Set a permanent tax percentage

Tip: You must open a pay period to use this feature / functionality. Click the Pay Period menu and click the Enter button for the pay period you want to work with. The Payroll and Process menus become available.

For an employee that has the Permanent Tax % option selected in the Tax Status field on the Employee Profile page.Closed From the Payroll menu, select Hire/Profile > Employee Profile., you must enter the percentage amount on the Statutory Deductions page.Closed From the Payroll menu, select Regular Payment > Statutory Deductions.

Note: This option disables the automated movement to another tax bracket if earnings in any single payroll fall into a higher or lower tax bracket (annualization of earnings determines the federal tax percentage level).

This option is not used often, but it may be useful if earnings are uneven from payroll to payroll. However, it is also possible to indicate, for commissioned employees, estimates of annual earnings and expenses. This also provides an annualization of the tax bracket.

Note: When using this option, it is a best practice to have the employee fill out the CRA TD1X form. Keep this form on file for the employee.

Tasks

Set up a permanent tax percentage for an employee

  1. Click the Pay Period menu and click the Enter button for the pay period you want to work with.
  2. Open the Statutory Deductions page.Closed From the Payroll menu, select Regular Payment > Statutory Deductions.
  3. Select the employee from the Employee List.

  4. Scroll down to the Tax Options - Permanent Values section. Under Federal Tax select the Permanent tax percentage to be taken option, and then enter a percentage in the corresponding box.

  5. In the Tax Options - Permanent Values section, under Provincial Tax select the Permanent tax percentage to be taken option, and then enter a percentage in the corresponding box.

  6. Click Save.