Dayforce includes functionality to handle reporting of wages from taxable benefits in RL-1 form box G (QPP pensionable earnings) and box G-1 (taxable benefits in kind). Dayforce also ensures that T4 form box 26 (CPP/QPP pensionable earnings) equals the amount of RL-1 slip box G plus the QPP G-1 total limited taxable wages.
A tax authority tracks eligible wages, so that they are only recorded in box G-1 and not box G. When an employee has taxable wages that are eligible to be recorded in box G-1 of the RL-1 form, the application tracks these wages against the employee QPP G-1 and employer QPP ER G-1 tax authorities. These tax authorities are automatically added to the tax definitions of employees who pay QPP tax.
You can review these tax authorities in People by loading a Quebec employee's record and going to Payroll > Tax Definitions, and then scrolling to the Employee Payroll Tax section. They are also displayed in Org Setup > Org Payroll Setup > Legal Entity when you select the employee’s legal entity and then click the Tax Authorities tab.
The QPP G-1 and QPP ER G-1 tax authorities are only used for recording taxable wages for eligible earnings and always generate a zero tax amount. Moreover, they are always hidden from employee earning statements.
The Payroll Register Report shows the QPP G-1 and QPP ER G-1 tax authorities in italics with an asterisk beside the name, similar to how it does with other tax authorities that don’t impact the employee’s pay. The footnote at the bottom of the tax section states, "italicized amounts are not factored into net and impound totals."
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