1. Implementing Payroll for Canada
  2. Create a Statutory Deductions Calculation Card Manually

Create a Statutory Deductions Calculation Card Manually

This example demonstrates how you can create the Tax Credit Information Calculation Card calculation card at the payroll relationship level and add the federal and provincial tax deductions. The calculation card captures the employee's tax filing information as given in the TD1 form.

Before You Begin

Before you start creating the card, confirm the following:

  1. The new hire process for the employee is completed and the employee has a valid payroll relationship with a Canadian payroll statutory unit. The employee has at least one valid assignment under the payroll relationship.

  2. The employee is assigned to a payroll.

Create the Calculation Card

  1. Search and select the Calculation Cards task under Payroll in My Client Groups on the Home page..

  2. Complete these fields in the Search section, as shown in this table.

    Field

    Value

    Name

    Adams, Kay

    Legislative Data Group

    InFusion, Canada

    Effective As-of Date

    01/01/2013

  3. Click Search to display a list of matching payroll relationships.

    Note: A person can have multiple payroll relationships. In this example, only one payroll relationship exists for the person.

  4. Click the row for Adams, Kay to open the Person Details page. Any available calculation cards appear in the Search Results.

  5. Click Create to open the Create Calculation Card window.

  6. In the Name field, select Tax Credit Information Calculation Card as the calculation card type.

  7. Click Continue to display the Calculation Cards page.

    In the Calculation Card Overview pane, you can view the calculation groups associated with this calculation card. In this example, you can see the Federal and Regional calculation groups. You can also see Ontario under the Regional group.

How to Add Calculation Components for Federal Deductions

To enter the federal deduction components:

  1. In the Calculation Card Overview pane, select Federal.

    Note: The three calculation components under the Federal group are: Federal Tax Information, Tax Exempt Information, and Commission Information.

  2. Enter 15,500 as the Total Claim Amount.

    Note: You enter a claim amount only if the employee has an amount that's different than the basic amount. If you don't enter an amount the basic amount is used.

  3. Enter 500 as the Additional Tax amount.

  4. Select the CPP Exempt check box to exempt the employee from CPP deductions.

  5. Enter the CPP Election Date if you want CPP proration.

    Note: You can't select the CPP Exempt check box and also enter the CPP Election Date. You can enter only either of them and not both.

  6. Select the EI Exempt check box to exempt the employee from EI deductions.

How to Add Calculation Components for Regional Deductions

To add provincial tax details for a province, for example Ontario: The employee has two dependents under the age of 19 and one disabled dependent.

  1. In the Calculation Card Overview section, select ON under the Regional group. ON is the two-digit province code for Ontario.

    Calculation Components under the Regional group are: Provincial Tax, Payroll Tax and Quebec Taxes. The values displayed in the card depend on the province of employment. In this example, you can see the components for Provincial Tax for Ontario.

  2. Enter the Total Claim Amount to override the provincial tax deductions.

  3. Select the Provincial Tax Exempt check box if you want to exempt the employee from Provincial Tax.

  4. For the province of Ontario, specify 2 as the Number of Dependents Under Age 19 and 1 as the Number of Disabled Dependents.

  5. Click Save and Close.

How to Create an Association

You must associate the calculation card with a tax reporting unit (TRU). You must also associate the card to each employment assignment or term. A person with multiple assignments can have one TRU for each assignment, or each TRU can have one assignment or term. You can't enter multiple TRU's to an assignment or term.

  1. In the Calculation Card Overview pane, click Associations.

  2. Click Create in the Associations section.

  3. In the Create Association window, select InFusion 1, the TRU responsible for reporting deductions for this employee.

  4. Click Save to save the association.

    Note: You must save the association before you can create association details.

How to Create Association Details

You must associate calculation components with employment assignments or terms.

  1. In the Association Details section, click Create.

  2. On the Create Association Details window, select E300100008926055 in the Assignment Number field.

  3. Repeat steps 1 and 2 for each assignment.

  4. Click Save and Close.