Indian Exempt Status

Under certain conditions, an employee with an Indian Exempt Status may be eligible for federal and provincial tax exemptions. In this case, capture their exempt status to stop the tax calculations. However, payroll tax is still deducted for Nunavut and Northwest Territories.

Capture the Indian Exempt Status of the employee during the new hire process. You can capture this information using the check box in the Additional Information section under Payment Details of the Hire an Employee - Employment Information page. You can also update this information using the Payroll Relationships task. To exempt the employee from federal and provincial taxes, use the check box in the Additional Information section of Payment Details under Assignment.

If an employee has multiple assignments and at least one assignment has a status of Indian Exempt Status, the Indian Exempt Status displays as Yes. The status is displayed on the personal calculation card of the employee. The employee is then exempted from federal and provincial tax. You can't update this status on the personal calculation card because it's only a display field.