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Administrator Guide
Last Updated: 2025-05-30
Example: Calculate AD&D with Sales Tax (CAN)

Example: Calculate AD&D with Sales Tax (CAN)

This example illustrates 1 way to define an AD&D plan where there's no cost to the employee but the benefit is taxable to the employee.
The company offers and pays the premiums for accidental death and dismemberment (AD&D) insurance for its employees. The company has offices in, and employs people from, many different provinces including Quebec.
Configure an employer-paid deduction for which the employer taxes employees on imputed income.
  • Set up sales taxes that apply to the company and provinces.
  • Define an AD&D benefit plan.
  • Security:
    • Set Up: Payroll - Company Specific (Taxes) - CAN
       domain in the CAN Payroll functional area.
    • Set Up: Payroll (Calculations - Payroll Specific)
       domain in the Core Payroll functional area.
  1. Access the
    Create Deduction
     task.
  2. Enter these settings:
    Option Description
    Name
    AD&D - Employer Paid [CAN]
    Code
    AD&D_ER
    Country
    Canada
    In order for the calculation to work, you must flag it for use in Canada.
  3. Enter these settings on the
    Effective Dated
     tab:
    Option Description
    Effective Date
    Current date
    Worker Eligibility
    Row 1:
    • Benefits: Employer Cost (taxable) and <> 0
    • Processing Primary Job
    Row 2:
    • Payroll Input Exists for Pay Component
    Calculation
    Original Amount + Sales Tax (CAN)
    Proration
    (Optional) Prorate Using Days Worked
    Retro Calculation
    (Optional) Recalculate during Retro
    Calculation Worktag
    Province
    Worktag Type
    Work
    This prompt displays automatically after you save changes to the task. The
    Work
     type displays for deductions configured with the Employer Paid Benefits pay component group.
  4. Enter these settings in the
    Related Calculations
     grid:
    Related Calculation
    Groups
    Default Calculation
    Override Calculation
    Results - Display Current / Current and Balances
    Original Amount
    RST Taxable [CAN]
    Select the calculation generating the amount. Example:
    Benefits: Employer Cost
    .
    Display Current
    Sales Tax (CAN)
    Sales Tax on Original Amount (CAN
    Display Current
  5. Enter these settings on the
    Non-Effective Dated
     tab:
    Option Description
    Groups
    • Benefits During Leave
    • CPP Taxable [CAN]
    • CPP2 Taxable [CAN]
    • Employer Paid Benefits [GBR CAN USA]
    • Income Taxable (Withhold Taxes) [CAN]
    • ONEHT Taxable [CAN]
    • QHSF Taxable [CAN]
    • QPP Taxable (CAN]
    • QPP2 Taxable [CAN]
    • Quebec Taxable (Withhold Taxes) [CAN]
    Calculation Details
    Resolve Effective Date
     >
    Based on Period End Date
Workday calculates the
AD&D - Employer Paid [CAN]
 deduction for eligible workers and displays this amount on worker pay results as imputed income for provincial and federal taxation.