Jurisdictions

A jurisdiction represents a physical territory, such as a country, province, or city, where a particular piece of legislation applies.

You must set up jurisdictions before you create registrations, because a jurisdiction is required in the registration process. The jurisdiction has a start date and end date to show when the jurisdiction is effective and when you can register against the jurisdiction.

A tax jurisdiction is a geographic area where a tax is levied by a specific tax authority. You must set up at least one tax jurisdiction for a tax before you can make the tax available for payroll transactions.

Jurisdictions

Canada Federal Tax, Canada Income Tax, and Quebec Provincial Tax are predefined jurisdictions. Canada Federal Tax is set as the identifying jurisdiction. Canada Income Tax is predefined by the Financials and is used outside of HCM. The other two jurisdictions are predefined by the Canada legislation team.

Identifying Jurisdiction

The identifying jurisdiction is usually the first jurisdiction that the legal entity must register with, to be recognized in its territory. The registration to the identifying jurisdiction of the legal entity territory is called the identifying registration.

This table lists the other jurisdictions that have been identified for Canada and the type of taxes they use. You can define other jurisdictions as required, depending on the provinces that you operate in.

Jurisdiction	Territory	Legislative Category	Purpose
Canada Federal Tax	Canada	Federal	Canada Pension Plan
Canada Federal Tax	Canada	Federal	Employment Insurance
Canada Federal Tax	Canada	Federal	Federal Tax
Quebec Provincial Tax	Quebec	Provincial Tax	Quebec Pension Plan
Quebec Provincial Tax	Quebec	Provincial Tax	Quebec Parental Insurance Plan
Quebec Provincial Tax	Quebec	Provincial Tax	Provincial Tax
Northwest Territories Payroll Tax	Northwest Territories	Income Tax	Payroll Tax
Nunavut Payroll Tax	Nunavut	Income Tax	Payroll Tax
British Columbia Workers' Compensation	British Columbia	Workers' Compensation	Workers' Compensation
Alberta Workers' Compensation	Alberta	Workers' Compensation	Workers' Compensation
Saskatchewan Workers' Compensation	Saskatchewan	Workers' Compensation	Workers' Compensation
Manitoba Workers' Compensation	Manitoba	Workers' Compensation	Workers' Compensation
Ontario Workers' Compensation	Ontario	Workers' Compensation	Workers' Compensation
Quebec Workers' Compensation	Quebec	Workers' Compensation	Workers' Compensation
Newfoundland and Labrador Workers' Compensation	Newfoundland and Labrador	Workers' Compensation	Workers' Compensation
New Brunswick Workers' Compensation	New Brunswick	Workers' Compensation	Workers' Compensation
Nova Scotia Workers' Compensation	Nova Scotia	Workers' Compensation	Workers' Compensation
Prince Edward Island Workers' Compensation	Prince Edward Island	Workers' Compensation	Workers' Compensation
Yukon Workers' Compensation	Yukon	Workers' Compensation	Workers' Compensation
Northwest Territories Workers' Compensation	Northwest Territories	Workers' Compensation	Workers' Compensation
Nunavut Workers' Compensation	Nunavut	Workers' Compensation	Workers' Compensation
British Columbia Medical	BC (British Columbia)	Provincial Medical	Provincial Medical
Ontario Medical	Ontario	Provincial Medical	Provincial Medical
Quebec Medical	Quebec	Provincial Medical	Provincial Medical
Manitoba Medical	Manitoba	Provincial Medical	Provincial Medical
Newfoundland and Labrador Medical	Newfoundland and Labrador	Provincial Medical	Provincial Medical

Workers' Compensation

Workers' Compensation is an employer liability, calculated as a percentage of the assessable earnings and is subject to an annual maximum per employee. The annual maximum assessable value is different for each province and may change on a yearly basis. Certain industries and employees are exempt from this tax.

You can define multiple Workers' Compensation accounts for each province, with different rates for each account. Designate one account as the default account for a province.

Use the province of employment of the employee to determine the default account for the assignment. The liability is calculated under the default account for that province unless you make an override in the assignment record of the employee.

You can also define overrides for Workers' Compensation processing for a person at the job, location, or department.

Provincial Medical

Provincial Medical is an employer liability, used to administer provincial health plans for employees in the provinces of British Columbia, Quebec, Ontario, Manitoba and Newfoundland and Labrador. Different rules exist in each province for calculating the employer liability.

Certain employees are exempt from provincial medical calculations. Provincial medical calculations aren't processed for the exempted employees.

Separate agencies administer the liability for each province, and you can define multiple accounts for each province. Designate one account as the default account for a province.

Use the employee's province of employment to determine the default Provincial Medical account for the assignment. The liability is calculated under the default account for that province unless you make an override entry. You can make an override entry in the employee's assignment record, the department, or location.