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Overview
To streamline tax calculations for businesses operating in Canada and to comply with CRA regulations, the International Payroll module allows for the automatic determination of an employee's work province. This method automatically determines the work province based on timesheet data for hourly and salaried employees.
Setup
Employee Profile – Tax Tab
Pgm: PYEMPLOY – Employee Profile; standard Treeview path: International Payroll > Setup > Employees > Employee Profile – Taxes tab
This tab is available in the International Payroll module when the selected company has the country code "CA" for Canada.
Apply Automatic Work Province
Select whether to include or exclude the employee from automatic work province calculations. If "Include" is selected, the system will analyze the timesheet data based on the rules for hourly and salaried employees and identify the province where the employee worked the most hours during the specified period. This allows the system to override the province manually set in the Work Province field on this tab.
For salaried employees, the determination of the work province will depend on the total hours recorded:
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Sufficient Hours Recorded: If the total hours recorded on the timesheet for a salaried employee are equal to or exceed the hours required for their pay period frequency (e.g., 40 hours for a 40-hour work week), the system will determine the work province based on the timesheet data.
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Insufficient Hours Recorded: If the timesheet hours are less than the required hours for the pay period frequency, the system will default to the work province set in the Work Province field on this screen. For example, an employee with the Work Province field set to "ON" enters 19 hours for the work location Vancouver (BC) for a 40-hour week. After the timesheet is posted and payroll is processed, taxes will be calculated for ON.
Payroll Control – Taxes Tab
Pgm: PYCOMPRO – Payroll Control; standard Treeview path: International Payroll > Setup > Company > Control – Tax tab
This tab is available in both the US and International Payroll modules. However, the Auto Work Province Calculation Method field is only available in the International Payroll module when the selected company has the country code "CA" for Canada.
Auto Work Province Calculation Method
Select whether to include all hours for the period, including processed checks, or to include only newly entered hours for the period, excluding processed checks, when using the automatic work province calculation method.
Examples
The following examples include scenarios for hourly and salaried employees:
Auto Work Province Calculation Method set to "All hours for the period, including processed cheques"
Scenario 1: Hourly Employee
Timesheet hours entered for an hourly employee with the Work Province field set to "ON":
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1 hour for Toronto (ON)
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2 hours for Quebec City (QC)
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4 hours for Vancouver (BC)
After the timesheet is posted and payroll is processed, taxes will be calculated for BC.
Scenario 2: Salaried Employee with Sufficient Hours
Timesheet hours entered for a salaried employee with a 40-hour week with the Work Province field set to "ON":
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29 hours for Vancouver (BC)
After the timesheet is posted and payroll is processed, taxes will be calculated for BC.
Scenario 3: Salaried Employee with Insufficient Hours
Timesheet hours entered for a salaried employee with a 40-hour week with the Work Province field set to "ON":
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19 hours for Vancouver (BC)
After the timesheet is posted and payroll is processed, taxes will be calculated for ON.
Auto Work Province Calculation Method set to "Newly entered hours for the period, excluding processed checks"
Scenario: Hourly Employee
Timesheet hours entered for an hourly employee with the Work Province field set to "ON":
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Prior timesheet with 5 hours for Vancouver (BC) with check already processed
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4 hours for Quebec City (QC)
After the timesheet is posted and payroll is processed, taxes will be calculated for QC even though the timesheet has less hours than those posted for BC.