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Administrator Guide
Last Updated: 2025-01-10
Set Up Company Province and Territory Taxes (CAN)

Set Up Company Province and Territory Taxes (CAN)

  • Define workers compensation codes.
  • Record the company business number (federal tax ID) in Workday.
  • Set up federal tax reporting elections for the company.
  • Security:
    Set Up: Payroll - Company Specific (Taxes) - CAN
     domain in the CAN Payroll functional area.
Enter company-specific data for calculating and reporting workers compensation, sales tax, and other employer-paid provincial taxes.
Workday uses this data to generate reports. These reports have the tax amounts, subject wages, and other figures you must report to tax authorities as part of your tax filing.
Start dates control when tax elections go into effect in Workday. When a tax election changes, enter an
End Date
 for the election that is no longer in effect. Then add a row for the new
Start Date
 and all information for the new election. When calculating payroll, Workday applies the tax elections in effect on the worker's payment date.
  1. Access the
    Edit Company Province CAN Tax Reporting
     task.
  2. Select the
    Company
     and
    Province
    .
    Tabs and sections displayed vary by province.
  3. Enter information for employer-paid income taxes on the
    Province
     tab.
    The provincial education and health taxes exclude TD1-IN exempt wages.
    The
    Province
     tab displays for these provinces:
    Option Description
    British Columbia
    (Optional) In the
    Payroll Tax
     or
    Health Tax
     sections, select the
    Calculate Tax
     check box to calculate payroll tax or health tax amounts based on subject wages.
    Enter the annual exemption and tax rate for the
    Employer Health Tax
    , or select
    Exempt
    . The
    Start Date
     must be the first day of a calendar year.
    Manitoba
    (Optional) In the
    Payroll Tax
     or
    Health Tax
     sections, select the
    Calculate Tax
     check box to calculate payroll tax or health tax amounts based on subject wages.
    Enter the annual exemption amount and tax rate for the
    Health and Post Secondary Education Tax Levy
    , or select
    Exempt
    . The
    Start Date
     must be the first day of a calendar year.
    Newfoundland and Labrador
    (Optional) In the
    Payroll Tax
     or
    Health Tax
     sections, select the
    Calculate Tax
     check box to calculate payroll tax or health tax amounts based on subject wages.
    Enter the annual exemption amount for the
    Health and Post Secondary
     tax or select
    Exempt
    . The
    Start Date
     must be the first day of a calendar year. To view the tax rate, access the
    View Payroll Tax / Allowance Data
     report.
    Ontario
    (Optional) In the
    Payroll Tax
     or
    Health Tax
     sections, select the
    Calculate Tax
     check box to calculate payroll tax or health tax amounts based on the subject wages.
    For the Ontario health tax, associate the health tax number of the employer with a reference number. Then enter the exemption amount and tax rate, or select
    Exempt
    . The
    Start Date
     must be the first day of a calendar year. Add multiple rows if the company has more than 1 set of reporting requirements.
    Québec
    In the
    Withholding
     section, enter the numbers needed to report employee withholding for Québec personal income tax:
    • The 10-digit
      Québec Enterprise Number
       assigned by the Registraire des entreprises (REQ) or the clerk of the Superior Court. Example: 1187654321.
    • The
      Identification Number
       provided by Revenu Québec. It's used for remittances, similar to the payroll account number for Canada Revenue Agency. Example: 1245678904RS0001.
    • The
      Reference Number
       that's aligned with the Canada Revenue Agency federal reference numbers.
    Select the Regular or Year-to-Date
    Bonus Tax Method
    . Workday defaults to the Regular method when you don't make a selection.
    To calculate the bonus tax using the:
    • Regular Bonus Tax Method
      , Workday determines the annual taxable income by multiplying the current periodic taxable wages by the number of pay periods in the year.
    • YTD Bonus Tax Method
      , Workday determines the annual taxable income by multiplying the current periodic taxable wages by the number of remaining pay periods in the year and adding the year to date taxable income.
    To calculate taxes for a bonus paid out separately from wages, Workday looks for the most recent, completed payroll result with a pay period prior to the current payroll result to determine the periodic taxable wages to use in the annual taxable income calculation.
    Workday uses the
    Annual Taxable Wages for Bonus Calculation
     field on the Provincial Income Tax (PIT) pay component to report on annual taxable income and bonus values, and determine the tax calculation to use on an in progress or completed bonus payment. On the PIT pay component, the field displays a worker's QC- Annual Periodic and YTD Bonus (QC-PIT) wages, excluding any current bonus for Quebec.
    In the
    Health Tax
     section, enter the tax rate for the
    Québec Health Services Fund
     tax or select
    Exempt
    .
    In the
    Quebec Compensation Tax
     section, specify whether the company is exempt from this tax. If your company is a financial institution, select the company business type from the
    Financial Business Type
     prompt.
    In these sections, specify whether the company is exempt from these taxes:
    • Commission des normes, de l'équité, de la santé et de la sécurité du travail
    • Quebec Workforce Skills Development Recognition Fund
    The
    Optional QPP Coverage (RR-2)
     section is applicable if you’re an employer and have filed an RR-2 form with Revenu Québec. Enter the
    Start Date
     and select the
    Enable Coverage
     check box. This selection enables QPP for status Indian workers if you decide to pay the employer QPP as well. When enabled, QPP resolves, enabling you to deduct and remit. Workday recommends you configure this grid in the same way you configure the
    Optional CPP Coverage (CPT124)
     section on the
    Edit Company Federal CAN Tax Reporting
     task.
  4. On the
    Workers Compensation
     tab, complete the fields in the
    Account Information
     and
    Workers Compensation Rates
     sections.
    For Québec, enter the
    Identification Number
     you added to the
    Withholding
     section on the
    Province
     tab. Example: 1245678904RS0001.
  5. On the
    Sales Tax
     tab, select the Workday-owned deductions to use for calculating provincial sales tax.
  6. The
    Other
     tab displays for these provinces:
    Option Description
    Northwest Territories
    Nunavut
    Enter the
    Start Date
     and
    Account Number
     for each company with workers in these territories that require either of these deductions:
    • NT: Province Payroll Tax [CAN]
    • NU: Province Payroll Tax [CAN]
    Add these pay component groups to the
    Groups
     section in the
    Non-Effective Dated
     tab of the employees' pay components:
    • Northwest Territories Payroll Tax Taxable [CAN]
    • Nunavut Payroll Tax Taxable [CAN]
  7. On the
    Year End
     tab (Québec only), configure year-end options:
    Option Description
    Transmitter Number
    Configure a transmitter number, as provided by Revenu Québec, for each
    Identification Number
     for the same dates. Example: You enter the
    NP123456
     transmitter number for the
    1245678904RS0001
     identification number.
    RL-1 Slip Numbers (Not required after 2019-12-31)
    As of 2020, Workday maintains the RL-1 slip and transmission slip numbers so that you don't have to enter them.
    You can access the
    View Quebec Year End Slip Numbers
     report to view the starting numbers that Revenu Québec assigned Workday to use on the year-end forms.
    RL-2 Slip Numbers (Not required after 2019-12-31)
    As of 2020, Workday maintains the RL-2 Slip and Transmission Slip numbers so that you don't have to enter them.
    You can access the
    View Quebec Year End Slip Numbers
     report to view the starting numbers that Revenu Québec assigned Workday to use on the year-end forms.
    Reference Number
    Enter the
    Identification Number
     you configured for your company. Example: 1245678904RS0001.
    (Optional) You can display the employee ID number on the RL-1 and RL-2 slips. Select the
    Default Employee ID Number
     check box.
    Employer Name
    Enter an
    Employer Name Override
     if the employer name populating the RL-1or RL-2 slip is different from the company organization name.
    Enter the required contact name for the RL-1 and RL-2 forms for integrations with Revenu Québec.
    Employer Address
    You can select
    Use Primary Company Address
     or a
    Use Location Address
    . When you select
    Use Location Address
    , also select the
    Location
    .
Access these reports to review company province and territory tax data:
Report
Description
Provincial Employer Payroll and Health Tax Summary
This report provides the health tax calculation based on tax type, payment month, and account number for a company. You can run the report for a company or multiple companies.
Provincial Employer Payroll and Health Tax (Actual) - Summary
This report provides tax amounts and subject wages reported and totaled by Account Number, payment month, and tax type for totaling. You can run the report for a company or multiple companies.
Provincial Employer Payroll and Health Details
This report provides taxable amounts by employee. To view tax amounts after subject wages:
  1. Access the
    Edit Company Province CAN Tax Reporting
     task for Ontario, Manitoba, or Newfoundland and Labrador.
  2. Select the
    Calculate Tax
     check box on payroll tax or health tax amounts.
View Payroll Tax/Allowance Data
Workday-maintained tax rates.
Enter tax elections for employees.