Preliminary year-end balancing reports

The report shows we are missing or have an invalid pension registration number. Verify and correct any errors shown on the report. This report will still produce even if there are no errors or warnings

This report is used to verify information on file at Dayforce:

• Company name and address - prints on T4’s (should be legal address not P.O. Box)
• Business numbers - Verify the EI type that is attached to each BN – same as PD7A
• Account setups - Powerpay customers do not have an option to receive tax forms on CD, they receive a pdf file

This report should be reviewed to validate accuracy.

The Matrix Report includes two sections for each Earning.

1. Fed/Prov taxes and Provincial Health Care Levy
2. Quebec Only Calculation and Tax Forms

This report shows the allocation of earnings, deductions and taxable benefits to correct tax forms and boxes of forms.

Verify the following:

• Each code has correct tax, EI, CPP, QPP, QPIP implications
• Each code is being directed to the correct tax form box

Instructions are provided on the report information.

The Matrix Report includes two sections for each Deduction/Benefit.

1. Fed/Prov taxes and Provincial Health Care Levy
2. Quebec Only Calculation and Tax Forms

This report shows the allocation of earnings, deductions and taxable benefits to correct tax forms and boxes of forms.

Verify the following:

• Each code has correct tax, EI, CPP, QPP, QPIP implications
• Each code is being directed to the correct tax form box
• Pension Number is correct as 7 numeric digits

Instructions are provided on the report information.

These reports list On Leave and Terminated employees included on the year-end reports.

Legend for TPU 000 or TPUK 0000

Tax Codes (T):

0 = the employee is subject to income tax deductions

M = the employee is exempt from Provincial, Quebec and Federal Tax

X = the employee is exempt from Federal tax only

CPP Codes (P):

0 = the employee is subject to CPP/QPP

X = the employee is exempt from CPP/QPP

EI Codes (U):

0 = the employee is subject to EI deductions. The employer rate for EI is at a reduced rate.

P = the employee is subject to EI deductions. The employer rate for EI is 1.4.

X = the employee is exempt from EI deductions

N = Combination of option X and P. The employee is exempt from EI and their earnings, benefits and other statutory deductions are reported to the full EI rate Business number

QPIP Codes (K):

0 = the employee is subject to QPIP

X = the employee is exempt from QPIP

This report is a snapshot of what will populate on employee’s T4. It is sorted by Business Number. It displays an ‘S’ for employees with Self Service between province and status.

It shows amounts in individual boxes and the total gross pay.

It shows if employees are subject to Tax, CPP/QPP, QPIP, or EI.

This report totals the amounts showing on employee’s tax forms for a specific business number.

It shows amounts in individual boxes and the total gross pay.

It shows if employees are subject to Tax, CPP/QPP, QPIP, or EI.

Box A - Employment Income = Gross pay + (Box L - Other Benefits) + (Box J - Contribution paid by employer under a private health services plan)

Use this report to fill out RL-1 Summary. Government supplied RL-1 Summary MUST be sent to Revenu Quebec even if Dayforce has sent your RL-1 information electronically.

* This report is only provided with the preliminary balancing report.

This report is produced to assist you in determining those employees who may have been under deducted for CPP/QPP over the course of the year.

With this information, you can make any necessary adjustments to those employees ensuring the T4 and RL-1 forms that are issued will be correct, reducing the CRA/Revenu Quebec discrepancy reports.

How can this happen?

• Birth dates - If an employee turned 18 or 70* in the year, a CPP/QPP deficiency will display on your reports. If the birth date is correct and the exemption status was updated at the correct time, an adjustment is not required.
• The Applicable Period of Time on the timesheet was incorrectly selected.
• Bonus Run
  • CPP/QPP was not deducted or was incorrectly calculated
  • No time taken - Bonus Tax Method was not selected for Applicable Period of Time on the timesheet.
• Vacation Payments
  • Vacation pay was paid in advance and the time off was less than a regular pay period. When the employee is paid for the remainder of the same pay period's earnings, the exemption was applied again causing the individual’s recorded weeks in the year to exceed 52.
• Manual payment entries during the year - CPP YTD maximum was not met:
  • CPP/QPP exemption applied in error
  • CPP/QPP calculated amount was incorrect
• Second payments - issued on the same pay period as regular cheque - pay period exemption applied twice.
• Year-end adjustments to gross pay or taxable benefits did not have a corresponding adjustment for CPP/QPP.
• CPP/QPP was refunded due to exempt status not being put in place on time. Pensionable earnings were not adjusted.
• Employee made exempt or subject to CPP in error (timing issues associated with the completion of a CPT30 election)
• Incorrect code set up (Earnings or Taxable Benefits)

* Quebec employees receiving pensionable earnings are subject to QPP contributions even if they are over 70.

Note: Employees who are exempt from CPP will appear on the deficiency report. No action is required.

How can this happen?

• Employee may have been paid additional earnings and EI was not deducted
• Manual payments may not have had EI calculated correctly
• Employee was exempt from EI
• Year end adjustments did not have a corresponding adjustment for EI

* Only produces with Preliminary Balancing Report.