In Dayforce, an organization can have one or more EI rate groups recorded at the legal entity level. Each rate group has the following:
- An associated EI multiplier rate, which determines how much an employer contributes to EI for each payment.
- An associated EI reference number (also known as an RP number) that gets applied to payments.
You can review rate groups by going to Org Setup > Org Payroll Setup > Legal Entity, selecting a legal entity from the list, and clicking the Employment Insurance sub-tab. In this sub-tab, when you select a rate group from the list, the application displays its associated rate.
Each legal entity has a default rate group that applies to employees with a work assignment in the legal entity. However, in some cases, a specific employee might be assigned to a rate group in that legal entity that isn’t the default.
You can review these employee level settings by going to People, open an employee profile, and clicking Payroll > Tax Definitions. In the Employee Payroll Tax section of this screen, click the Employment Insurance ER tax for the legal entity to expand the override details for the tax. The application lists if there is an override to the default rate group, and you can add or edit the override as needed.
When employees are imported to Dayforce during implementation, it's possible for some to be assigned to the incorrect group. For example, employees were initially assigned to the default group for the legal entity when they should have been assigned to another group at the employee level.
In the case where the group is incorrect, you need to manually update it. Depending on the issue, you do this in either at the legal entity or employee tax definition level.
If this error persisted across one or more committed pay runs, you also need to adjust payments to use the EI reference code that is associated with the updated rate group. You do this by creating a maintenance off-cycle pay run and running the Auto Adjust wizard.
The Auto Adjust wizard is only available in maintenance off-cycle pay runs. This type of pay run does not allow changes to remittances. As a result, the Auto Adjust wizard is intended for changing the EI reference code that is associated with payments without affecting remittances for the payment. Any adjustments requiring an update of remittances need to be performed outside of the maintenance off-cycle run.
After you run the wizard and commit the maintenance off-cycle run, you can generate a separate tax form for each EI reference code in the Year End feature.