payroll for Canada Guide:Balance Name | Dimension Name | Notes |
---|---|---|
Quebec Labour Standards Gross | Relationship No Calculation Breakdown, Statutory Report Type Year to Date | The sum of these balances: Gross Earnings RL-1 Box A Adjustment RL-1 Box R Employment Income Adjustment Indemnities in Lieu of Notice Indemnities for Damages RL-1 Deferred Salary or Wages If any of these balances are initialized or adjusted, you must also adjust the Quebec Labour Standards Gross balance accordingly. |
Quebec Labour Standards Subject | Relationship Tax Unit, Province, Statutory Report Type, Statutory Report Code Year to Date | The Quebec Labour Standards Gross - sum of these balances (which are exempt balances): RL-1 Employee Benefit Plan RL-1 Employee Trust Directors Fees Benefit for Amount Paid for Shares Commission or Committee Member Fees Quebec Employees Outside Canada Wages Parity Committee Employee Wages CCQ Employee Wages Heavy Equipment Operator Wage * .05 (Percent Remuneration not Subject) Other Labour Standards Exempt Remuneration |
Quebec Labour Standards Exempt | Quebec Labour Standards Gross - Quebec Labour Standards Subject. Note: Although this balance is maintained, it is not displayed on the Quebec Labour Standards Report. |
|
Quebec Labour Standards Taxable |
Quebec Labour Standards Subject, not to exceed the annual maximum limit. For example, the 2020 limit is $78,500. |
|
Quebec Labour Standards Excess | Quebec Labour Standards Subject - Annual Maximum Limit. This represents any amount of the Quebec Labour Standards Subject in excess of the annual maximum limit. |
|
Quebec Labour Standards Liability | The amount calculated by applying the annual rate to the Quebec Labour Standards Taxable. | |
Benefit from Amount Paid for Shares | N/A | |
CCQ Employee Wages | N/A | |
Commission or Committee Member Fees | N/A | |
Director's Fees | N/A | |
Heavy Equipment Operator Wages | N/A | |
Indemnities for Damages | N/A | |
Indemnities in Lieu of Notice | N/A | |
Parity Committee Employee Wages | N/A | |
Other Labour Standards Exempt Remuneration | N/A |
Tax and Year-End Balances
Please refer to Geography Codes for Canadian Provinces for the tax and year-end balances available to load for Canada.