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canada_-_cpp_ei_ppip_exempt_setup

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canada_-_cpp_ei_ppip_exempt_setup [2019/03/29 18:50 (5 years ago)] rreyescanada_-_cpp_ei_ppip_exempt_setup [2019/04/02 14:16 (5 years ago)] (current) rreyes
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 ====== CPP / EI Exempt Employees====== ====== CPP / EI Exempt Employees======
  
-In some cases, an employee can either be CPP and/or EI exempt. In this setup, special subtypes and calculation types was created to cater this special functionality in calculating Canadian income taxes.+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. Howeverthere are provisions that an employee or an employer can be exempt from these taxes. 
 + 
 +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.
  
 As an example, when setting an employee to be EI exempt, in the //Employee Details// tab of the employee setup there is a check box for EI exempt. If exempt for both CPP and EI, then both check boxes needs to be checked. However, this check boxes doesn't affect the tax calculation at all. This is just an information only and is only affecting //Box 28 of the T4 Statement of Remuneration form//. As an example, when setting an employee to be EI exempt, in the //Employee Details// tab of the employee setup there is a check box for EI exempt. If exempt for both CPP and EI, then both check boxes needs to be checked. However, this check boxes doesn't affect the tax calculation at all. This is just an information only and is only affecting //Box 28 of the T4 Statement of Remuneration form//.
  
-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 +{{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. 
 + 
 +{{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}} 
 + 
 +<note>You may contact Windward Support if you need calculation types other than the Regular Wage and Vacation Pay for exempt employees</note> 
 + 
 +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.1553910623.txt.gz · Last modified: 2019/03/29 18:50 (5 years ago) by rreyes