Canada Tax Authority (PR08.1)

Use Canada Tax Authority (PR08.1) to define a Canadian tax authority that provides a link between the Lawson Payroll system and the Business Software, Inc.(BSI) tax tables.

Note: Before you define Canada tax authorities, you must have BSI installed. You must define your BSI tax codes before you create a Canadian tax authority. You define BSI tax codes within the BSI system. See your BSI Procedures Manual for more information.

Process at a Glance

Define BSI tax codes in the BSI system. For more information see your BSI Procedures Manual.
Define tax authority on this form (PR08).
Define deduction class (PR02).
Define required code (PR03).
Define deduction (PR05).

Processing Effect

The Lawson Payroll system works with the third party application BSI to correctly calculate taxes. BSI maintains the correct tax tables while Lawson performs the calculations to deduct taxes. You must define BSI tax codes before you can create a Canada tax authority. You also must maintain BSI tax tables to ensure the Payroll system calculates the correct tax amounts. See your BSI Procedures Manual for more information.

More Information

You define tax authorities for:

Federal authority for Revenue Canada
Federal authorities for each province that has a tax obligation to the federal government
Provincial authorities for each province with reporting requirements separate from Revenue Canada

Before you set up your tax authorities, think about the naming convention you want to use. Most Lawson clients use the same code for the tax authority as they do for the BSI tax code. Using the same name makes it easier to remember which tax authority is linked to which BSI tax code.

You assign a tax authority to tax deductions on Deduction (PR05.1). The BSI tax code you assign to this tax authority determines how the Payroll application calculates the deductions you assign the tax authority to.

You also assign a tax authority to garnishment rules on Canada Garnishment Rules (PR46.2). You can override the tax authority on Canada Employee Garnishment (PR47.1). The tax authority on the garnishment represents the governing body with the authority to garnish wages.

Access the Minimum Wage subform to define a minimum wage and its effective date for the tax authority.

A tax authority can also be defined to establish garnishment rules only.

Reports are available in the BSI system that provide listings of BSI tax codes.