Viewing and modifying Canada employee tax deductions

Use Employee Canada Taxes (PR13.5) to maintain Canada employee tax information for tax deductions and government reporting information. If information about the employee record changed, then use the required deduction create action on PR13.5 to modify or change tax deductions for employees. See Assigning required tax deductions to existing employees.

The Canada employee tax information is initially defined in the Tax tab on Employee (HR11.1).

You must define your tax deductions before you can assign them to an employee on this form. See Setting up deduction structure. Use this procedure to view and modify Canada employee tax deductions.

  1. Access Employee Canada Taxes (PR13.5).
    Note: Any changes you make on this form might change the way the Payroll calculates tax deductions for the employee.
  2. Select a Company, Employee, and Deduction to add a deduction. Use these guidelines to specify the field values:
    Note: If you change the tax province, workers' compensation province, business number code province, or Quebec Ent Number Group on this form, then the province or group changes on Employee (HR11.1). Conversely, any changes to these fields on HR11.1 are reflected on Employee Canada Taxes (PR13.5).
    Tax Province

    Select the tax province that you want to use for employee taxes.

    WC Province

    Select the workers' compensation province that you want to use for employee taxes.

    PR Acct Number Group

    Select the business number group used to calculate taxes for this employee.

    If you enter a business number group in this field, then it overrides the group on Employee (HR11.1) before you can enter it on this form.

    Note: The business number group must exist on Canada Business Numbers (HR00.2)
    Quebec Ent Number Group

    Select the Quebec enterprise number group used to calculate taxes for this employee.

    Note: The Quebec enterprise number group must exist on Quebec Enterprise Numbers (HR00.3) before you can enter it on this form.
    Group Code

    A code to override the tax formula for specific employees.

    Estimated Remuneration

    If the employee is paid by regular commission, then specify the total estimated annual earnings submitted by the employee.

    You should update this field and the Estimated Expenses field annually for employees who are paid commissions.

    Using the TD1 form, the employee supplies the employer with the data to complete this and the Estimated Expenses field.

    Estimated Expenses

    If the employee is paid by regular commissions, then specify the total estimated annual expenses submitted by the employee.

    Annual Lump Sum Amount

    If the employee is paid a lump sum payment, then specify the total annual lump sum earnings being paid to the employee during the current year.

    Annual RRSP/RPP Amt

    If the employee is paid a lump sum payment, then specify the total annual amount of eligible RRSP/RPP transfers for the employee during the current year.

    Res

    Select the type of resident the employee is in the tax authority associated with this deduction. If left blank, then the field will set Resident as default.

    These are the valid values:

    Y-Resident

    1-Nonresident Receiving Pension

    2-Nonresident Continuous Employment

    3-Nonresident Noncontinuous Employment

    Net Claim Amount

    Specify the net claim amount for this deduction from the Personal Tax Credits Return form TD1.

    The value for this field comes from the total of all personal tax credit amounts from sections 1 to 14 of the Personal Tax Credits Return form TD1.

    Additional Tax Amount

    Specify a dollar amount to take in addition to the amount calculated for this deduction.

    Replacement Percent

    Specify the percent that you want to use to replace the amount Payroll calculates for this deduction.

    Tax Exm

    Select whether the employee is exempt for taxes deducted using this deduction.

    If you select Yes, then the Payroll does not take taxes using this deduction, but it does track taxable wages.

    This is most often used by students making less than the net claim amount.

    Addl Info., Provincial, Inflation Adjust, Dates Tab, Transfer Tax Tab

    Select values to provide additional information.

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