canada_-_cpp_ei_ppip_exempt_setup
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canada_-_cpp_ei_ppip_exempt_setup [2015/02/27 15:11 (9 years ago)] – created derek | canada_-_cpp_ei_ppip_exempt_setup [2019/04/02 14:16 (5 years ago)] (current) – rreyes | ||
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- | Payroll Configuration to Conform CRA Requirements for T4 Report | + | ====== CPP / EI Exempt Employees====== |
- | 1. Enable exempt flags (Ex. CPP Exempt | + | Canada Pension Plan (CPP) and Employment Insurance (EI) as configured in Windward Payroll are setup as taxes. These taxes were mandated by Canadian Revenue Agency. However, there are provisions that an employee |
- | a. Open the employee exempt | + | |
- | b. Turn on flags for CPP Exempt and EI Exempt | + | |
- | 2. Print T4 - STMT REMUNERATION form | + | If an employee is CPP and/or EI exempt, special subtypes and calculation types was created to cater this special functionality in calculating Canadian income taxes. |
- | a. CPP and EI boxes must contain “X” marks signifying that the employee is CPP and EI exempt | + | |
- | 3. Generate T4 STMT OF REMUNERATION PAID XML EXPORT | + | As an example, when setting an employee |
- | a. Ensure | + | |
- | i. Select proper Tax Year (Ex. 2014) | + | |
- | ii. Provide Principal Owner SIN# | + | |
- | iii. Provide Unique Reference – this is user-defined numbers, i.e., any numbers will do | + | |
- | iv. Provide | + | |
- | v. Define the File Location, i.e., where do you want to save the file | + | |
- | vi. Enable Validate XML Export | + | |
- | vii. Click Generate XML to generate | + | |
+ | {{cppeixbox.jpg}} | ||
+ | |||
+ | The factors affecting the calculation is the subtype and calculation type being used. Thus, if an employee is EI exempt, an appropriate subtype will be used in creating the income item which is //Wages - EI Exempt//. The same thing goes for employees who were CPP exempt. The subtype for use will be //Wages-CPP Exempt// and also have 2 calculation types available for the regular wage and vacation pay. | ||
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+ | {{eixsubtype.jpg}} | ||
+ | |||
+ | After selecting the subtype, you will then need to identify which calculation type to use. Currently, we only have 2 which is for the regular wage and vacation pay. | ||
+ | |||
+ | {{EIXCalcType.jpg}} | ||
+ | |||
+ | < | ||
+ | |||
+ | Once the income type has been added using the appropriate subtypes and calculation types, you can then add the specific income tax to be withheld from the employee. |
canada_-_cpp_ei_ppip_exempt_setup.1425078678.txt.gz · Last modified: 2015/02/27 15:11 (9 years ago) by derek