In the Payroll > Tax Definitions screen of People in the Tax Status section, when you add a tax status record with the ZZ - Canadian Beyond Provinces or US - Canadian Beyond Province option selected, Dayforce calculates employee taxes as follows:
- Dayforce doesn’t withhold these provincial or territorial taxes:
- Provincial income tax
- QPP
- QPIP
- NT Payroll Tax
- NU Payroll Tax
- Health tax (for example, NL HAPSET, ON EHT, MB HE Levy, QC HSF)
- Dayforce withholds federal income taxes.
- Dayforce withholds EI and CPP at the normal rate, including for Quebec employees.
Dayforce also doesn't calculate the employer worker's compensation deductions for the employee's legal entity. The ZZ - Canadian Beyond Provinces or US - Canadian Beyond Province option doesn't prevent Dayforce from collecting other non-tax deductions that are set up in the employee's payroll elections, or garnishments.