International Payroll - Frequently Asked Questions

Taxes

Are Canadian taxes calculated using Vertex?

Calculation of Canadian taxes is done completely through Enterprise and does not use Vertex software. The tax codes and rates are pre-populated and are updated by CMiC with every tax change.

How can I verify taxes were calculated prior to printing the payroll checks?

The most direct method of verification is to run the Payroll Register Report or the Employee Pay History query for an employee in the current payroll run. Specify the current period only and browse for TX (Tax) Transactions. This can be done to verify the benefits, deductions, leave used, expenses paid, or loan payments made in the period.

Once verified, proceed with the printing of the Payroll Checks and EFT Payments.

What's new in 2023 for Canadian taxes?

There is an important update to Canadian taxes in 2023 regarding the Canadian Dental Care Plan (CDCP) reporting on T4 and T4A tax slips. The Canada Revenue Agency (CRA) will be requiring employers to provide details regarding dental coverage offered to their employees. This information will assist in verifying eligibility for the Canada Dental Benefit. Employers are required to specify whether the employee or any of their family members were eligible for dental care insurance or any form of dental services coverage as of December 31, 2023, when submitting the 2023 T4. To learn more about this update, refer to International Payroll - Canadian Dental Care Plan Reporting in 2023.

What's new in 2024 for Canadian taxes?

There is an important update to Canadian taxes in 2024 regarding the Canada Pension Plan (CPP) and the Quebec Pension Plan (QPP). A second earnings ceiling (YAMPE) will be introduced, requiring both employees and employers to contribute an additional 4% on earnings exceeding the standard limit. Please anticipate adjustments in your 2024 T4 slip, specifically in boxes 16A and 17A, reflecting extra CPP2 and/or QPP2 contributions. To learn more about this new update, refer to International Payroll - Canadian Tax Changes to CPP in 2024.

Transactions

What are the standard transaction types as coded for queries, screens, and reports?

There are several queries and reports that may include a transaction type to represent the type of item being detailed. The standard transaction types used throughout the CMiC Enterprise system are:

  • BN – Benefit

  • BW – Basic Wage

  • DE – Deduction

  • EX – Expense

  • LE – Leave

  • LI – Loan Interest

  • LP – Loan Principle

  • TX – Tax

  • WC – Workers’ Compensation

What are the various transaction codes?

Unlike the transaction types which are standard, there are customized transaction codes. Standard codes are used to identify items like normal hours (NWHR) or double overtime (DTHR). Others exist depending on the codes used when setting up items like the tax codes, benefits, deductions, etc., from the Local Tables sub-menu. As such, they may vary from company to company.