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Administrator Guide
Last Updated: 2023-06-23
Add Worker Province Tax Elections (CAN)

Add Worker Province Tax Elections (CAN)

Security:
Worker Data: Payroll (Company Specific) - CAN
 domain in the CAN Payroll functional area.
Enter provincial tax elections for an employee when the worker submits a TD1 or TD1X instead of using self-service. If a worker works in more than 1 company, enter a separate set of tax elections for each company.
Only 1 set of elections can be in effect at a time. When calculating payroll for an employee, Workday uses the tax elections in effect on the payment date.
  1. Access the
    Add Worker CAN Tax Elections
    .
    When there are existing worker tax elections, you can view them by selecting:
    • Current Elections
    • All Elections
  2. Access the
    Province
     tab.
    As you complete this tab, consider:
    TD1
    Enter TD1 information provided by the employee.
    Field
    Description
    Basic Personal Amount
    The default amount based on the
    Effective Date
    .
    Total Claim Amount
    Workday sets the
    Total Claim Amount
     to zero if you select
    More than One Employer or Payer at the Same Time
    .
    TD1X
    Quebec is the only province that requires provincial commissions and expenses election in addition to the federal election.
    Field
    Description
    Inactive
    Workers can inactivate elections at any time during the year.
    Estimated Annual Net Commission Income
    Workday-supplied information when you enter the
    Effective Date
    , estimated
    Annual Wages
    ,
    Gross Commissions
    , and
    Expenses Related to Commissions
    .
    Percentage of Commissions
    Estimated Annual Net Commission Income / Gross Commissions
    Used to determine the percentage of periodic commission to include in the Quebec regular income tax calculation.
    Example: The worker's
    Estimated Annual Net Commission Income
     can be 80% of their
    Gross Commissions
    .
    Workday uses the commission tax calculation for Quebec when you provide this information and configure earnings for these pay component groups:
    • Quebec Taxable (Withhold Taxes) [CAN]
    • Quebec Commission Earnings [CAN]
    You can use these web services to enter and retrieve workers' commission elections for Quebec:
    • Put Payroll Payee PTD1X
    • Get Payroll Payee PTD1X
    Province Annual Values for Payments in the Effective Year
    Province annual values will only impact the tax calculation for payments within the effective year. If the tax election is valid for more than 1 year, enter a separate row and effective date per year.
    Field
    Description
    Annual Deductions
    (Quebec only)
    The authorized amount for costs not deducted from salary, such as childcare, alimony, or maintenance payments.
    Annual Tax Credits
    The authorized amount for costs such as medical expenses and charitable donations.
    Labour-Sponsored Funds
     (Not applicable to Quebec)
    View only. Total amount the worker paid to purchase approved shares of capital stock in a labour-sponsored venture capital corporation.
    View only. Add the
    Labour-Sponsored Funds (LCF/LCP)
     pay component group to your deductions to calculate the applicable provincial tax credit. This credit is based on the amount withheld for the pay period, while respecting the annual credit limit.
    Estimated Annual Lump Sum Wages
    Field
    Description
    Effective Date
    Automatically populates to the current date.
    Inactive
    Select if the Estimated Lump Sum isn't applicable.
    Province
    Quebec only.
    Estimated Annual Lump Sum
    Workday bases the taxes on the expected lump sum wages for the calendar year.
    Quebec Tax Elections
    These tax election grids only display for Quebec province. Specify if the employee is exempt from any of these taxes:
    • Quebec Parental Insurance Plan
    • Quebec Compensation Tax
    • Quebec Health Services Fund
    • Workforce Skills Development and Recognition Fund
    • Commission des norms, de l'équité, de la santé et de la sécurité du travail (CNESST)
    Province Workers Compensation
    To exempt an employee from workers compensation, select
    Exempt
    . Employees can't select the exempt status through ESS.
    Province (PIT)
    Specify if the employee is exempt from PIT.
    Year End RL-2 Reporting
    Select the
    Spouse Receiving Payments
     check box, if applicable. When selected, Workday populates the worker's Social Insurance Number (SIN) in the spouse box on the RL-2 form.
  3. The
    Other
     tab displays if there are workers in the Northwest Territories or Nunavut. For employees not required to pay the tax, if you set up Province Payroll Tax and at least 1 worker location:
    • Enter an
      Effective Date
      .
    • Select the
      Exempt
       check box for the
      Province Payroll Tax Election
      .
You can view a worker's tax elections with these reports:
  • Worker CAN Tax Elections
  • Payee T1 Withholding Election
To correct a worker's tax elections, access the
Worker CAN Tax Elections
 report. In the first column, select
Worker Tax Election
Edit
 from the related actions menu.
If a worker changes companies, enter the worker's tax elections for the new company.