Configure Reduction of Canada Income Tax Deductions at Source

Payroll Administrator Guide

Version
R2026.1.1
ft:lastEdition
2026-06-15
Configure Reduction of Canada Income Tax Deductions at Source

You can configure payroll calculations for employees want to reduce their income tax deductions at source. These employee must have a letter of authority from CRA after completing a T1213 form.

Note: The feature supports only Quebec employees who reside in a province other than Quebec.

Role feature access:  

  • System Admin > System Admin > Client Properties > Payroll Properties
  • System Admin > System Admin > Client Properties > Properties
  • Application Container > People > Employee Profile > Payroll > Tax Definitions > Canada > Tax Status

To configure Dayforce to calculate tax deductions at source:

  1. Enable the tax feature in Dayforce
    1. Go to System Admin > Client Properties.
    2. In the Properties tab the in Payroll section, select the checkbox Allow Reduction of Canada Income Tax Deductions at Source for Cross Province Employment.
    3. Click Save.
  2. Configure the Quebec employee record in People.
    1. Open the employee’s record in People.
    2. In the Payroll > Tax Definitions screen, in the Tax Status section, click Add.
    3. In the Jurisdiction drop-down list, select Quebec.
    4. Enter when the employee’s tax status change starts in the Effective From field.
    5. In the Details section, select the checkbox Apply Income Tax Reduction for Cross Province Employment.
    6. Click Save.