Examples of Exempting an Employee from Provincial Medical Premiums

Provincial Medical Exempt represents wages that are exempt from the wage basis rules, or wages that have been exempted from provincial medical at the assignment. This topic illustrates two scenarios when you can exempt an employee from provincial medical premiums.

Scenario

While defining the employee's Person and Employment information during the new hire process. Use the Hire an Employee task under New Person in the Workforce Management work area. Select the Provincial Medical Exempt check box in the Assignment section of the Hire an Employee: Employment Information page of the employee, to indicate if the assignment of the employee should be exempt from the provincial medical employer liability calculations.

Scenario

Certain employees may be exempt from provincial medical premiums. Provincial medical calculations aren't processed for the exempted employees. Use the Payroll Relationships task in the Payroll Calculation work area to exempt the employee after the hire process. Select the Provincial Medical Exempt check box at the assignment level while updating the assignment record on the Manage Person Details page.

If an employer is exempt from provincial medical liability, you need not set up the provincial medical account information for the PSU. Provincial Medical balance accumulation and calculation of liability occurs only when the account setup is completed and the default account is set up.