Overview of Provincial Medical Liability Processing

The provincial medical liability processing that Oracle Fusion Human Capital Management for Canada supports include these provinces that have provincial medical coverage funded by the employer:

• British Columbia

• Manitoba
• Newfoundland and Labrador

• Ontario

• Quebec Health Services Fund

Each province has different rules for processing the provincial medical liability.

Employer premiums are calculated as a percentage of the provincial subject wages less any exemptions for the period. The wage basis rules define the subject wages for each province.

The liability is calculated differently for the different provinces as given here:

• Quebec - Only through the payroll process
• Newfoundland and Labrador - Only through the Provincial Medical Report
• British Columbia, Manitoba, Ontario - Through either the payroll process or the Provincial Medical Report

Quebec is the only province where the liability is calculated directly through the payroll process. All other liabilities are calculated through the Provincial Medical report. For employees outside of Quebec, the subject wages are accumulated by account per payroll run. Employer premiums are calculated within the report by multiplying the provincial subject wages for the period by the rate defined for the account.

The account number and name isn't captured for Quebec because the Quebec Identification Number (QIN) is used as the account number.

The provinces and the corresponding agency that administers the provincial medical are predefined in the application. Use the Manage Legal Entity HCM Information task in the Setup and Maintenance work area to define the provincial medical account and the related information at the payroll statutory unit (PSU) level.

The details you define at the PSU level are valid for all the tax reporting units associated with the PSU.

An employee's province of employment determines which provincial medical account is associated to their term or assignment. The default account is used to calculate the provincial medical liability. You can override the Provincial Medical Account Number at the employee's assignment or term, the department or location.