You can update an employee's tax status in their HR record for Canadian employees who are subject to In Canada beyond the limits of any province/territory or outside Canada federal taxation.
When you enable this taxation for employees, Dayforce calculates their taxes appropriately and generates Canadian year-end tax forms that show the province code ZZ for their province of work or US for Canadians who work in the United States.
The beyond province taxation feature is meant for the following employees:
- Canadian residents who live and work in Canada but move to work in different provinces or territories during the year. For example, railway employees who work in different provinces from month to month.
- Canadian residents who work outside of Canada during the year and are paid by a Canadian legal entity. The countries outside of Canada don't need to have a physical location recorded in Dayforce.
These employees belong to Canadian pay groups and have Canadian work assignments. The beyond province taxation feature isn't used to apply taxes to earnings from a legal entity outside of Canada. For example, an employee has a US work assignment and pay group, and is paid under a US legal entity. The employee is subject to US taxation and receives a US W-2 tax form.
This functionality doesn’t include special requirements for expatriates.
See the following documents on the Government of Canada website: www.canada.ca:
- T4001 Employers' Guide - Payroll Deductions and Remittances
- T4032OC, Payroll Deductions Tables – CPP, EI, and income tax deductions – In Canada beyond the limits of any province/territory or outside Canada
For more information about beyond province taxation, see the following topics: