Setup Considerations: Successor Employer Company Relationships (CAN)
You can use this topic to help make decisions when planning your configuration and use of Canada successor employer company relationships. It explains:
- Why to set it up.
- How it fits into the rest of Workday.
- Downstream impacts and cross-product interactions.
- Security requirements and business process configurations.
- Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.
What It Is
Successor employer for Payroll for Canada enables you to consider a worker's employment continuous between a previous company and the company that immediately succeeds it through acquisition. A worker's deducted, remitted, or paid amounts under the Canada Pension Plan or the Employment Insurance Act, or both, from the predecessor company are considered in the annual limit and credit calculations by the successor employer.
Business Benefits
- You can load the worker tax elections by EIB for the predecessor company instead of adding them for each worker, saving time on data entry.
- Workday:
- Considers wages paid by the predecessor company, instead of starting them over, when determining limits for taxes like:
- CPP/CPP2
- QPP/QPP2
- EI
- QPIP/QPIP (ER)
- Includes wages paid only by the successor company when tax filing.
Use Cases
You can continue your payroll and tax reporting in a new relationship whenever you acquire companies.
Questions to Consider
Questions | Considerations |
|---|---|
Has the successor company received a Canada Pension Plan (CPP) or Employer Insurance (EI) ruling from the Canada Revenue Agency? | If yes, create a manual (off-cycle) payment. See: Create Manual Payments. To load large quantities of worker data, use the Off-Cycle Pay Input EIB. See: Concept: Import Payment Off-Cycle EIB. You must obtain permission from the Canada Revenue Agency to proceed with successor employer. |
Does the predecessor company need to be in Workday? | No. But you must obtain the year-to-date values for these pay components:
Then, create a manual (off-cycle) payment for the workers using the values obtained from the predecessor company. You must create this off-cycle payment before you proceed with on-cycle payments in the successor employer. |
Have you completed the workers' first on-cycle pay in the successor company? | If yes, you can't continue using Successor Employer for Canada this year. You must enter the predecessor values for your worker prior to the first on-cycle payment with the successor. |
Recommendations
- Confirm your workers' tax elections and withholdings are correct.
- Verify your off-cycle payroll entries before you complete the first on-cycle payment for workers in the successor company.
Requirements
- Confirm any worker transfers in to or out of Quebec to ensure you're accounting for CPP or QPP contributions that need to be reported.
- You must obtain a Canada Pension Plan (CPP) or Employment Insurance (EI) ruling from the Canada Revenue Agency (CRA) before you can apply this functionality to successor employers.
- You must process an off-cycle payroll for your predecessor company workers in the successor company to capture the year-to-date predecessor values prior to completing your first on-cycle payroll in the successor company.
- Verify workers have no negative values entered or values over the maximum annual limits.
- You can use Successor Employer more than 1 time per year. Only consider the values from the immediate predecessor company when entering predecessor values.
Limitations
If you use overrides for deductions that Workday configures (CPP/CPP2, QPP/QPP2, EI, QPIP), Workday recommends you don't use this feature for the remainder of 2024.
Tax forms for the predecessor company come from the predecessor company. The workers’ year-to-date withholdings are not merged with the successor company.
You can't modify this relationship type once you've completed a payroll.
Workday doesn't support successor employer company relationships for workers who have an international assignment position in Canada.
Workday doesn't carry over prior withholding order limit balances, you must enter the information for withholding orders for your new workers.
Tenant Setup
No impact.
Security
Domains | |
|---|---|
Process: Off-Cycle (Manual Payment) domain in the Core Payroll functional area. | Enables you to create an EIB for a large volume of workers using web service. |
Business Processes
No impact.
Reporting
Reports | Considerations |
|---|---|
Tax Remittance Details Tax Remittance Periods (CAN) Tax Remittance Summary Tax Remittance Summary - Federal Tax Remittance Summary - Quebec | Includes remittance details from the successor employer only. |
Integrations
Web Services | Considerations |
|---|---|
Process: Off-Cycle (Manual Payment) | Provides the ability to input year-to-date predecessor amounts for all employees in the successor company. |
Connections and Touchpoints
No impact.
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.