Creating EHT deduction codes

  1. As payroll administrators, select Payroll > Administration > Setup.
  2. In the Structure pane, click Deductions.
  3. Click the Deduction Codes tab.
  4. Click Create.
  5. Specify this information:
    Deduction Code
    Specify an alphanumeric name of the deduction code.

    Optionally, provide a description of the deduction code.

    Deduction Type
    Select Tax.
    Country/Jurisdiction
    Specify CA or Canada.
  6. On the Detail tab, specify this information:
    Adjust Pay
    Select Employer Paid.
    Currency
    Specify which currency to process the deduction code.
  7. On the Processing Rules tab, specify this information:
    Arrears
    Select the outcome if there is not enough net pay to take the full deduction amount on a payment:
    • If you select a value that includes Net to Zero, then as much of the deduction as possible is taken until the net pay equals zero.
    • If you select a value that includes Create Arrears, then arrears deductions are created to be taken on a future payment.
    • If you select a value that includes No Arrears, then no arrears deductions are created.
    • If you leave this field blank, then the value that is defined on the deduction code is used.
    Process Arrears
    Optionally, select this check box to process arrears of the deduction code.
    Maximum Arrears To Process
    Optionally, specify the maximum number of arrears to process per pay cycle.
  8. On the Tax tab, specify this information:
    Tax Authority
    Select the provincial authority.
    Tax Category
    Specify 20 or Health Tax.
  9. Click Save.
  10. On the Employer Health Tax Exemptions and Wages tab, create a record by legal entity, legal establishment, and year.
    See Creating EHT exemptions and wages records.
  11. Click Save.
The EHT deduction is assigned to employees.
Note: The Mass Update Eligibility Group Deductions action can be run by eligibility group to assign tax and other type deductions to employees based on their meeting the group criteria. To access this action, select Payroll > Deductions > Maintenance > Eligibility Group Deductions.