Concept: Taxable Pension Income
Workday provides calculation elements to help you prepare pension income taxable calculations.
They enable you to ensure amounts are on the correct pay component related calculation
(PCRC) before year end.
Pay Component Groups
Use these Workday-delivered pay component groups to return numeric values for
specific earnings reported with the appropriate tax calculation:
- Pension Income RL-2
- Pension Income T4A
Validations on the new pay component groups ensure that you don't enable combinations such as
pension and bonus.
PCRCs
These Workday-delivered PCRCs are available:
- Exempt Wages RL-2
- Exempt Wages T4A
- Regular Tax RL-2
- Regular Tax T4A
- Subject Wages RL-2
- Subject Wages T4A
- Taxable Wages RL-2
- Taxable Wages T4A
Pension Wages for Tax Calculation
Workday references the
Pension Wages for Tax
Calculation
value on the View Payroll
Tax/Allowance Data
report to determine whether to launch the pension
wages tax calculation for federal, provincial, and Quebec income tax.