Enter YTD Amounts of Employer Taxes for Canadian Legal Entities

To keep their tax records accurate, Canadian legal entities that start using Payroll midyear in Dayforce must enter amounts already paid for EI, CPP, QPP, and various provincial and territorial health taxes. Many of these legal entities migrated to Dayforce Payroll midyear, or began by using the WFM features and later added Payroll to their Dayforce system.

In the YTD Amount tab in Org Setup > Org Payroll Setup > Legal Entity, you can enter the employer deductions paid for the year to date before the payroll start date. These amounts must include total taxable wages and limited taxable wages.

Before You Begin: This topic is meant for Implementation users. You should only use the YTD Amount tab if you can't include one or more employer taxes in the Pay Run History Import as part of the implementation process. For details about that import, see the Dayforce Pay Run History Import Specification.

If the legal entity has more than one pay group, create a record for each pay group and split the amounts appropriately.

To enter YTD amounts for a migrating Canadian legal entity:

1. Go to Org Setup > Org Payroll Setup > Legal Entity and select a Canadian legal entity.
2. Click the YTD Amount tab.
3. In the Pay Group drop-down list, select a pay group for which you want to enter previous YTD amounts.
4. In the Funding Identifier drop-down list, select a funding identifier.
5. In the Migration Year drop-down list, select the year when the legal entity migrated to Dayforce Payroll.
6. In the Employer Employment Insurance (EI) section, click Add to create an entry and fill out the following fields:
   • EI Rate Group: Select the EI rate group.
   • Tot Taxable Wage: Enter total taxable wage.
   • Ltd Taxable Wage: Enter limited taxable wage.
   • Taxes: Enter taxes.
7. In the Employer Canada Pension Plan (CPP) section, click Add to create an entry and fill out the following fields:
   • EI Rate Group: Select the EI rate group.
   • Tot Taxable Wage: Enter total taxable wage.
   • Ltd Taxable Wage: Enter limited taxable wage.
   • Taxes: Enter taxes.
8. In the Health Taxes section, enter the insurable wages earned by the pay group's employees in the Wages field of the appropriate taxes and premiums. For example, enter the pay group's insurable wages for EI in the Wages field in the Employer Employment Insurance (EI) section.
9. Enter the taxes paid for the pay group's employees in the Taxes field of the appropriate taxes and premiums.
10. Click Save.

The health tax wage amounts affect whether the health taxes are applied. Each tax has an exemption amount, so when wages are below that limit, the tax isn’t paid. When a legal entity reaches the legislated threshold for each health tax, Dayforce automatically calculates and applies the tax. The prior wage amount entered in the YTD Amount tab helps determine when that threshold is reached for a legal entity in a migration year. These amounts are also reported in the Payroll Register and Payroll Summary Report.