Taxation Parameters for Canada

This section describes how to configure taxation parameters for legal entities in the Taxation Parameters tab of Org Setup > Org Payroll Setup > Legal Entity.

Configure Canadian Status Indian Taxation

If the legal entity employs Status Indian employees that work in a location that meets the government definition of a reserve, you can configure how the application applies Status Indian exemptions.

Note: If a payroll administrator records tax amounts for a Status Indian employee in the Adjustments, Checks, or Quick Entry tabs, the application applies the tax amount regardless of the configuration.

To configure Status Indian taxation parameters:

1. Go to Org Setup > Org Payroll Setup > Legal Entity and select a legal entity.
2. Click the Taxation Parameters tab.
3. Select the Apply Status Indian Calculations to Legal Entity’s Employees checkbox.
   
4. In the Calculate CPP For Status Indians drop-down list, select one of the following options:
   • Calculate CPP to include CPP/QPP totals in the employee’s tax calculations.
   • No CPP to exclude CPP/QPP totals in the employee's tax calculations.
5. Click Save.

You must also add the Status Indian exemption to the applicable employee records in People. See Configure Canadian Status Indian Exemptions.