Define Canadian Provincial Tax Information

Role authorization access: Employee Tax Definitions (All permissions)

Role feature access: Application Container > People > Employee Profile > Payroll > Tax Definitions > Canada > Provincial Tax Information

To define Canadian provincial tax information:

1. Go to People, open the employee profile, and click Payroll > Tax Definitions.
2. In the Provincial Tax Info section, click Add.
   
3. 
3. In the Effective From field, enter the date that the tax definition takes effect.
4. (Optional) In the Effective To field, enter the date that the tax definition expires. The default date is one year after the date in Effective From.
   
5. In the Total Claim Amount field, enter the total of the claims found on line 13 of the employee's TD1 personal tax credits return form.
6. The amount that you enter in this field overrides the default claim amount and is used to determine the amount of income tax the employee pays. To achieve a value of zero, see Total Claim Amount with Other Employer configuration.
6. In the Additional Tax Amount field, enter any other taxes that are deducted for the employee, such as, when the employee is receiving other income.
7. (All provinces) In the Charitable Donations and Medical Expenses field, enter the total amount of charitable donations that the employee has made or medical expenses the employee has incurred during the year.
8. (All provinces except Quebec) Select the Total Income Less Than Total Claim checkbox to withhold income taxes when the employee's total income is less than their total claim amount.
9. (Quebec only) Complete the following fields:
   1. If the employee lives in a northern region of Quebec, enter the employee's residency deduction and travel deductions in Deductions for Living in a Prescribed Zone.
   2. Note: For more information about prescribed zones, see the Revenu Quebec website (Prescribed Northern Zones).
   2. In the Deductible Support Payments field, enter the total amount of the support payments that the Quebec employee made that can be deducted from the employee's tax.
   3. In the Fondaction field, enter the amount that the Quebec employee contributed to the worker's fund of the Confédération des syndicats nationaux (CRN).
   4. If the Quebec employee works on commission or gets a combination of commission and salary, complete the following fields:
      1. In the Estimated Expenses field, enter the estimated amount of the employee's expenses for the year.
      2. In the Estimated Renumeration field, enter the estimated amount of the employee's earnings for the year.
   5. Select the Health Contribution Exemption checkbox when the employee lives in Quebec and is exempt from the Quebec Health Contribution.
   6. Important: Dayforce automatically clears this checkbox at the start of each tax year. When the employee is still exempt, you must reselect the Health Contribution Exemption checkbox at the start of the new year.
10. Click Save.

Configuring Tax Status Parameters for Quebec Employees

There are some configurable tax status parameters that are specific to Quebec employees.

Role feature access: Application Container > People > Employee Profile > Payroll > Tax Definitions > Canada > Tax Status

To configure tax status parameters for Quebec employees:

1. Go to People, open the employee profile, and click Payroll > Tax Definitions.
2. In the Tax Status section, click Add.
3. In the Jurisdiction drop-down list, select Quebec.
4. In the Effective From field, enter the date that the tax definition takes effect.
5. (Optional) In the Effective To field, enter the date that the tax definition expires. The default date is one year after the date in Effective From.
6. Complete the applicable fields. See Quebec-related fields in the Details section in Tax Status.
7. Click Save.

Configuring Code L-11 in RL-1 Slips for Quebec Employees

The rate entered in code L-11 in RL-1 slips is used to calculate the security option deduction received on or after June 25, 2024. To apply the rate in the payroll calculations, you must configure the rate in the Quebec employee's profile in the Employment > Employee Properties screen of People.

Role feature access: Application Container > People > Employee Profile > Employment > Employee Properties

To configure the rate used in code L-11 in RL-slips for a Quebec employee:

1. Go to People, open the employee profile, and click Employment > Employee Properties.
2. In the Employee Properties table, add the property Quebec Stock options rate.
3. In the Value column, select a rate.
4. Click Save.