Calculating employee wages for EHT

The wages on PR05.4 correspond to the employer’s gross annual payroll for the tax year. These wages will be passed to the tax engine to determine the applicable tax rate that will be used to calculate the EHT total.

Company

Select the HR company for which you want to report and calculate prior gross payroll wages. The Payroll application uses these wages to calculate the employer health tax. This field is required.

Reporting Entity

Select Company to only select records for the report entity company. If you select Company, leave the RE Process Level blank.

Select RE Process Level to select records for the report entity process level you specified in the RE Process Level field.

RE Process Level

If you selected RE Process Level in the Reporting Entity field, select the report entity process level. Otherwise, leave this field blank.

Income Deduction

Select the province income deduction that holds annual gross wages.

Payment Date (Start Date)

Type the first payment date of the date range for which you want to report wage totals. This field is required.

Decision/Impact If you make a selection in this field but do not make a selection in the end date field, the Payroll application only reports and calculates gross wages for this date.

If you select a payment date range that includes dates that you already calculated wages for, Payroll calculates the wages again.

For example, if you selected the date range 01/01/00 to 12/31/00 the last time you ran PR125, and this time you select the dates 01/01/00 to 12/31/01, Payroll calculates the wages for 01/01/00 to 12/31/00 twice. Be cautious of overlapping date ranges. It could result in your tax liability being over stated.

Payment Date (End Date)

Type the last date of the date range for which you want to report wage totals.

EHT Deduction

Type the EHT deduction. The annual gross wages that PR125 will calculate for the Income deduction will be stored on this EHT deduction on EHT Wages (PR05.4.)

Effect Date (Start Date)

Type the first date of the date range that you want to populate the effective dates fields on EHT Wages (PR05.4). This field is required.

The date you select in this field becomes the beginning effective date for the deduction. The payment date you select on Earnings and Deduction Calc (PR140) must fall within this date range in order for the EHT deduction to be calculated.

End Date

Type the last date of the date range that you want to populate the effective dates fields on EHT Wages (PR05.4).

The date you select in this field becomes the beginning effective date for the deduction. The payment date you select on Earnings and Deductions Calc (PR140) must fall within this date range in order for the EHT deduction to be calculated.

Update

Select whether to create a report of changes or update the system with changes.

If you select Yes the system creates a report of changes AND calculates the income tax wages.

Caution: 

If the Payment Date range overlaps any previous runs of this report and you select Yes in this field, Payroll overwrites the previous report.

If you select No, the system only creates a report of changes that will be made when you run in Update mode.

You might want to run the report in Report mode first to make sure the changes with be made correctly.