Enterable Values on the Personal Calculation Card

Use the predefined Tax Credit Information personal calculation card to define components to calculate, process, and report taxes for Canada. Aspects of the card include:

• Component Groups and Calculation Components

• Associations

• Calculation Card Overrides

Some values entered on a calculation card override values defined in a calculation value definition. For example, you can override an employee's exemption rules for protected pay for a legislative data group on their Involuntary Deduction card.

These are the two component groups that Canadian statutory calculations are broadly categorized into:

• Federal

• Regional

Statutory calculations are based on the taxability rules and tax deduction rates at both the federal and provincial levels. For all provinces except Quebec, the federal and provincial taxes are collected as a single component: federal tax. For Quebec, they're separated into two components: federal tax and provincial tax. In addition, you also have applicable provincial and payroll taxes depending on your province of employment.

Component groups appear in the Calculation Card Overview section of the Calculation Cards page. Each component group supports a set of calculation components that capture data used to process the calculation.

Federal Component Group

The federal calculation group has these three calculation components:

• Federal Tax

• Employment Insurance (EI)

• Canada Pension Plan (CPP)

You can enter information in these three sections of the tax card:

• Federal Tax Information

• Tax Exempt Information

• Commission Information

Federal Tax Information

The Federal tax calculation is applicable in all provinces. The values you can enter for Federal Tax Information include:

• Total Claim Amount value represents the federal basic personal amount. This amount is displayed on the calculation card. Each year the basic amount is updated. If an employee has only the basic personal amount, they need not enter anything in the Total Claim Amount field.

  If the employee has a total claim amount different than the basic amount, enter that amount here. This override isn't reset to the basic amount or updated at the beginning of the year. It remains the same until modified by you. In this case, enter 0 for the total claim amount.

  If an employee states that their total expected income from all sources is less than the total claim amount, the employee is exempt from tax deductions. This includes federal, provincial, or territorial taxes.

• Annual Deduction value represents a tax reduction relating to child care and alimony expenses that's authorized by a tax services office, government, or court. It applies to federal tax calculations.

• Federal Tax Rate overrides the federal tax calculations.

• Prescribed Zone Deduction: An employee living in a prescribed zone is eligible for additional tax exemptions. Enter the deductions in the Prescribed Zone Deduction field on the employee's personal card. For Quebec, enter the deduction in the Designated Remote Area Deduction field.

• Federal Tax Amount is an override to the federal tax calculations.

  The Federal Tax Amount does the following:

  • In a payroll that only processes elements with regular taxation, the Federal Tax Amount replaces the tax calculation.

  • In a payroll where only elements with nonperiodic taxation are processed, the Federal Tax Amount replaces the tax calculation.

  • In a payroll run that processes elements with regular and nonperiodic taxation, the Federal Tax Amount replaces the tax calculation for elements with regular taxation. The application calculates tax on the elements with nonperiodic taxation independently.

  • In a payroll run that processes elements with lump sum taxation, the Federal Tax Amount is ignored.

  If there is an Additional Tax value for the employee, the application deducts Additional Tax in addition to the Federal Tax Amount.

To exempt an employee from paying federal tax:

• Select the Federal Tax Exempt check box on the calculation card.

• If the employee is Status Indian, select the Indian Exempt Status check box in the Payment Details: Additional Information section of the Hire an Employee - Employment Information page. Selecting the check box stops the tax from calculating.

• Other Tax Credits: This is an amount specified by the government to reduce income tax amount. Enter the other tax credits amount on the tax card.

• Commission Information: The values you can enter for Commission Information at the federal level include the following:

  • Annual Income Including Commission: The expected income of a commissioned employee in the calendar year. Derive this value from the employee's TD1X form and enter this value on the tax card.

  • Commission Expenses: The expected expenses of a commissioned employee in the calendar year. Derive this value from the employee's TD1X form and enter it on the tax card.

• Estimated Annual RRSP: The estimated amount of RRSP an employee is expected to contribute in the calendar year.

Tax Exempt Information

The values you can enter in this region are:

• CPP Exempt: Use this check box to indicate if the employee is exempt from CPP tax calculations.

• CPP Revocation Date: This date is applicable to those who have elected in a previous year to stop contributing to CPP and want to revoke that election. CPP contributions will begin after this date. If the date isn't the first of the month, CPP contributions will begin from the month following this date.

• CPP Election Date: This date is applicable to those who are currently receiving a CPP or Quebec Pension Plan (QPP) retirement pension and want to stop the contributions.

  The above two date fields become enterable if the person is between 65 and 70 years of age.

• CPT30 Election Date: If you pay an employee after the CPP Election Date on their tax calculation card, the application prorates the CPP Withheld and CPP Taxable annual maximum limits. The prorated amounts are based on the number of months they were subject to CPP in the year. If the employee contributions are over this limit, the CPP Withheld is refunded. The application adjusts the CPP Taxable amount to bring the year-to-date values in line with the prorated limits.

  Include in the CPP Excess balance, payments that are subject to CPP and are paid to the employee after the CPP Election Date.

• EI Exempt: Use this check box to indicate if the employee is exempt from EI tax calculations.

• Indian Exempt Status: Use this check box to indicate if the employee has an Indian status.

  Capture this information at the assignment level. If the employee has multiple assignments and if one of them has Indian Exempt Status, the employee is exempt from federal and provincial tax deductions.

• Federal Tax Exempt: Use this check box to indicate if the employee is exempt from federal tax calculations.

Regional Component Group

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.

• Payroll Tax: Payroll tax is applicable only in Nunavut and Northwest Territories. Select the Payroll Tax Exempt check box to exempt an employee from this tax.

• Provincial Tax: Provincial tax is an income tax applicable only for Quebec. Select the Provincial Tax Exempt check box to exempt the provincial tax deductions for this employee. You can override the tax calculation with a flat amount or rate.

• Quebec Taxes: For all provinces other than Quebec, collect the federal and provincial taxes as a single component: federal tax. For Quebec, separate them into two components: federal tax and provincial tax.

  Quebec Pension Plan (QPP) is similar to CPP and is applicable only in the province of Quebec.

• Quebec Parental Insurance Plan (QPIP) contribution is for parental leaves in Quebec.

  You can select the relevant check box to exempt the employee from both or either QPP or QPIP tax calculations.

• Ontario Tax Credits: Employees in the province of Ontario are eligible for an additional reduction in their taxes depending on the following:

  • Number of the employee's dependents under the age of 19

  • Number of disabled dependents the employee supports

• Commission Information: The values you can enter for Commission Information for Quebec include the following:

  • Annual Commission Income: The expected commission income of a commissioned employee in the calendar year. Derive this value from the employee's TP1015R form and enter this value on the tax card.

  • Commission Expenses: The expected expenses of a commissioned employee in the calendar year. Derive this value from the employee's TP1015R forms and enter it on the tax card.

• Labour Fund Contributions: A tax calculation reduction applicable only when the employee has deductions related to labour-sponsored funds. Enter the annual value of the contribution on the tax card. This is applicable to British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Quebec, Saskatchewan, and Yukon.

  Note: For Quebec, there is a 15 percent tax credit on the value entered.

• Additional Tax: This value represents the amount an employee elects to have deducted as extra tax, in addition to the tax calculation. Enter the amount in Canadian Dollars only and it applies to Quebec only. Derive this value from the forms and enter it on the tax card.

• QPP Exempt: Use this check box to indicate if the employee is exempt from QPP tax calculations.

• QPP Revocation Date: This date is applicable to those who have elected in a previous year to stop contributing to QPP and want to revoke that election. QPP contributions will begin after this date. If the date isn't the first of the month, QPP contributions will begin from the month following this date.

• QPP Election Date: This date is applicable to those who are currently receiving a Quebec Pension Plan (QPP) or a Canada Pension Plan (CPP) retirement pension and want to stop the contributions.

  • The above date fields become enterable if the person is between 65 and 72 years of age.

Associations

Associate a calculation card with a tax reporting unit (TRU). The association happens automatically if you select the TRU in the payment details. This association enables the payroll process to apply rules and rates defined for the TRU when calculating deductions. It also controls the aggregation of deductions for tax reporting.

Association details link calculation components with terms or assignments. Each component must be associated with one or more assignments in a 2-tier model.

Change TRU for an Assignment

To end date or delete association detail records, use the Delete button in the Association Details section on the Tax Credit Information card . The association detail records are for a pre-existing assignment on the tax card. Select any of these options as required.

• Delete Record Permanently to delete the association detail record entirely.

• Delete Date-Effective Record to delete the association detail record as of the entered effective date.

• End Date to end date the association detail record (defaults to the effective date).

  Note: If a record contains an end date, as of the effective date of the change, the card displays the Clear Date option.

Consider the following when end dating an association:

• You can only delete or end date the association detail records.

• You can't delete or end date association records if it's processed in a payroll.

To transfer an assignment from one TRU to another:

1. End date the assignment one day before the TRU transfer effective date.

2. Create a new association record for the new TRU.

3. Add the assignment to the new TRU association on the TRU transfer effective date.

Calculation Card Overrides and Lump Sum Rate Overrides

Calculation cards at different levels capture different information. The information defined at a lower-level overrides value defined at higher levels. An entry defined on the personal calculation card overrides the values defined at the TRU or payroll statutory unit level.

Lump Sum Overrides

Use these fields on the employee's tax card to enter overrides to the federal or provincial lump sum rates:

• Federal Lump Sum Rate

• Provincial Lump Sum Rate (Quebec only)

Enter a value to override the prescribed rates used for calculation of taxes for lump sum payments. The lump sum payments are spread across multiple pay periods. If you don't override the rate, the deduction calculation uses the prescribed rate.