Statutory Deductions

(View-only) Displays the CPP/QPP Status. If the employee's status is not correct, change the status on the Employee Profile page. From the Payroll menu, select Hire/Profile > Employee Profile.

To override the calculation of this deduction for this pay only, enter the specific dollar amount to be deducted for this employee.

This option is not used often because the required deduction for current pay must be calculated manually. The value entered is deducted for this pay period, and then cleared after the payroll is processed.

To deduct additional amounts more than the regular calculation of CPP/QPP for this pay only, enter the dollar amount to be added to the regular deduction.

This option is often used as the end of the year approaches. A review of CPP/QPP paid by each employee is completed at that time through a CPP/QPP deficiency report provided to you. (A deficiency can occur, for example, when the CPP/QPP exemption is applied incorrectly for an extra payroll run.)

Employees whose CPP/QPP deductions from previous pay periods have been too low can have the deficiency corrected by adding the deficient amount to the CPP/QPP deduction on the current payroll. This amount should be entered on or before the last payroll of the year.

The value entered is used for this pay period, added to the calculated CPP/QPP deduction, and then cleared after the payroll is processed.

(View-only) Displays the EI Category for an employee. If an employee's category is not correct, change the category on the Employee Profile page. From the Payroll menu, select Hire/Profile > Employee Profile.

To override the calculation of this deduction for this pay only, enter the specific dollar amount to be deducted for this employee.

This option is not used often because the required deduction for current pay must be calculated manually. The value entered is deducted for this pay period, and then cleared after the payroll is processed.

To deduct additional amounts more than the regular calculation of EI for this pay only, enter the dollar amount to be added to the regular deduction.

This option is often used after receiving an EI Deficiency Report from Dayforce. (A deficiency can occur, for example, when an employee is placed in an EI exempt status incorrectly. In such a situation, the employee's EI status initially has to be changed, and the appropriate EI deficiency determined and then entered. This amount is entered on or before your last payroll of the year. It is then added to the system-calculated EI amount on that payroll run.)

The value entered is used for this pay period, added to the calculated EI deduction, and then cleared after the payroll is processed.

A view-only field. Displays the QPIP Status.

If the employee's status is not correct, change the status. Go to the Employee Profile page. From the Payroll menu, select Hire/Profile > Employee Profile.

To override the calculation of QPIP for this pay only, enter the specific dollar amount to be deducted for this employee.

This option is not used often, since the required deduction for QPIP must be manually calculated.

The value entered is deducted for this pay period, and then cleared after the payroll is processed.

To deduct additional amounts over the regular calculation of QPIP for this pay only, enter the dollar amount to be added to the regular deduction.

This option is often used after receiving a QPIP Deficiency Report from Dayforce. (A deficiency can occur, for example, when an employee is placed in a QPIP exempt status incorrectly. In such a situation, the employee's QPIP status initially has to be changed, and the appropriate QPIP deficiency determined and then entered. Enter this amount on or before your last payroll of the year. It is then added to the system-calculated QPIP amount on that payroll run).

The value entered is used for this pay period, added to the calculated QPIP deduction, and then cleared after the payroll is processed.

(View-only) Displays the Tax Status for the employee. If the employee's status is not correct, change the status on the Employee Profile page. From the Payroll menu, select Hire/Profile > Employee Profile.

(View-only) Displays the Federal Tax Exemption for the employee. If the employee's amount is not correct, change the amount on the Employee Profile page. From the Payroll menu, select Hire/Profile > Employee Profile.

(View-only) Displays the Provincial Tax Exemption for the employee. If the employee's amount is not correct, change the amount on the Employee Profile page. From the Payroll menu, select Hire/Profile > Employee Profile.

Typically, you complete this section when an employee is first set up, based on their TD1 form. However, you can modify the values, as required.

Select an option and enter a corresponding value. You must do both actions to activate the option.

Select this option and enter a dollar value in the adjacent box to add to the calculated federal tax for the employee's earnings.

Select this option and enter a dollar value in the adjacent box to specify an amount of tax to take instead of the calculated federal tax amount.

This option is used rarely. If you select it, you should be aware that:

• this option disables the current calculation for federal taxes, and a change in earnings does not generate a new tax calculation.
• These permanent amounts are not cleared at the end of the year. You may have to review this amount with the employee to see if a new amount is to be entered as the tax tables could change for the new calendar year.
• If you choose this option, Dayforce recommends that you obtain a signed letter of agreement from the employee to keep on file.

This field appears only if an employee's tax status is set to a percentage on the Employee Profile page. From the Payroll menu, select Hire/Profile > Employee Profile.

Select this option and enter a percentage in the adjacent box to specify a permanent percentage value at which to calculate federal taxes on the employee's gross earnings.

This option is used rarely. It may be used when earnings fluctuate from one payroll run to another.

If you select this option, you should be aware that:

• This option disables the automatic movement to another tax bracket if earnings in any single payroll run fall into a higher or lower tax bracket (annualization of earnings to determine the federal tax percentage level).
• If you choose this option, Dayforce recommends that you obtain a completed Canada Revenue Agency form TDX1 from the employee to keep on file.

Note: Note: Do not use this option for commissioned employees who require a fixed percentage. Commissioned employees should complete a TD1X form every year. Entering the values from this form also provides an annualization of the tax bracket. For more information, see "Commissioned employees: Estimated Annual Earnings" in the Statutory Deductions Additional Permanent Values section below.

Cancels all options described previously, and performs the regular calculation for federal tax.

Note: This section applies to Quebec employees only.

Typically, you complete this section when an employee is first set up, based on their TD1P form. However, you can modify the values, as required.

Select an option and enter a corresponding value. You must do both actions to activate the option.

Note: For Quebec tax, the employee already has permanent Quebec tax amounts in place that conflict with these one-time amounts, Powerpay displays warning messages and proposed solutions.

Select this option and enter a dollar value in the adjacent box to add to the calculated provincial tax for the employee's earnings.

Select this option and enter a dollar value in the adjacent box to specify an amount of tax to take instead of the calculated provincial tax amount.

This option is used rarely. If you select it, you should be aware that:

• this option disables the current calculation for provincial taxes, and a change in earnings does not generate a new tax calculation.
• These permanent amounts are not cleared at the end of the year. You may have to review this amount with the employee to see if a new amount is to be entered as the tax tables could change for the new calendar year.
• If you choose this option, Dayforce recommends that you obtain a signed letter of agreement from the employee to keep on file.

This field appears only if an employee's tax status is set to a percentage on the Employee Profile page. From the Payroll menu, select Hire/Profile > Employee Profile.

Select this option and enter a percentage in the adjacent box to specify a permanent percentage value at which to calculate provincial taxes on the employee's gross earnings.

This option is used rarely. It may be used when earnings fluctuate from one payroll run to another.

If you select this option, you should be aware that:

• This option disables the automatic movement to another tax bracket if earnings in any single payroll run fall into a higher or lower tax bracket (annualization of earnings to determine the federal tax percentage level).
• If you choose this option, Dayforce recommends that you obtain a completed Canada Revenue Agency form TDX1 from the employee to keep on file.

Note: Note: Do not use this option for commissioned employees who require a fixed percentage. Commissioned employees should complete a TD1X form every year. Entering the values from this form also provides an annualization of the tax bracket. For more information, see "Commissioned employees: Estimated Annual Earnings" in the Statutory Deductions Additional Permanent Values section below.

Cancels all options described previously, and performs the regular calculation for provincial tax.

Note: This field appears only if it has been set up by your Customer Support Team.

Tax percentage to be applied to the description for Pay Element "OE" as displayed on your Payroll Register for both Federal tax and Provincial tax (if applicable).

Enter a percentage to apply to this specific pay element only (for example, Commissions). This percentage does NOT apply to any other earnings. The regular tax percentage does NOT apply to these earnings.

The specific earnings type to which this percentage applies appears in the statement (replacing the description for Pay Element "OE" as displayed on the payroll register).

For employees whose ONLY earnings are from commissions, do NOT use this option without consulting with your Customer Support Team.

Note: This field appears only if it has been set up by your Customer Support Team.

Tax percentage to be applied to the description for Pay Element "PE" as displayed on your Payroll Register for both Federal tax and Provincial tax (if applicable).

Enter a percentage to apply for this specific earning type (for example, bonus). This percentage does NOT apply to any other earnings. The regular tax percentage does NOT apply to these earnings.

The specific earnings type to which this percentage applies appears on the statement (replacing the description for Pay Element "PE" as displayed on the payroll register).

This option is useful to tax earnings that are not a regular part of the employee's earnings (for example, bonuses). The extra earnings do not then contribute to increasing earnings to another tax bracket, and the extra earnings are taxed at the flat amount indicated in the field for this option.

Note: If you do have an earnings type that is a bonus, the amount is taxed based on the employee's regular tax criteria. If, however, you wish to have the CRA and Quebec (if applicable) Bonus Tax calculation method applied, consult your Customer Support Team.

For commissioned employees, enter a dollar-value estimate of the annual earnings for this employee to be used for Federal tax and Provincial tax (if applicable).

This option is usually used for employees whose earnings are MAINLY from commissions.

For employees who have other regular earnings PLUS commissions, do NOT use this option without consulting with your Customer Support Team.

Note: This value is not cleared when you open the first payroll run of the new year (for example, Pay Period 001). The employee should complete a new TD1X form and, if there is a change to the existing value, it must be re-entered. You must also use the option Commissioned employees: Estimated annual expenses that estimates the annual tax-deductible expenses for commissioned employees.

For commissioned employees, enter a dollar-value estimate of the annual tax-deductible expenses for this employee to be used for Federal tax and Provincial tax (if applicable).

This value reduces the taxable income for the commissioned employee.

This option is usually used for employees whose earnings are MAINLY from commissions.

This value is not cleared when you open the first payroll run of the new year (for example, Pay Period 001). The employee should complete a new TD1X form and, if there is a change to the existing value, it must be re-entered. You must also use the preceding option, Commissioned employees: Estimated annual earnings, that estimates the annual earnings for commissioned employees.

If applicable, enter the dollar value indicated on the CRA letter received by the employee to reduce Federal taxable income .

An employee may apply to CRA for a tax reduction because of extra expenses or other reasons. They will receive a CRA letter that indicates a dollar value by which Federal taxable income will be reduced.

The value on the letter is an annual reduction. Powerpay automatically prorates the amount entered over the remaining periods of the year.

Note: This value is cleared when you open the first payroll run of the new year (for example, Pay Period 001). If the reduction is to continue, the employee must reapply and new values must be re-entered.

If applicable, enter the dollar value indicated on the provincial source deductions declaration letter received by the employee to reduce Provincial taxable income .

An employee may apply to the provincial tax office for a tax reduction because of extra expenses or other reasons. They will receive a letter that indicates a dollar value by which Provincial taxable income will be reduced.

The value on the letter is an annual reduction. Powerpay automatically prorates the amount entered over the remaining periods of the year.

Note: This value is cleared when you open the first payroll run of the new year (for example, Pay Period 001). If the reduction is to continue, the employee must reapply and new values must be re-entered.

Amount entered is treated as a Federal Tax Credit (K3 value). If applicable, enter the dollar value indicated on the K3 tax credit letter received by the employee from Revenue Canada, to reduce the amount of tax taken for the employee.

The value on the letter is an annual reduction. Powerpay automatically prorates the amount entered over the remaining periods of the year.

Note: This value is cleared when you open the first payroll run of the new year (for example, Pay Period 001). If the reduction is to continue, the employee must reapply and new values must be re-entered.

Amount entered is treated as a Provincial Tax Credit (K3P value). If applicable, enter the dollar value indicated on the K3P tax credit letter received by the employee from Revenue Canada, to reduce the amount of tax taken for the employee.

The value on the letter is an annual reduction. Powerpay automatically prorates the amount entered over the remaining periods of the year.

Note: This value is cleared when you open the first payroll run of the new year (for example, Pay Period 001). If the reduction is to continue, the employee must reapply and new values must be re-entered.

Amount entered will be treated as a labour-sponsored tax credit. If applicable, enter the dollar value required for the employee.

(This type of tax credit is applicable to Venture Capital funds where the employee is allowed a reduction in the income tax calculated based on the labour-sponsored tax credit amount that is entered.)

This value is cleared when you open the first pay run of the new year. For most customers (other than those who are seasonal and whose first payroll may be later in the year), this is Pay Period 01. If new values for the new year are required, they must be re-entered with the first pay.

Select an option and enter a corresponding value. You must do both actions to activate the option.

The value you enter is used for this pay period and then cleared after the payroll run is processed.

Note: This option disables the calculation for federal taxes. Your dollar value should take into account all the earnings the employee is getting this pay period. If the employee already has permanent federal tax amounts in place that conflict with these one-time amounts, Powerpay displays warning messages and proposed solutions.

Select this option and enter a dollar value in the adjacent box to add to the calculated federal tax for the employee's earnings. The employee may request additional amounts to be taken for various reasons. For example, they have income from another employer and want the additional tax taken from this job.

Select this option and enter a dollar value in the adjacent box to specify an amount of tax to take instead of the calculated federal tax amount.

This option is used rarely. If you select it, you should be aware that this option disables the current calculation for federal taxes.

This field appears only if an employee's tax status is set to a percentage on the Employee Profile page. From the Payroll menu, select Hire/Profile > Employee Profile.

Enter a percentage to act as the maximum percentage ceiling at which federal taxes may be calculated for the employee's gross earnings on this payroll run.

This percentage ceiling represents the maximum federal tax percentage that is taken, although a lesser amount of tax may be deducted depending upon the amount of earnings being paid to the employee.

This option is not used often. It can be used to limit the tax taken on the current gross pay which would otherwise be calculated in a higher tax bracket, even though the employee's annual pay would not require it.

Cancels all options described previously, and performs the regular calculation for federal tax.

Enter a dollar-amount value in this field to allocate taxes on the Earnings/Pay statements to the T4A.

When you are paying an employee earnings that need to report to the T4A, the tax amount also needs to be allocated to the T4A.

This dollar value overrides the amount of federal tax deducted and allocates the tax amount to the T4A.

If any T4A dollar values were missed during the year, contact your Customer Support Team to reallocate the amounts.