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Administrator Guide
Last Updated: 2023-06-23
Set Up the Indian Act Exemption for Employment Income (CAN)

Set Up the Indian Act Exemption for Employment Income (CAN)

Security: These domains in the CAN Payroll functional area:
  • Set Up: Payroll - Company Specific (Taxes) - CAN
  • Set Up: Payroll (Year End) - CAN
  • Worker Data: Payroll (Company Specific) - CAN
You can configure Workday to exempt Indian status workers from income tax when they perform employment duties on a reserve.
When configured, Workday calculates and reports on these taxes accordingly:
  • Federal Income Tax (FIT).
  • Province Income Tax (PIT).
  • QC-Province Income Tax (QC-PIT).
  1. Access the
    Add Worker CAN Tax Elections
     task.
    1. Add a row to the
      TD1-IN Exemption Percent
       grid.
      Workday populates the
      Percent Exempt
       field with 100. Add a new row and select
      Inactive
       when a worker changes job location and no longer works on a reserve.
  2. (Optional) Access the
    Edit Company Federal CAN Tax Reporting
     task.
    1. Locate the
      Optional CPP Coverage (CPT124)
       grid.
    2. Add a row, enter the
      Start Date
      , and select the
      Enable Coverage
       check box.
  3. (Optional) Access the
    Edit Company Province CAN Tax Reporting
     task.
    1. Locate the
      Optional QPP Coverage (RR-2)
       grid.
    2. Add a row, enter the
      Start Date
      , and select the
      Enable Coverage
       check box.
  4. Add the
    Federal Income Tax (FIT) [CAN] - Indian Exempt Employment Income
     pay component related calculation (PCRC) to Box 71 on the T4 Form.
    1. Access the
      View Canada Year End Form Box Configuration
       task.
    2. Select
      Year End Forms by Country
       from the
      Payroll Year End Form Type
       field.
    3. Select the appropriate year.
    4. Select
      T4
       from the
      Canada Year End Forms
       prompt.
    5. Locate the
      Other Information
       row and select the
      Maintain T4 Box Configuration
       button.
    6. Add a row to the
      Maintain Canada Year End Form Box Configuration
       grid and enter these values:
      Option
      Description
      Effective Date
      Select the appropriate year.
      Calculation
      Select the
      Federal Income Tax (FIT) [CAN] - Indian Exempt Employment Income
       pay component related calculation.
      Detail Reporting Code
      71 - Indian employee
  5. Add the
    Province Income Tax (QC-PIT) [CAN] - Indian Exempt Employment Income
     PCRC to Box R on the RL-1 form.
    1. Access the
      View Canada Year End Form Box Configuration
       task.
    2. Select
      Year End Forms by Country
       from the
      Payroll Year End Form Type
       field.
    3. Select the appropriate year.
    4. Select
      RL-1
       from the
      Canada Year End Forms
       prompt.
    5. Locate the
      R - Income paid to an Indian and situated on a reserve or premises
       row and select
      Maintain RL-1 Box Configuration
      .
    6. Add a row to the
      Maintain Canada Year End Form Box Configuration
       grid and enter these values:
      Option
      Description
      Effective Date
      Select the appropriate year.
      Calculation
      Select the
      Province Income Tax (QC-PIT) [CAN] - Indian Exempt Employment Income
       pay component related calculation.