In the Earnings tab of Payroll Setup > Earnings and Deductions, you can assign earnings the system Labor Sponsored Fund tax and compliance code. When you use this tax and compliance code, the earning is configured as a taxable benefit.
When you assign an earning the Labour Sponsored Fund tax and compliance code, the Tax and sub- tab for the earning has the following read-only settings defined:
- Name: Labour Sponsored Fund
- Description: Fondaction No QPP
- Earning Type: Taxable Benefit
- Process for Employment: Regular Payroll
- Is CAN Earning Code: Yes
- Reference Code: LABOR_SPONSORED_FUND
Also in the Tax and Compliance sub-tab, the Canada sub-tab has the following settings defined:
In the General section:
- Income Tax Calculation Method: Regular Pay Period
- Federal Tax: Yes
- Provincial Tax: Yes
- EI: Yes
In the Tax Form / ROE / Report Mapping section:
- RL1 (2017 - Present)
- Form Field: Box A, Box L
All other settings of the Tax and Compliance tab are cleared, including for CPP, QPP, QPIP, Quebec CSST, and the Quebec Reporting Flags for CNT, WSDRF, and Compensation Tax.
Earnings with the Labour Sponsored Fund tax and compliance code are mapped to RL-1 form boxes A and L, but not to box G-1.
In order for LSF taxable wages to be recorded in Box G-1 of the RL-1 form, you need to select an option in the LSF Type drop-down list. See Configure LSF Types.