Overview of Loading Balance Adjustments for Canada
Consider the following points when performing balance adjustments for Canada.
Perform balance adjustments to:
- Correct the entries from the Load Initial Balances process that were uploaded during conversion.
- Correct balances that were loaded:
- With incorrect tax balance dimensions
- With incorrect province tax jurisdiction
- With over or understated taxable limits
- Correct balances that were not loaded at all and a payroll was process for the employee.
- Load balances to Gross-to-Net Calculations done by a third-party, but the employer is still responsible to report, such as Disability Pay, Stock Options, Moving and Relocation, and so on.
- Zero out arrears upon termination
Considerations for Adjusting Balances for Canada
In addition to the general guidance provided in the Overview of Loading Balance Adjustments topic, consider the following when adjusting balances for Canada:
- You must process terminated employees in a separate batch with a process date prior to the date they were terminated.
- If an employee has transferred between provinces, you must create a separate adjustment line item for each province. Adjustments use the province as a context.
- Fields capturing geography codes to indicate the province require the actual geocode. Refer to the Geography Codes for Canadian Provinces topic.
- If an employee has transferred from one tax reporting unit (TRU) to another within the calendar year, and you need to perform a balance adjustment for either TRU, then you must perform a separate adjustment for each, using a process date as of when the transfer took place. When defining the adjustment in the batch, you must enter the Calculation Breakdown Component value. This value is the same as the TRU you are currently adjusting. There is a 1-to-1 relationship between the TRU and the Calculation Breakdown Component. For example, if the TRU is CA MAIN TRU, then the Calculation Breakdown Component must also be CA MAIN TRU.
Contexts for Adjusting Balances for Canada
For the purposes of balance adjustment, some of the dimensions require different contexts for the components of the dimensions.
Statutory Report Type
The Statutory Report Type input value defines the associated Reporting Type for end-of-year reporting for earnings and deductions. The report types are predefined for all seeded secondary classifications for Canada, and if you create a secondary classification, this value is mandatory. This context is required for some dimensions.
Values for the Statutory Reporting Type context are:
- T4_RL1 (Meaning = T4 and RL-1)
- T4A_RL1 (Meaning = T4A and RL-1)
- T4A_RL2 (Meaning = T4A and RL-2)
Reporting Time Period
The Reporting Time Period input value defines a unique value for each pay period, automatically generated by the payroll run. The context would be used in a scenario where a payroll transfer occurs. It only applies to CPP and QPP. The Reporting Time Period value is derived by:
- Current pay period number concatenated with pay periods in the year
- For example, the Reporting Time Period for a monthly payroll processed in February is “212”
- 2 = Current pay period of February + 12 = 12 monthly payrolls in the year
Balance Adjustment Elements
When performing adjustments on elements, the process uses one of the following to adjust the balance:
- Primary, or base, element
- Results element (The Results element is a secondary element created when you define the primary element.)
This table outlines which element and input value to use to adjust balances for each primary and secondary classification.
| Primary Classification | Secondary Classification | Element Generated from the Template | Input Value |
|---|---|---|---|
| Standard Earnings | All | <User element> Results | Earnings |
| Supplemental Earnings | All | <User element> Results | Earnings |
| Taxable Benefits | All | <User element> Results | Earnings |
| Nonpayroll Payment | All | <User element> Results | Earnings |
| Pretax Deductions | All | <User element> Results | Pay Value |
| Employee Tax Deductions | All | <Seeded element> | <Tax> Withheld |
| Employer Liabilities | All | <User element> | Pay Value |
| Involuntary Deductions | All | <User element> Results | DeductionsCalculated |
| Involuntary Deductions | All (Fees) | <User element> Organization Fee Results | FeeCalculated |
| Involuntary Deductions | All (Fees) | <User element> Person Fee Results | FeeCalculated |
| Involuntary Deductions | All (Fees) | <User element> Processing Fee Results | FeeCalculated |
| Voluntary Deductions | All | <User element> Results | Pay Value |