Year End Central

Employer-offered dental benefits - For tax slips filed for calendar year 2023 and after, it is mandatory to enter a code from 1 to 5 in new T4 Box 45 and T4A Box 015 for individuals with an amount reported to Box 016 (Pension or superannuation). This indicates whether the employee or their family members were eligible on December 31 of that year to access any dental care insurance that you offered.

Health Canada has indicated that the code reported will likely be the same across all employees or groups of employees.

Employers should, however, consider unique employee populations (terminated, on leave, part-time/full-time and retirees) that may be offered a different level of dental coverage.

Codes:

• 1 if there is NO dental coverage offered

• 2 if the dental coverage is limited to employees

• 3 if the dental coverage is offered to employees, spouses and children*

• 4 if the dental coverage is limited to employees and their spouses

• 5 if the dental coverage is limited to employees and children

* Single coverage? It is not relevant what option an employee actually chooses as their dental benefit. If full family coverage is available (should the employee get married or have a child), code 3 is appropriate.

Video

This video is designed to assist Powerpay customers with understanding the T4/T4A implications of the new Canadian Dental Care Plan (CDCP) and how to complete the new T4/T4A Dental Benefits page in Powerpay starting for the 2023 Tax Year.

Canadian Dental Care Plan Webinar

For more information see:

• Canadian Dental Care Plan Webinar (PDF)

• T4/T4A Dental Codes, Canadian Dental Care Plan (CDCP) - FAQ

• Gifts and awards - Historically, gift cards have been classified as near-cash and been treated as taxable federally. A new category of non-cash non-taxable gift cards was recognized in 2022 and that was expanded to apply to gift cards given as long service awards starting with the 2023 tax year.

• Low-interest or interest-free employee loans – Effective for the 2023 tax year, employee loan interest benefits are not taxable if 1) the total amount of all loans received is $10,000 or less per calendar year 2) the term of the loan(s) is 60 days or less and 3) the loan is not received because of shareholdings.

Enhanced CPP/QPP - changed the tax calculation to give enhanced CPP/QPP contributions a tax deduction (reduction in taxable income) rather than a tax credit (reduction in tax)

• New Brunswick - modified the personal income tax thresholds and reduced tax rates.

• Prince Edward Island - increased the basic personal amount from 11,250 to 12,000.

• Manitoba Health and Education Levy (MB HE Levy) - changed a threshold from 1.75M to 2.0M, and from 3.5M to 4.0M

• Quebec’s Health Services Fund (QHSF) Threshold - increased the upper total payroll threshold for the Health Services Fund (beyond which the rate is 4.26%) (from $7.0M to $7.2M) based on indexation

• Newfoundland Health and Post-Secondary Education Tax Threshold - retroactively increased the exemption from $1.3 million to $2 million for 2023

• Manitoba - increased the basic personal amount from $10,855 to $15,000 for 2023 with a prorated amount of $19,145.

• Quebec - announced a number of 1% tax reductions:

  1. Personal withholding rate - personal income tax withholding will be reduced by one percent for taxable income up to $49,275 (to 14% from 15%) and by the same amount for taxable income up to $98,540 (to 19% from 20%).

  2. Lump sum rates - certain single payments $5,000 or less will be subject to decreased withholding (to 14% from 15%) with payments over $5,000 also decreasing (to 19% from 20%).

  3. Bonus or retroactive rate for low income-earners - when annual wages including this payment is less than the Basic Personal Amount, the rate for withholding is decreasing by one percent (to 7% from 8%).

• In July 2023, WSIB announced that Ontario businesses would have a new option within the CRA’s government portal (called My Business Account) to report insurable earnings and make WSIB premium payments.

• British Columbia and Yukon - began recognizing September 30 as a mandatory statutory holiday in 2023. They join federally regulated employees and employees working in Prince Edward Island, Northwest Territories, and Nunavut.

• Province of Employment - CRA has updated their Province of Employment (POE) policy effective January 1, 2024. There is a decision tree on their website that allows POE assignment to a permanent establishment within a virtual employee’s province of attachment rather than the province from which they are paid.

• Electronic Filing Threshold – CRA has reduced the threshold for filing tax forms electronically from 50 to 5 for 26 different form types including T4, T4A, N4R, and T4A-NR4 starting in 2024.

Second Contributions of CPP/QPP - Beginning in 2024, pensionable earnings from the YMPE to the new second earnings ceiling, called the YAMPE (Year’s Additional Maximum Pensionable Earnings) are subject to additional CPP and QPP contributions of 4% each for employees and employers.

These second contribution amounts will be reported to 2024 tax forms as follows: T4 Box 16A (CPP), T4 Box 17A (QPP) and RL-1 Box B.B (QPP) and B-2 (CPP).

2024 Enhanced CPP/QPP Phase II and QPP Changes (Webinar, PDF)

• Quebec Pension Plan, January 2024 - modified QPP administration specific to older workers. Those:

  • aged 65 and over have a new option to stop paying QPP contributions if they are receiving a QPP or CPP retirement pension. The election form was not available at the time of publication.

  • turning 73 in 2024 are no longer obligated to contribute to the QPP. QPP deductions are to stop with the first pay of January 2024 for employees with a 1951 birthyear.

• Fondaction / FTQ eligibility - To qualify for the 30% federal and provincial tax credit for labour-sponsored funds in 2024, an employee’s taxable income in 2022 (Line 299 of the Quebec income tax return) must have been $112,655 or less. Prior to the first payroll of each year, employees are responsible for asking their employer to stop applying the 30% tax credit, if that’s necessary based on their taxable income from 2 years earlier.

• Prince Edward Island - Administratively, an increase to the 2023 basic personal amount (from 12,000 to 12,750) was deferred and will be received by individuals as an adjustment on their 2023 personal tax returns. As a consequence, PEI will be increasing the basic personal amount from 12,000 to 13,500 starting January 2024. Also, effective January 2024, personal income tax rates will be reduced on the first 3 income thresholds, there will be 2 new upper-income thresholds and the 10% surtax will stop being applied.

• Manitoba - increased personal income tax upper thresholds from 36,842 to 47,000, from 79,625 to 100,000 and from > 79,625 to > 100,000 effective January 2024.

• Manitoba Health and Education Levy (MB HE Levy) - a threshold change from 2.0M to 2.25M, and from 4.0M to 4.5M was passed in Bill 14. The March 7, 2023 budget also announced rate reductions for 2024 which have not yet been confirmed.

• Quebec’s Health Services Fund (QHSF) Threshold - The upper total payroll threshold for the Health Services Fund (beyond which the rate is 4.26%) is expected to increase in January 2024 (from $7.2M) based on indexation.

1. In Powerpay, go to the Field Selections page. From the Company menu, select Self Service > Field Selections.

2. Change Year-End Form Delivery to View or Edit.

   • View: Employees can view their Tax Form selection

   • Edit: Employees can amend their Tax Form selection

Employees can amend their tax form selection in Self Service if their employer has granted them edit access. If edit access is granted, advise employees to:

1. Go to Profile page. From the Profile & Settings menu, select Profile.

2. In the Work Information section, update the tax form delivery option.

3. Click Save.

Employers can change the employee’s tax form selection in Powerpay.

1. Go to the Employee Profile page. From the Payroll menu, select Hire/Profile > Employee Profile.

2. Select the employee from the list.

3. In the Additional Information section, update the tax form delivery option.

4. Click Save.

1. Go to the User Accounts page. From the Reports menu, select Self Service Reports > User Accounts.

2. View the list of employees with Self Service accounts and the settings in place for each employee.

The year-end balancing report identifies if an employee will receive online tax forms. On the Employee Totals report, an ‘S’ displays between the province code and employee status.

1. Go to the Employee Profile page. From the Payroll menu, select Hire/Profile > Employee Profile.

2. Select the employee from the list.

3. View the tax form delivery option in the Additional Information section.

1. Dial 1-800-667-7867.
2. Select your language of choice.
3. Select Account Management.
4. Identify yourself with your Branch, Payroll ID and PIN (this is the same access information used when calling in for payroll totals).
5. Follow the voice prompts for Tax Form Processing.

Payroll Tax in the Northwest Territories (NT) and Nunavut (NU) is levied as a 2% deduction from the gross remuneration of employees. These payroll taxes apply to all employees who work, perform duties, or provide services in NT or NU, regardless of the province or territory of residence of the employee or employer or the employee's age. There is an exemption available to employees who normally work outside the territory and earn less than $5,000.

For additional information, see the websites for Northwest Territories Department of Finance and Nunavut Department of Finance.

Although employees working in these jurisdictions have both Federal and Territorial Tax deducted from their income, NT/NU’s Payroll Taxes deducted are not remitted to CRA as part of their Territorial Tax. Payroll Taxes are directed to the applicable territorial Finance department. For that reason, T4 slips do not report these 2% Payroll Tax deductions. Employees can validate the Payroll Tax deductions made by their employers by reviewing their pay statements.

Pay statement legend:

• Federal and Territorial Tax is combined and called FED TAX

• NT/NU’s Payroll Tax is called NWT TAX or NNVT TAX

No. It is your responsibility to submit the Northwest Territories/Nunavut Annual Payroll Tax Return by February 29, 2024.

Ontario employers subject to EHT must file an annual return each calendar year. The annual return for 2023 is due on or before March 15, 2024. The purpose of the annual return is to reconcile the annual tax due with the instalments paid. For monthly remitters, the instalments paid are calculated on the previous month's payroll and are remitted on the 15th of the following month. Employers with annual “Total Ontario Gross Remuneration” greater than $1,200,000 are to remit EHT monthly.

An Annual EHT return must be filed by:

• All employers who received their EHT Annual Return from the Ministry of Finance
• Eligible employers whose “Total Ontario Gross Remuneration” is greater than their available exemption for 2023
• Eligible employers with annual “Total Ontario Gross Remuneration” that does not exceed their available exemption amount if the employer:
  • was a member of an associated group on December 31, 2023; or
  • made EHT installment payments in 2023
• New eligible employers whose annual “Total Ontario Gross Remuneration” is greater than their allowable prorated exemption amount

If Dayforce is remitting on your behalf, the balancing of payments and the filing of the annual return is still your responsibility. Refer to the General Client Information section of your Year-End Balancing Reports for information to assist you in completing the Annual Ontario EHT Return.

Debit or credit balance

If your completed EHT return reflects a balance owing, you must submit a payment to the Ministry of Finance with your Annual EHT return.

If your completed EHT return reflects a credit balance, and the credit is deemed to be valid by the Ministry of Finance, you will receive a refund directly from the Ministry of Finance.

• If you have selected “Credit to Next Year” on your EHT return, the credit will remain on your account, indefinitely, until you contact the Ministry to request a refund.

  Note: The Ministry of Finance will not validate EHT credits directly with payroll providers. Since Dayforce is unable to validate a credit, we cannot reduce future EHT remittances for credits due. You are responsible to request a refund from the Ministry of Finance.

In response to COVID-19, in 2020 the annual exemption was increased from $490,000 to $1 million. The $1 million exemption was maintained into 2021 and is set to continue in place until 2028. There is no exemption for eligible employers and groups of associated employers with annual Ontario payroll over $5 million (unless the employer is a registered charity).

Note: If your business opened part way through this year, your exemption amount is prorated. For more information go to: http://www.fin.gov.on.ca/en/guides/eht/

Employers whose “Total Ontario Gross Remuneration” for the year is less than $1,200,000 are not required to pay in monthly installments. They can ask to be set up to remit tax only once a year.

For employers making monthly installments, the amount owing for a year is based on the payroll from January 1 to December 31.

Action Required: If your payroll includes employees in the province of Ontario, SUBMIT your Annual EHT Return by March 15, 2024 (deadline).

No. It is your responsibility to submit the Ontario Annual EHT Return by March 15 , 2024.

British Columbia Employer Health Tax (BC EHT) is a health tax that was introduced in 2019. It is payable by employers on BC remuneration.

BC EHT is payable when an employer’s total BC remuneration (including amounts paid by Associated Employers) is greater than the $500,000 exemption amount.

Charities are subject to unique requirements.

Tax Rates for Employers with B.C. payroll:

• $500,000 or less: no EHT
• Between $500,000.01 and $1,500,000: 2.925% x (Payroll - $500,000)
• Greater than $1,500,000: 1.95% on total payroll

If you have employees in British Columbia, you are responsible for completing and filing your BC EHT annual return by April 2, 2024 and for making all tax payments. Dayforce does not remit BC EHT on behalf of employers.

Special Considerations

Employers can review their Earnings and Deduction/Benefit Matrix and Year End reports to verify that the taxable T4/T4A income of BC employees has been included. The BC Ministry of Finance web site lists included and excluded remuneration.

No. It is your responsibility to submit the British Columbia EHT Annual Return by April 2, 2024.

If you have employees in Manitoba and you pay Manitoba Health and Post-Secondary Education Tax, you must file a HE Levy Annual Report stating those employees’ year-to-date Manitoba gross remuneration. A copy of your 2023 T4-T4A Summary(s) must be included with the Report and submitted by April 1, 2024 to:

Manitoba Finance

Taxation Division

101 - 401 York Avenue

Winnipeg, Manitoba

R3C 0P8

Telephone: (204) 945-5603

Manitoba Toll Free: 1-800-782-0318

E-mail: mbtax@gov.mb.ca

While the Taxation Division mails the HE Levy Annual Report to registered employers prior to the due date, it is the employer’s responsibility to file the annual report and remit the tax by the filing deadline even if the report has not been received.

Note: Dayforce transmits to CRA the information required in the T4 Summary, but if you require a copy you can complete the fillable T4/T4A Summary located at https://www.canada.ca/en/revenue-agency/services/forms-publications/help-forms-publications/about-forms-publications.html or call 1-800-959-5525. CRA no longer sends paper summaries to employers via the mail.

The 2023 rates and thresholds were:

Action Required: If your payroll includes employees in the province of Manitoba, SUBMIT your T4 Summary (for Health & Education Tax) for April 1, 2024 (deadline).

The 2024 thresholds will be:

No. It is your responsibility to submit the Manitoba HE Levy Annual Report byApril 1 , 2024.

It is recommended that all Newfoundland and Labrador employers file an Annual Declaration Return form that includes copies of your T4 and/or T4A Summaries for the relevant year. The Department of Finance may levy penalties for payments or returns that are filed late or when full payment is not made by the due date.

For 2023, employers whose cumulative payroll did not exceed the $2 million exemption threshold are not required to pay this 2% payroll tax.

Employers who are associated with other corporations or who are in partnership with other employers are required to file an allocation agreement for the purposes of allocating the exemption threshold.

Action Required: If your payroll includes employees in the province of Newfoundland and Labrador*, submit your Annual Declaration by March 31, 2024 if applicable.

No. It is your responsibility to submit the Newfoundland and Labrador Annual HAPSET Declaration Return by March 31, 2024, if applicable.

Employers paying employees working in the province of Quebec must pay CSST insurance premiums to Revenu Quebec based on their remittance frequency. These payments are to be reconciled annually by employers against the actual insurable wages paid to employees.

If you are an employer paying Quebec employees, you must file CSST payments with your Revenu Quebec source deductions and employer contributions (weekly, twice monthly, monthly or quarterly as per your existing remitting schedule). Even if you are not subject to source deductions or employer contributions, you still need to direct your CSST payments to Revenu Quebec.

Dayforce can remit your CSST premium payments on the same remittance frequency in place today for your source deductions and employer contributions to Revenu Quebec.

As a reminder, it remains the employer’s responsibility to balance and submit an annual Statement of Wages to the CNESST.

For more information visit the CNESST website at https://www.cnesst.gouv.qc.ca/en .

No. It remains the employer’s responsibility to balance and submit an annual Statement of Wages to the CNESST.

Employers must complete and return the annual Statement of Wages before March 15, 2024. If there is a credit or a balance owing an assessment variation may be issued and interest becomes payable.

For more information visit the CNESST website at http://www.csst.qc.ca/en/.

To calculate your Worldwide Wage amount to determine your QHSF rate, add the total salaries and wages paid in the year and the total salaries and wages paid by any associated employer (even if the associated employers carry out their activities outside of Quebec).

As a reminder, in 2023, the upper total payroll threshold for QHSF (beyond which the rate is 4.26%) was $7.0M.

To reconcile your 2023 QHSF, the following rates should be applied to the 2023 wages that are subject to QHSF:

• If your total Worldwide Wages for 2023 are equal to or less than $1 million, your rate will be 1.65%.

• If your total Worldwide Wages for 2023 are greater than $1 million but less than $7.0 million, your rate is based on the following formula:

  W (%) = 1.2290 + (0.4127 x S), where

  W represents the rate and S the quotient obtained by dividing your total Worldwide Wages for 2023 by $1,000,000.

  The rate calculation must be rounded to the second decimal. If the third decimal is equal to or greater than 5, the second decimal must be rounded up to the nearest second decimal.

• If your total Worldwide Wages for 2023 are over $7.2 million, your rate will be 4.26%.

If an employer is eligible for a reduced rate because they are in the primary or manufacturing sectors, the contribution rate is determined as follows:

• If total Worldwide Wages for 2023 are equal to or less than $1 million, the rate is 1.25%.

• If total Worldwide Wages for 2023 are greater than $1 million but less than $7.0 million, the rate is based on the following formula:

  W (%) = 0.7645 + (0.4855 x S), where

  W represents the rate and S the quotient obtained by dividing the total payroll for 2023 by $1,000,000.

• If your total Worldwide Wages for 2023 are over $7.2 million, your rate is 4.26%.

Note: Your actual contribution rate is determined by using your TOTAL Worldwide Wages amount for 2023. The Health Services Fund contributions reconciliation at year-end may indicate that remuneration, subject to QHSF, is more than was originally estimated for the purpose of establishing the correct contribution rate. Employers are then expected to modify their QHSF rate, and make any required adjustments, before the last remittance of the year. Employers who have under-remitted should not delay addressing this until after they file the Summary of Source Deductions and Employer Contributions – RLZ-1.S-V since interest will be added to the amount payable and a penalty may be imposed. For further details, see the back of the RL-1 Summary.

The upper total payroll threshold for QHSF is indexed so that it will increase from $7.2 million in 2023.

No. Even though Dayforce files your RL-1 information electronically, the government supplied RL-1 Summary (RLZ-1.S-V) must be completed by you and sent to the address shown on the form. The Quebec provincial government does not supply Dayforce with RL-1 Summaries.

Your failure to file the RL-1 Summary may result in penalties.

For the purpose of completing the RL-1 Summary, Dayforce’s Revenu Quebec transmitter number (tax filing number) is NP000006. This number is for Dayforce customers filing purposes only and should NOT be used or distributed to anyone other than Revenu Quebec. The following video is provided as information:

• How to complete the Summary based on information Dayforce has available (6:15)

  

• Relevé 1 Summary – Fillable form

• Guide to filling in the Relevé 1 summary

Deadline for submitting

The RL-1 Summary – Summary of Source Deductions and the Employer Contributions must be submitted for a taxation year by the last day of February the following year.

Purpose of the RL-1 Summary

To report amounts paid to Revenu Quebec.

Why does Dayforce not file the RL – Summary on your behalf?

There are amounts required on the summary that are not created by Dayforce payroll processing such as the contribution related to Labour Standards and the contribution to the Workforce Skills Development and Recognition Fund (WSDRF).

How to complete the RL-1 Summary

Note: When completing the summary, click on blue hyperlinks on the RL-1 summary form for more information.

1. Refer to your Year End reports – Locate report called Summary of Source Deductions and Employer Contributions. This report can be used to fill in some of the information on the RL-1 Summary.

   

2. Refer to your Standard Reports Package - Locate the Government Remittance Summary.

   This report displays remittances that Dayforce has made on your behalf. It is cumulative and shows all remittances that have been made for the current year. The last remittance for the year is made in January, thus the full report for the year will not be available until after your final remittance in January has processed (this will differ depending on your remittance frequency). By pay period 2 or 3 of the new year, you will see the full report.

   This report will be used to complete Section 1 of the RL-1 Summary as well as Section 2, Line 26 and Line 38.

   

   The mandatory fields that must be completed before you can proceed to enter your amounts include:

   • Name of employer

   • Mailing Address

   • Postal Code

   • Identification Number:

   • File: RS

   • Transmitter Number: NP000006

3. Statement of Duties (by Month) - Enter the Total remittances by remittance period.

   The information can be found in the Standard Reports Package /Government Remittance Summary. Include the amounts for Québec income tax, QPP contributions, QPIP premiums and contributions to the health services fund that you reported each remittance period of the year covered.

   Note: Do not include the periodic CSST payments (relating to occupational health and safety).

4. Line 1 – 11: Enter applicable amounts of QPP, QPIP, and Quebec Tax – as provided on the Summary of Source deductions located in your Year End report (displayed above)

   Note: If you have RL-25 slips, the amount on line 10 needs to include these.

   Once you have entered these values, the totals in lines 3, 9, 12 and 25 will automatically populate.

5. Line 26 – Enter amount paid or payable in the year. The Government Remittance summary has the amounts remitted by Dayforce.

6. Line 27 - Auto populates with the difference of line 25 and line 26.

7. Line 28 - Total Worldwide Wages (for all associated payrolls). This is used for the purpose of determining the QHSF contribution rate that applies in your situation.

   Note: Amount entered on Line 28 automatically generates the rate in Line 36.

8. Line 29 - NAICS code - enter if applicable. For more information click on the hyperlink displayed on the RL 1 Summary form.

9. Line 30 - Total Salary and Wages subject to QHSF for the specific company you are completing the RL 1 Summary for.

   Note: Line 30 will auto populate amounts in Line 34 and 37.

10. Line 36 - Auto populates based on the amount in line 28. This rate can be verified by referring to your Standard Reports Package. The Executive Summary Page displays the QHSF rate.

11. Line 38 - Contribution to the health services fund paid or payable in the year. The amount remitted by Dayforce shows on the Government Remittance Summary.

12. Line 40 - Labour Standards. For remuneration subject to the contribution refer to your Year End Summary for the amount in line 40.

13. Line 50 – WSDRF. Total payroll, if over $2,000,000.

14. Line 52 - Eligible training expenditures. For more information on this please refer to the RL-1 Summary Guide .

15. Line 72 - If you have a balance due on line 72, the RL-1 summary remittance slip will auto populate. For payment options, please refer to the RL-1 Summary Guide.

Since tax forms are filed electronically, CRA has the data and does not require a Summary. The T4 Recap report in your year-end package contains all of the information required on the Summary. For this reason, Dayforce does not print actual summaries. Another reason is that, in the past, customers have inadvertently sent the copy of the Summary provided by Dayforce, resulting in calls from CRA looking for their tax forms which had already been sent by Dayforce. If you require an actual Summary, CRA’s fillable T4 and T4A Summaries can be completed at https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/completing-filing-information-returns.html. CRA no longer sends paper summaries to employers via the mail.

No. You are required to submit a report to the Workers’ Compensation Board (WCB) for each province/territory in which you have employees. Your provincial WCB should communicate to you the rates at which to calculate your premiums owing. The information for completing these reports may be found in the WCB Assessable Earnings Summary within your year-end reports package.

In your Year-End Balancing Report on the T4/T4A Employee Totals page. To access the report, go to the Payroll Reports page. From the Reports menu, select Payroll 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.

This report lists 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.

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.

Tax Returns Exception Report

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

General Client Information Report

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

Ontario EHT Report

Note: If your business opened part way through this year, your exemption amount is prorated. For more information go to: http://www.fin.gov.on.ca/en/guides/eht/

BC EHT Report

If you have employees in British Columbia, you are responsible for completing and filing your BC EHT annual return by April 2, 2024 and for making all tax payments. Dayforce does not remit BC EHT on behalf of employers.

General Tax Information and Earnings and Deduction/Benefit Reference Tables

This report should be reviewed to validate accuracy.

Terminated / On Leave Employees Report

This report lists On Leave and Terminated employees included on the year-end reports.

T4/T4A Employee Totals

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.

T4/T4A Recap Reports

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

A sample T4 Recap report is displayed. A T4A Recap report is included in your package if T4A forms are generated.

WCB Assessable Earnings Report

Relevé 1 and 2 Employee Totals

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

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

Relevé 1, Relevé 2 Recap Report

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.

A sample Relevé 1 Recap report is displayed. A Relevé 2 Recap report is included in your package if Relevé 2 forms are generated.

Summary of Source Deductions and Employer Contributions (QC only)

This information provides you with figures required when you complete the Relevé 1 Summary.

This report produces ONLY with Final YE reports package.

Annual Quebec CNT Levy Report

As a rule, the contribution for the year must be received by the last day of February of the following year. For more information about the contribution and the employers and remuneration not subject to the contribution, see Chapter 7 of the Guide for Employers: Source Deductions and Contributions (TP-1015.G-V).

The Ontario EHT, BC EHT, WCB Assessable Earnings Reports, Summary of Source Deductions and Employer Contributions (QC Only) and the Annual Quebec CNT Levy Report only produce with the tax forms runs.

The following information is required for each employee, including those in a terminated status:

• Current address, including province/territory and postal code, see Canada Post province and territory symbols.
• Social Insurance Number (S.I.N.)

Note: An invalid or missing Social Insurance Number may result in a penalty imposed by CRA.

Changes to these items can be made within Powerpay until the last payroll dated in 2023 is submitted for processing. Instructions for making changes to year-to-date values can be found on the Prior to the First Pay of the New Year page. From the Year End menu, select Year-End Adjustment Process > Prior to the First Pay of the New Year. Other employee changes can be keyed on the Employee Profile page. From the Payroll menu, select Hire/Profile > Employee Profile.Profile tab. From the People menu, select People List > Profile tab.

After such time, if changes are required, proceed to the After the First Pay of the New Year page. From the Year End menu, select Year-End Adjustment Process > After the First Pay of the New Year. for instructions.

• Business Numbers (BNs) - Confirm these numbers are correct by comparing them to your CRA PD7A form (Statement of Account). PD7As are available online through CRA’s My Business Account.

  Note: If your BN(s) are missing or invalid, tax forms are not produced.

• Province of Quebec Remittance Account Number - Confirm this number is correct by comparing it to your Revenu Quebec form TPZ-1015.R. 14.#-V.
• EI reduced rates, with associated BNs, for 2023
• Remittance Frequency Changes
• Manitoba Remittance Number for Health and Post Secondary Education Tax
• Ontario Employer Health Tax Number
• Newfoundland and Labrador Health and Post-Secondary Education Tax Number
• Northwest Territories/Nunavut Payroll Tax Number
• Nova Scotia WCB account number and rate
• Deferred Profit Sharing Plan Number(s)
• Registered Pension Plan Number(s) - must be 7 numeric digits. Confirm the accuracy of these numbers by comparing them to your policy plans.
• Total Worldwide Wages from 2023 for QHSF

Refer to CRA’s Pension Adjustment Guide (Publication No. T4084) for a detailed explanation of the PA calculation for each different type of plan (i.e., money purchase, deferred profit sharing, defined benefit). The maximum reportable pension adjustments for 2023 are:

• $31,560 for Money Purchase plans
• $15,780 for Deferred Profit Sharing plans
• $30,960 for Defined Benefit plan [($3,506.67 x 9) - $600]

Note: If you have pension adjustments to report and an actuary is providing the details for you, ensure they are aware that you must have the information prior to processing your tax forms.

• generated with your first payment date in November
• review to identify corrections or adjustments to be completed before Year End

• to access the report, go to the Payroll Reports page. From the Reports menu, select Payroll Reports.

  

• included with:
  • the last payroll run of the year
  • any extra runs processed after the final regular pay of the year, and dated in 2023
  • each Year End adjustment run

• to access the report from the final pay of the year or an extra run, go to the Payroll Reports page. From the Reports menu, select Payroll Reports.

  

• to access the report from a Year-end run, go to the Year-End Reports page. From the Reports menu, select Year-End Reports.

  

• generated when tax forms are requested

• to access the report, go to the Year-End Reports page. From the Reports menu, select Year-End Reports.

  

Reasons for CPP/QPP deficiencies:

• 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.

Reasons for EI deficiencies:

• Owners (may look like they are deficient)
• Year-end adjustments to gross pay or taxable benefits did not have a corresponding adjustment for EI.
• Incorrect code set up (Earnings or Taxable Benefits)
• Employee is Exempt (will appear on the balancing report as X, N, or B)

  • X = Exempt from EI

  • N = Exempt from EI; 1.4 Rate

  • B = Exempt from EI; 1st Reduced Rate

• Any payments made that had EI overridden to zero or calculated incorrectly.

Note: Valid employees who are exempt from EI will appear on the deficiency report. No action is required.

Reasons for QPIP deficiencies:

• Year-end adjustment to gross pay or taxable benefits did not have coinciding adjustments for QPIP.
• Incorrect code set up (Earnings or Taxable Benefits)
• Any payments made that had QPIP overridden to zero or calculated incorrectly.

Note: Valid employees who are exempt from QPIP will appear on the deficiency report. No action is required.

1. Calculate the difference between Gross pay and Box 14.

   Gross pay	1,309,279.97
   Box 14	- 1,369,963.60
   Difference	60,683.63

2. Review the Matrix report to find the answers.

   

   

In this example, all earnings are included in Box 14 so earnings do not account for any of the difference. However, the Matrix report reveals the following taxable benefits are reporting to Box 14:

• 41R – AD&D

• 43R – LIFE IN

• 63R – SL RRSP

Validation:

1. In Powerpay, go to the Year-End Reports page. From the Reports menu, select Year-End Reports.
2. Open the Tax Forms Package report.
3. Search for T4/T4A Employee Totals.

For employees with an S to the right of the Province, the form is delivered to Powerpay Self Service.

For employees without an S, review instructions for Powerpay customers without Self Service.

1. In Powerpay, go to the Year-End Reports page. From the Reports menu, select Year-End Reports.
2. Open the Tax Forms Package report.

3. Look on the first page for the Form Count chart.

   Employee eforms = forms were delivered in Powerpay

   1. Go to Year-End Reports page. From the Reports menu, select Year-End Reports.
   2. Click Tax Forms - Employee Copy.

   3. Print the forms for distribution to your staff.

   Employee forms = forms were printed to be delivered

   If they were not received, contact your Service Delivery Team.