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Administrator Guide
Last Updated: 2023-11-03
Set Up Company Federal Taxes (CAN)

Set Up Company Federal Taxes (CAN)

  • In Workday, record the business number (federal tax ID).
  • If applicable, record the non-resident tax account number of the company in Workday.
  • Security:
    Set Up: Payroll - Company Specific (Taxes) - CAN
     domain in the CAN Payroll functional area.
Enter company-specific data for calculating and reporting federal payroll taxes. Workday provides and maintains federal tax data for payroll tax processing.
  1. Access the
    Edit Company Federal CAN Tax Reporting
     task for the company.
  2. Access the
    Federal
     tab.
  3. In the
    Reference Number Criteria Assignment
     section, define criteria for assigning payroll account numbers to workers.
    Option Description
    Reference Number
    The last 4 digits of the payroll account number assigned to a worker. This number determines the rate Workday uses to calculate their employment insurance. Employees subject to different reduced employment insurance rates require separate reference numbers. Workday recommends creating a default reference for employees subject to the premium rate.
    Default
    The reference number for workers who don't meet any predefined criteria. Typically, you assign this reference number to employees who aren't eligible for a reduced employment insurance rate.
    Worker Criteria Assignment
    Criteria that workers must meet for Workday to assign the reference number.
    • Select 1 or more eligibility that defines the criteria.
    • Workers must meet all criteria defined in the same row.
    • Don't enter criteria for the default reference number.
    During the pay calculation process, workers must meet the criteria on the end date of the period you’re processing.
    Payroll Account Description
    Enter an explanation for a worker having multiple year-end forms for the same company, tax year, and province. Example: 1 for part time and 1 for full time. This explanation displays on the worker's Employee Self Service.
  4. In the
    EI Reduced Rates
     section, identify the reference numbers for employees subject to a reduced employment insurance rate and enter the
    Reduced Rate
    .
    The reduced rate applies to all workers across Canada, including workers in Quebec.
  5. In the
    Bonus Tax Method
     section, select the
    Regular Bonus Tax Method
     or the
    YTD Bonus Tax Method
    .
    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 before 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 Federal Income Tax (FIT) 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 FIT pay component, the field displays a worker's annual periodic wages and bonus year-to-date (YTD) wages, excluding any current bonus for FIT.
    Workday defaults to the Regular Bonus Tax method when you don't select an option.
  6. In the
    Optional CPP Coverage (CPT124)
     grid, enter the
    Start Date
     and select the
    Enable Coverage
     check box. This is applicable if you're an employer and have filed a CPT-124 form with CRA. When enabled, CPP resolves, enabling you to deduct and remit.
  7. Access the
    Record of Employment
     tab.
  8. In the
    Default ROE Information
     section, configure ROE information for the payroll reference numbers:
    Option Description
    Issuer Contact Name
    The person responsible for ensuring the accuracy of the information reported in the ROE, typically a payroll partner.
    Reason Contact Name
    The person who can explain the reason for issuing an ROE, typically an HR analyst. The phone number must be in this format to comply with Service Canada guidelines: (000) 000-0000. If the phone number is incorrect for the worker, access the
    Change Contact Information
     report and edit the primary work phone number.
    You can also enter a generic contact as
    Text Input
    . Example: You input Payroll Department so that a team, instead of an individual worker, handles calls from Service Canada.
    Reason Contact Phone Number
    The phone number must be in this format to comply with Service Canada guidelines: (000) 000-0000. To ensure that the phone number formatting matches Service Canada guidelines, add the appropriate countries in the
    Allowed Phone Validations
     prompt on the
    Edit Tenant Setup – Global
     task.
    Default Payment Dates
    (Optional) Enables Workday to populate the ROE
    Payment Start Date
     and
    Payment End Date
    . On the ROE, these are:
    • Block 17 - Separation payments
    • Block 19 - Paid sick/maternity/parental/compassionate care/Family Caregiver leave or group wage loss indemnity payment
    Organization Number
    (Optional) Enables Workday to populate the ROE with the organization identifying number that you created on the Service Canada ROE website.
    Folder CD
    (Optional) Enables Workday to populate the ROE with the folder for submitting your ROE outbound file that you created on the Service Canada ROE website.
    When you create ROE data, you can see the results of these settings on the
    View Payroll ROE Data
     report.
  9. (Optional) In the
    Override ROE Contact Information
     section, override the ROE contact information by location for a company reference number:
    Option Description
    Reference Number
    Configure a payroll reference number on the
    Default ROE Information
     grid in order to select it here.
    Location
    Select the location you'd like to override ROE contact information for. You can select from active locations that have
    Business Site
     as a location usage.
    Preferred Language
    Select the language you'd like Service Canada to use when contacting the reason contact for the location.
    Workday uses the default ROE preferred language on the ROE when the location you selected is inactive when creating the ROE.
    Example: For Quebec, you select French (Canada).
    Reason Contact Name
    Select a worker or enter custom text input as the overriding ROE reason contact for the location.
    The phone number must be in this format to comply with Service Canada guidelines: (000) 000-0000. If the phone number is missing or incorrect for the worker, access the
    Change Contact Information
     report and edit the primary work phone number.
    Workday uses the default ROE reason contact on the ROE when the:
    • Location you selected is inactive when creating the ROE.
    • Worker assigned as the overriding ROE reason contact is on leave-of-absence or terminated.
    Reason Contact Phone Number
    The phone number must be in this format to comply with Service Canada guidelines: (000) 000-0000.
    To ensure that the phone number formatting matches Service Canada guidelines, add the appropriate countries in the
    Allowed Phone Validations
     prompt on the
    Edit Tenant Setup – Global
     task.
  10. Access the
    Year End
     tab.
  11. In the
    Contact Information - Address
     section, select the address printed on your payroll tax remittance (required for ROEs and T4 reporting).
    For each reference number, specify
    Use Primary Company Address
     or
    Use Location Address
    .
  12. In the
    Year End Tax Form Configuration - T4 / T4A
     section, configure your year-end tax T4 and T4A form data:
    Option Description
    Create T4 with Box 14 Less than $500
    Create T4A with Total Income Less than $500
    Select these check boxes to override Canada Revenue Agency's tax form thresholds for amounts less than 500 CAD.
    Default T4A Employee ID Number
    To include a worker's employee number on the T4A slip, check this to map it.
    To submit year-end tax filings using the CRA T4A integration, enable for each company. Workday will then report the Employee ID in Box 014 on the T4A form.
    Employer Name Override
    If the employer name and the legal company name are different, enter the employer name. Add a row for each payroll
    Reference Number
    .
  13. In the
    Year End Tax Form Configuration - NR4
     section, configure your year-end tax NR4 form data:
    Option Description
    Non-Resident Account Number
    The
    Non-Resident Tax Account
     number you configured in the
    Edit Company Tax Details
     task.
    Default NR4 Employee ID Number
    Enable and Workday will include the Employee ID in the Payer or agent identification number box on the NR4 form.
    Use Primary Company Address / Use Location Address
    For each reference number, specify whether you want to use the primary company address or the company location address.
    Location
    Workday will use the address of the location you select when you select
    Use Location Address
    .
  • Enter provincial tax reporting elections for each company.
  • To view a summary of the company federal and provincial tax elections, including a history of elections that have ended, access the
    Company CAN Tax Reporting
     report.