When you create a tax status record, you need to define the Effective From and Effective To dates. The effective dates of a tax status record can't overlap with the dates of other tax status records for the same employee. Effective date ranges allow you to manage the ZZ - Canadian Beyond Provinces or US - Canadian Beyond Province tax status when employees work both in their province and beyond their province in the same year.
Payroll calculations are based on the most recent tax status. For example, if an employee has a tax status record with ZZ - Canadian Beyond Provinces selected, and its end date falls two days before the Pay Date of the current pay run, Dayforce ignores this tax status when calculating the employee's taxes. This is because, for the remainder of the pay run (in this case only two days), the employee didn’t have the ZZ - Canadian Beyond Provinces tax status.