ADP Canada’s Product Guide Welcome to ADP Canada! Our commitment to deliver World Class Service to our Clients is our first priority and we continually strive to ensure exceptional client satisfaction. To better service you, we are pleased to present you with this Product Guide. This Product Guide was designed to be used as a year-round tool, and will be particularly helpful as you process and complete Year-end. It can be referenced frequently as you complete your Year-end each year. Please read this manual carefully and thoroughly. This Product Guide provides detailed explanations and instructions for each of our Year-end Processes and all versions of our ADP Canada payroll applications. Your ADP Canada Client Services Group will be referencing this information as they assist you throughout your Year-end Process. In addition to this Product Guide, our ADP Canada Client Services Group is always available to assist you in answering any questions that you might have. Please be advised that ADP Canada may monitor and record your calls to ensure Quality Assurance. We hope that this Year-end will be the start of many more great and successful Year-ends to come! Sincerely, ADP Canada
Using ADP Canada’s Product Guide Product Guide Features •
Comprehensive Information Concerning ADP Canada’s Payroll Products and Services
General Payroll Fundamentals
Year-end Process Tips and Instructions
How this Product Guide is Organized This Product Guide was created to compliment your current Year-end Procedures Guide. Designed to provide further clarification, this Year-end package provides vital information as to how ADP Canada conducts the Year-end Process. With both the new and experienced Clients, this manual will provide the necessary Year-end related information required to successfully complete your Year-end process with ADP Canada. After you have become familiar with the Year-end Process, you can use this Product Guide as lasting reference.
This Product Guide is divided into 4 Chapters: Introduction • 1 – Payroll Processing • 2 – Payroll Scheduling • 3 – Year-end Processing • 4 – Year-end Preparation
How to Provide Feedback and Suggestions As a valued client, your comments and recommendations are essential to our continual effort to improve your ADP Canada Products and Services. Please forward your written suggestions to your ADP Canada Client Services Group.
Thank you for choosing ADP Canada! We look forward to further opportunities to enhance your payroll products and services!
Table of Contents ADP CANADA’S PRODUCT GUIDE .............................................................................. USING ADP CANADA’S PRODUCT GUIDE ................................................................. 2 TABLE OF CONTENTS .............................................................................................. 3 CHAPTER 1 – AAYROLL PROCESSING EMPLOYEE INFORMATION ........................................................................................ 5 SPECIAL PAYMENTS ................................................................................................ 9 EXTRA OR SEPARATE BONUS PAYROLLS ............................................................... 10 VERIFYING YOUR PAYROLL OUTPUT ...................................................................... 12 MANUAL CHEQUES/PAY REVERSALS ..................................................................... 15 CHAPTER 2 – AAYROLL SCHEDULING PAYROLL SCHEDULE ............................................................................................. 18 MR SCHEDULE ..................................................................................................... 19 CHAPTER 3 – AEAR-END PROCESSING ADJUSTMENTS ...................................................................................................... 21 ADJUSTMATE FOR WINDOWS SOFTWARE .............................................................. 23 THE ADP CANADA ADJUSTMATE FOR WINDOWS CYCLE ...................................... 24 ADJUSTMENTS AND SPECIAL PAYS FORM (A.S.P.) ................................................. 27 ASCII FILE ADJUSTMENT ...................................................................................... 29 CHAPTER 4 – AEAR-END PREPARATION UTILIZING THE MASTER CONTROL TO PREPARE FOR YEAR-END .............................. 31 QUARTERLY AND ANNUAL REGISTERS ................................................................... 35 TAX VERIFICATION LETTER .................................................................................... 39 TAX FORMS INFORMATION ( T4, T4A, RELEVE 1, AND RELEVE 2) .......................... 42
Speaking about Payroll Processing Payroll Processing is designed to allow you to best prepare for the upcoming events that occur repetitively during your Year-end Process. This chapter was created as a quick reference to ensure that you are keeping on track with ADP Canada’s Year-end Process.
Topics Include: • • • • •
Employee Information Special Payments Extra or Separate Bonus Payrolls Verifying Your Payroll Output Manual Cheques/ Pay Reversals
Employee Information Employee Status The Employee Status can be any one of three values: A (Active) represents the status assigned to new employees. L (Leave of Absence) T (Terminated).
When you re-hire a leave of absence or terminated employee within the same calendar year you must re-activate their employment status. You do not need to re-enter all the information about the employee. If the employee was an automatic paid employee, i.e. an hourly employee with standard hours or a salaried employee, they will be paid automatically when reactivated. It is not necessary to post the hours or the salary. If the employee was terminated the previous year you may need to treat the employee as a new hire and use a new file number (Refer to comments for Archived/Purged employees). When the Employee Status is changed from active (A) to leave of absence (L) or terminated (T) and your company is set up with the automatic ROE feature, the ROE will be produced.
Archive/Purge Routine Starting with the first payroll of the year, employees who will be archived will be identified by the message “Set for Purge” in the Personnel Information section of the Master Control. For most clients, each year in early March, ADP Canada automatically archives (or purges) terminated employees. These employees will no longer appear on the Master Control. However, terminated employees will be retained on the company's Masterfile, but are only available for previous year adjustments. The last page of the Master Control/ Company Totals page displays the next available employee numbers for new hires. Once archived, the file number cannot be rehired or used for a new employee. A list of these archived file numbers will appear on the Master Control. These archived employees will be completely removed from the company’s Masterfile in November of the same year. Once the file number is deleted, you may re-use it for a new hire.
Employees who qualify for both of the following conditions will be archived or purged: i) ii)
Terminated (Status = T) No activity (pays, Masterfile changes, Quarter 4 quantitative fields are equal to zero etc) after week 47. Refer to the LWW (Last Week Worked) field in the Pay section of the Master Control.
Preventing the Archive/Purge Changes to the employee’s Masterfile information will prevent this archive/purge routine. Most Clients prefer to simply change the employee’s status to L (Leave of Absence). The coding to cancel the purge must be submitted and processed by the last day of February. If you need to cancel the archive and/or purge process please contact your ADP Canada Client Services Group.
Please note: ADP Canada PC/Payroll for Windows (PCPW) Clients (only): During your first payroll transmission following the archive/purge, you will automatically receive a Purge File. It is critical to process this file immediately to ensure the ADP mainframe is in sync with your PC database by deleting the archived employees.
Employee Changes leading to Transfers Employee transferring to a New Province of Employment An employee must receive a separate Tax Form for each province in which they worked. You must set the employee up with a new file number for each province. This process may vary depending on your input method. The employee is required to pay up to the annual maximum withholding for CPP/QPP, EI and PPIP between their file numbers for any calendar year. To ensure that the employee deductions do not exceed the annual CPP/QPP, EI and PPIP maximums, prior CPP/QPP, EI and PPIP withholdings must be transferred to the new file number. To proceed, follow the instructions as outlined in the section “How To Transfer Prior CPP/QPP and EI/PPIP To a New File Number” on the following page located under your payroll input method.
Employee transferring from One Business Number (BN) to another Business Number (BN) If an employee moves from one Business Number (BN) to another Business Number (BN) he must receive a separate Tax Form for each Business Number (BN). You must set the employee up with a new file number. This process may vary depending on your input method. Confirm with the Federal/Provincial government if the employee is required to begin payments again for CPP/QPP and EI/PPIP. If they are only required to pay up to the annual maximum withholding for CPP/QPP, EI and PPIP between file numbers then you will need to transfer prior CPP/QPP, EI and PPIP to the new file number. To proceed, follow the instructions as outlined in the section “How to Transfer Prior CPP/QPP, EI and PPIP To a New File Number” on the following page located under your payroll input method.
How to Transfer Prior CPP/QPP, EI and PPIP to a New File Number PC Payroll for Windows Clients Enter these values directly into the new file number through the payroll software. This can be accomplished by accessing the employee folder, navigating to the Employee Menu, selecting Prior File # Information, and entering the values from the original file number.
PC Payroll for Windows Clients > v. 5.x Use SCET (Same Control Employee Transfer) window to transfer employees and to enter Prior Taxables by accessing the employee folder, navigating to the Employee Menu, selecting Transfer, Copy to Another File# (Same Co) and (tick) Prior Taxable Amounts. Telephone Payroll Clients Call these values in with regular input using the code 811 for Prior CPP/QPP, 818 for Prior EI and 81C for Prior QPIP.
Special Payments Vacation Payments There are many different ways to pay vacation earnings. Some considerations to address when paying out vacation are identified below: •
When paying vacation earnings to an employee, you should use an earning code specifically set up as vacation earnings. This will give you a complete audit trail in the event that at a later date you must verify that the vacation was indeed paid.
When a Salaried employee is on vacation and received their vacation pay in advance, you must cancel their automatic pay from processing on the next payroll.
If you issue vacation pay in advance and you want the future weeks scheduled amounts to apply, you can enter Deduction Forecasting, located in paydata/deduction tab (Week # the employee will be absent) on the Vacation Payment. For Telephone payroll tell your operator you want to use 45P and the Week #. However, any deductions or Taxable Benefits that are calculated by ADP Canada may need to be posted manually, check with your ADP Canada Client Services Group for your specific requirements.
Lump Sum Payments Some of the common examples of this type of earnings are: • • • •
Payment from a Pension Payment from a Deferred Profit Sharing Plan (DPSP) Severance Pay Retiring Allowances (eligible/not eligible for rollover to an RRSP)
The Federal/Provincial Governments have very specific guidelines on the calculation of taxes and year-end reporting requirement for these payments. Please contact the appropriate agency to obtain the details prior to contacting ADP Canada to set up the earnings. Each reportable box on a Tax Form will need a unique earning code. Please note: You must use L as the frequency code for Lump Sum payments. Using Tax Frequency L will not increase the Number of Weeks Worked (NWW), apply an additional CPP/QPP Exemption or deduct any fixed scheduled amounts (refer to Master Control).
Extra or Separate Bonus Payrolls To prevent possible CPP/QPP, EI or QPIP discrepancies, we suggest that you issue extra payments to employees on a second cheque with your normal payroll processing. To schedule an Extra Payroll or a Separate Bonus Payroll, contact your ADP Canada Client Services Group at least one week prior to the processing date. Please refer to your Payroll Schedule for a listing of currently scheduled payroll week numbers and pay dates.
Special Considerations Extra payroll runs will result in an increased number of payroll records for your employees. This could potentially create an over or under deduction of CPP/QPP and incorrect Record of Employment (ROE) values. To avoid this issue, please consider: • •
Using an existing EI assessment week number to top up payment Using Tax Frequency 0 or B. The use of these codes will not increase the Number of Weeks Worked (NWW), apply an additional CPP/QPP Exemption or deduct any fixed scheduled amounts.
Tax Frequency B - Bonus Routine When using Tax Frequency B, the employee’s Year-to-date (YTD) and Number of Weeks Worked (NWW) fields are used when calculating Federal and Provincial Taxes. Tax Frequency B should not be used under the following conditions: • For New Employees hired part-way through the year, or • •
For New Clients who have joined ADP Canada without updating Year-to-date and/or Number of Weeks Worked information. Standard Hours missing for Hourly employees
The absence of one or both of these fields will impact the accuracy of the tax calculation. Please note: Should it be necessary to cancel a scheduled payroll or the extra payroll run, please contact your ADP Canada Client Services Group as soon as possible.
Funding the Extra Payroll Payrolls are scheduled and funded in accordance with ADP Canada’s funding requirements. A change in your Payroll Schedule, which may impact your present funding obligations, will require prior approval from ADP Canada. If you require an Extra Payroll, such as a Bonus Run where the total debit amount of the payroll will exceed the maximum value allowed set up with ADP Canada, a Special Funding arrangement may be required. Please notify your ADP Canada Client Services Group to make the necessary arrangements, as soon as possible, but no later than one week prior to the processing date.
CPP/QPP Exemption Calculation To determine the pay period exemption amount, the annual exemption amount is divided by the number of pay periods in the year associated with your payroll tax frequency. This applies not only to regular pays, but also to manual cheques, pay reversals and adjustments. For example, an annual exemption is $3500.00. A biweekly payroll would use $3500.00 divided by 26 = $134.62 as the pay period exemption amount. Therefore, each time your payroll is processed, the first $134.62 will be exempted from the CPP/QPP calculation for each employee. Extra payroll runs use the same logic, this could consequently result in extra exemptions being applied during the year, resulting with shortages in CPP/QPP contributions. ADP Canada tracks the exemption used by each employee in the field ‘YCPP X used’ on your Master Control. Although it is still possible to over exempt an employee with additional payroll runs, the ADP Canada system will not allow an employee to exceed the annual exemption in any calendar year. Please be aware, that any manual overrides made to the CPP/QPP deductions will still supersede the ADP Canada system calculation.
Special Considerations for New Clients If you started your payroll processing with ADP Canada during the year, this feature will not be available until the following year, unless you: •
Can include the number of weeks worked prior to your payroll conversion to ADP Canada along with your Year-to-date balances from your previous payroll source, or
Can provide ADP Canada with the amount of CPP/QPP exemptions used from your previous payroll system.
Verifying Your Payroll Output What You will Find in Your Payroll Output: 1. Cheques/ Notifications of Deposit Each employee paid will receive a detailed statement of earnings and deductions with either a cheques or a notification of deposit attached.
2. Payroll Register This report contains a listing of all payments and voids (manual cheques) entered for the current payroll.
3. Master Control This report lists of all employees on your Masterfile. It contains indicative information, such as Name, Address, Social Insurance Numbers, and Quantitative Information, such as Year-to-date gross earnings. The company Year-to-date totals print on the last page of the report. Archived file numbers appear on the last page of the report.
4. Advice of Debit This gives a total of payroll charges. These include the Net pay for cheques and direct deposits. All statutory deductions for both employee and company CPP/QPP/EI/QPIP Employee & Employer, Federal and Provincial Tax, HSF Tax, EHT Tax etc). If your company uses more than one Business Number (BN) and the ADP Canada Tax Filing services, the Advice of Debit will show charges for net cheques and deposits. You will also receive separate management reports (Multi-corp Tax Remittance Listing) displaying the charges for employee and employer CPP/QPP, employee and employer EI/QPIP , Federal Tax, Provincial Tax, EHT, HSF by Business Number (BN) and if applicable, Manitoba Hapset , Newfoundland & Labrador HAPSET, Northwest Territories and Nunavut Remittance Reports. The total amount reflected on each report should be added with the Advice of Debit for funding purposes if you use ADP’s Tax Filing Services.
5. Payroll Summary This report summarizes the totals for each department. It does not give a breakdown by employee. You have the option to print a custom title for each department 6. Other optional reports In Addition to the Reports Listed Above, you may also receive some of the following Optional Reports: i) Payroll Audit Report ii) Personnel Change Report iii) Action Flag Report iv) ROE (Record of Employment) v) Employment Insurance History report vi) Canadian Family Support Summary vii) Employee Master Profile Cards viii) Financial Services Detail/Summary report (Third party remittances: CSB/RRSP etc)
ix) x) xi) xii)
Labour Distribution Report Deduction In Arrears (DIA) Management Reports (MR’s) / General Ledger report (GL) Unused Deduction Report • This report lists any deduction that could not be taken on the current payroll for active employees. For example, the active employee was not paid this payroll, did not earn enough net to deduct the scheduled or calculated amounts, or had reached a goal limit.
Immediate Verification of Your Payroll Ensures Timely and Accurate Employee Payments Before distributing cheques and notification of deposits to your employees, you must check the documents supplied by ADP Canada and balance your payroll output. To do this, ensure that the totals from the reports provided with your payroll output match those from your internal payroll documents. Once you have determined that all the payroll transactions processed for the current pay period are complete and accurate, you can distribute employee pay statements. The Following Steps will help to ensure that All the Payroll Entries are Accurate:
1. Verify your pay period ending date and date of pay at the bottom of the Payroll Register. 2. Check the totals on the Payroll Register to verify that all deductions and Taxable Benefits processed correctly. 13
3. 4. 5. 6. 7.
Compare the total hours on the Payroll Register to your internal documents. Verify new employee information on the Master Control. Verify changes to existing employees on the Personnel Change report. Verify all manual cheques and pay reversals did process accurately. Check the Unused Deduction report to note which deductions you will need to recover later. 8. Check any calculation or item that you asked ADP Canada to change or add since your last payroll for accuracy. Finally keep the Advice of Debit to compare to the Government Receipt (PD7A) once this has been received.
Manual Cheques/Pay Reversals Update all manual cheques/pay reversals as soon as possible through your normal payroll input.
Tax Frequency When entering a manual cheque or a pay reversal, if the Tax Frequency field is left blank, the system will default to the employees normal pay frequency. If this is not the case, enter the appropriate Tax Frequency in this field. For example, for a biweekly payroll, if the pay reversal or manual cheque represents one week of earnings, enter the Tax Frequency as 1. The Tax Frequency number used is accumulated in a field referred to as Number of Weeks Worked (NWW) and is displayed in the Pay section of the Master Control. (Tax Frequency also impacts the CPP/QPP exemption used calculation, this is discussed in greater detail in the Extra Payrolls section.) The “Number of Weeks Worked” (NWW) field is stored and used for tax calculations on non-periodic payments, such as bonus payments. Entering the correct Tax Frequency on manual cheques or pay reversals will ensure accurate tax calculations on any future periodic payments and that the appropriate Tax Forms are updated. i.e. Tax Frequency code L will cause the earnings/taxes to be reported on a T4A or a Relevé 1 or Relevé 2.
Tax Frequency Options: 0
This code will not increase the Number of Weeks Worked (NWW), or apply an additional CPP/QPP Exemption. Frequently used for top up payments
1 2 3 4
Weekly Biweekly 3 weeks 4 weeks Bonus Method - This code will not increase the Number of Weeks Worked (NWW), apply an additional CPP/QPP Exemption or collect fixed scheduled amounts. Lump Sum payments- This code will not increase the Number of Weeks Worked (NWW), apply an additional CPP/QPP Exemption or collect fixed scheduled amounts. Monthly Semi-monthly
B L M S
If an employee was hired or terminated mid-way through the pay period you should change the Tax Frequency for that pay period so that the system will perform the correct calculation of statutory deductions. For example, consider your company pays on a biweekly basis:
A new employee or a terminating employee worked only one week of the pay period, therefore, you need to input a 1 (weekly) Tax Frequency on the pay entry.
An existing active employee is to be paid for one week only and no pay for the next week, the Tax Frequency should remain as biweekly.
Employment Insurance (EI) Assessment Week Number When entering a manual cheque or a pay reversal it is important to enter the correct EI assessment week number and tax frequency code. The default (leaving the field blank) is the current week number of your payroll. If the payment belongs to a previous or future week, enter the appropriate week number in the EI week number field. If you are not certain what week number to use, the following documents display the week number: • • •
Master Control (at the bottom of each page to the right of your Company’s name) Payroll Register (at the bottom of each page to the right of your Company’s name) Payroll Schedule (in the last column on the left)
This field is the reference week number that should be used when adjusting payroll records with manual cheques or pay reversals. Proper use of this field will help to ensure Insurable Earning records are created properly for the production of Records of Employment (ROE).
Speaking about Payroll Scheduling Scheduling your payroll production is an important component of the payroll process. Understanding the information contained in this section will help to ensure your payroll is processed according to your requirements.
These Reports Include: • •
Payroll Schedule Management Report Schedule
Should you have any questions about your payroll schedule, please contact your ADP Canada Client Services Group.
Payroll Schedule The Payroll Schedule is designed to display customized pay dates, period ending dates, scheduled deductions and benefits, special effects, and management reports for the entire year. Entering very specific criteria into the scheduling system creates the schedule. For Example: • Pay date is always on Friday. • Period ending date is always on the previous Saturday. • Schedule code U is to be deducted on the last pay date of the month. • All other scheduled codes are to be deducted every payroll. • Input is always on the Monday after the period ending date. • Output is always on the Tuesday (When Monday is a holiday, input is on the Tuesday, output is on the Wednesday). If you need to override any of the pre-programmed criteria notify your ADP Canada Client Services Group in writing. If you have overridden any date(s) in the current year, these override(s) will not automatically carry forward into the next year. You must notify ADP Canada each year to make the change(s). Each year, in late summer, ADP Canada projects a new Payroll Schedule for the following year. The projection will result in a new Payroll Schedule printout for the following year being generated and sent to you automatically. When you receive this new schedule, verify all dates and scheduled codes for accuracy. Ensure enough time has been allotted between input dates and deposit dates to guarantee the funding. Pay particular attention to payroll processing on or around statutory or company specific holidays (for example, January 1, Family Day, Good Friday, July 1, November 11 and December 25/26). Based on your pay dates ADP scheduling system will automatically calculate how many pays your company will have in the year. If your payroll frequency schedule shows you will change from 52 to 53 for weekly payrolls or from 26 to 27 for bi-weekly payrolls the system will automatically adjust the CPP exemption but you may wish to modify your company specific calculations. If necessary contact your Client Services Group. If you have additional scheduled runs (Example: quarterly commission / vacation / bonus) that process on a consistent date, inform your ADP Canada Client Services Group of the details. This type of extra payroll run can be programmed to automatically project each year. If the extra payroll run is not consistent each year, then you will need to notify ADP Canada with the details each year. These runs will need to be individually scheduled with all the deductions and special effects required to process the payroll correctly.
Each time a change is made to the scheduling system a new Payroll Schedule download and printout will be forwarded to you with your next payroll for your verification.
Please note: Payrolls are scheduled and funded in accordance with ADP Canada’s funding requirements. A change in your Payroll Schedule which may impact your present funding obligations, will require prior approval from ADP Canada.
PC Payroll for Windows (PCPW) Clients In addition to the Payroll Schedule printout, the PCPW software enables you to load your Payroll Schedule directly into your payroll database. This provides you the opportunity to review all your Payroll Schedule details for the entire calendar year. The schedule data is transferred directly into your payroll database through a downloaded schedule file. A new schedule file will automatically be created each year ADP Canada projects the new Payroll Schedule for the following year. A new schedule file will also be created each time a change is made to the scheduling system throughout the year. On your first payroll transmission after the new schedule file has been created, a message will indicate that the Payroll Schedule is automatically being loaded into your payroll database. No further action will be required. View the log files at the end of the transmission or go to Utilities, View/Print Log files. If a schedule change that must impact your next payroll processing has been made, you should download the new schedule file prior to Starting New Cycle. This will ensure that the schedule change will be captured by the software with your next transmission. The new schedule file will automatically be loaded with your transmission and update all future payrolls. If circumstances did not allow you to download the schedule file prior to Starting New Cycle, the required change must be entered as an override on the current payroll. Please call your ADP Canada Client Services group to ensure all data is entered correctly.
Management Report (MR) Schedule If you have any customized reports, you will need to verify that they are to be produced on the correct week number. If the report is produced at the end of the month and is to include specific weeks, verify that the correct weeks are included.
Speaking about your Year-end Adjustment Run A Year-end adjustment run is your opportunity to access and adjust your previous year’s Payroll financial information (quantitative amounts) and process any necessary entries before tax forms are produced.
Topics Include: • • • •
Adjustments AdjustMate for Windows Software Adjustment and Special Pays Form (ASP) ASCII File Adjustment
For more additional information about Year-end Adjustments, please contact your ADP Canada Client Services Group.
Adjustments What is an Adjustment? An Adjustment consists of adding or subtracting money from Year-to-date totals. Adjustments of this type are called quantitative adjustments because they adjust quantity or amounts. ADP Canada strongly recommends that all adjustments be submitted with your regular payroll input on or before your last payroll of the year. This will ensure that your year-to-dates are correct at the time of the Year-end closeout and all government remittances are calculated/ remitted accurately and in a timely manner Modifications or changes to indicative information, such as employee name and address, must be submitted through your normal payroll processing. A change in an employee’s profile in 2007 will also change the 2006 information of tax forms. Should it become necessary to process any quantitative adjustments after your last payroll of the year, please note that Year-end Adjustments will not generate any remittances to any Government agencies. A Year-end Adjustment run will not automatically update company level EHT quantitative values and Special Calculations will not process (Example: vacation accruals).
When to use a Payroll Entry • •
The Adjustment should have tax remittances generated. The Adjustments are required before the last payroll of the year has been processed.
When to use a Year-end Adjustment • • •
The Adjustment should have no tax remittances generated. The Adjustments are required after the last payroll of the year has been processed. To transfer balances from a previous payroll source when a company begins processing with ADP Canada during the year.
Adjustment Types: Type
Example Regular earnings, voluntary deductions…etc (most commonly used)
Accumulator 01, 23…etc., which have no Yearend requirements
Bonus payment, Bonus taxes…etc Retirement Allowances, Lump Sum taxes…etc Insurable hours, termination vacation earnings…etc, that will only impact the Record of Employment (ROE) history
Adjustment Methods • • •
AdjustMate for Windows Software for PC clients Adjustments and Special Pays Form /A.S.P. for Telephone clients ASCII Adjustment Method
AdjustMate for Windows Software ADP Canada's AdjustMate for Windows software is a product that provides an easy and convenient method for you to enter and send Year-to-date Adjustments to your current and/or previous year's totals. AdjustMate streamlines the input process by giving you the option of keying entries for one employee at a time or for several employees at once. All Clients who have access to a PC with a Windows environment, regardless of their regular payroll input method, can use AdjustMate.
Set-up Types • •
Interactive with ADP Canada PC/Payroll for Windows V4 and higher Use as standalone *(you need to key in your file numbers)
* If you are running standalone, you must add the following in Utilities menu: • Adjustment Fields • Adjustment Codes
Minimum System Requirements for AdjustMate for Windows software in it’s most recent Version 2.02 • • • • •
486/66Mhz CPU 50MB disk space 16MB RAM Win 98/2000, or NT 4.0 (or higher), 14.4 Modem
Tutorial Learning ADP Canada AdjustMate tutorial, the Computer base training (CBT) software is included with your ADP Canada AdjustMate for Windows software package. Upon completion of the tutorial you will learn how to enter adjustments using the AdjustMate software and send the data to ADP Canada.
The Topics Contained In The Tutorial Includes: • • • • • •
Enter Control Information Enter Adjustment by Grid Enter Adjustment by File numbers Create reports Send adjustments to ADP Canada Use Utilities
The ADP Canada AdjustMate for Windows Cycle To complete your adjustment transactions, simply follow the steps outlined in the AdjustMate for Windows Cycle:
Control Information Window The Control Information Window is the first window to appear after launching the AdjustMate software. This window is used to create a new adjustment, edit an existing adjustment or select special effects.
Adjustment Header You will be asked to provide adjustment header information that includes company code, adjustment year, quarter #, week and payroll number. Please note: If you are using a previous version of Adjustmate for Windows and the year you need to adjust does not appear in the drop down list, you will need to uninstall and reinstall the Adjustmate software. For further instruction about completing the header, please call your ADP Canada Client Services Group.
Week and Payroll Number It is important to enter the correct week and payroll number in the Adjustment Header section of the Control Information Window. The general rule is to use the last payroll week and payroll number processed plus one. For example, if week 52 and payroll #1 was your last payroll of the year, use week 52 payroll number 2 for your first adjustment file, 52-3 for your second one, and so on. Adjustments must be submitted in sequence. There is a limit of five (5) payroll numbers per week number. If you need more than 5 runs you will need to use the next week number Example week 53 and payroll #2-6.
Special Effects As an option, Special Effects code may be used to perform specific routines on adjustment runs. Please contact your ADP Canada Client Services Group for assistance.
Entering Adjustments There are two methods for adding adjustments: •
Adjustment Entry by Grid allows you to make adjustments for multiple employees in the same field. For Example To update taxable benefit code P (Group RRSP) for all 20 employees in department 100000.
Adjustment Entry by File Number allows you to make adjustments for a single employee at a time in different fields. For Example To update a lump sum payment paid to one employee and taxable benefit for Personal Use of Employer’s Automobile for four employees.
Print Reports and Verify Entries There are three reports available for viewing and printing. We strongly recommend printing these reports to verify your entries prior to transmitting data to ADP Canada.
Transaction List Report
A list of all employee transactions grouped by adjustment number, adjustment type, quarter and date.
Adjustment Field List
A reference of all adjustment fields supported by AdjustMate.
Company Totals Report
A summary of adjustments totaled by company code, adjustment year, quarter and file number.
Sending Adjustments to ADP Canada There are two methods for sending your data to ADP Canada: 1. Transmit the adjustment transactions to ADP Canada via modem or internet. 2. Copy the adjustment transactions to a diskette and send to ADP Canada. Before you send data to ADP Canada, be sure to review your reports to verify that all your transactions are correct.
Backing up your Database To maintain the integrity of your database, it is important that you back up the database file every time you make adjustments. You can use any backup/restore utility such as Microsoft Windows backup utility. Remember to back up files with the following extensions: *.mdb
Adjustments and Special Pays (ASP) Form If your payroll input is not provided using a Personal Computer (PC), the Adjustments and Special Pays (ASP) form may be used. The ASP form has two main sections: 1. Company information 2. Employee information.
1. Company Level Information When completing an Adjustments and Special Pays (ASP) form, there are certain required entries including: • • • • • •
Company Code Adjustment Year Quarter Company Name (your company name) Prepared By (your name) Week Number and Payroll Number: Use the last payroll week and payroll number plus one. For Example If week 52 payroll 1 was your last payroll of the year, use week 52 payroll number 2 for your first adjustment file, 52-3 for your second one, and so on. Adjustments must be submitted in sequence. There is a limit of 5 payroll numbers per payroll week number. If you require more than 4 adjustment runs, you will need to use the next week number. Example week 53 payroll #1.
2. Employee Level Information When completing an Adjustments and Special Pays (ASP) form, there are certain required entries including: • File Number Enter The 6 Digit Employee File Number • Employee Name • Adjustment Number The first adjustment for a file number is 1, the second is 2, and so on. Available adjustment numbers are 1-9 and A-Z, for a total of 35 lines per employee per adjustment file.
2. Employee Level Information, Continued •
Adjustment Type Type
Example Regular earnings, voluntary deductions…etc (most commonly used) Accumulators (misc) which have no Year-end requirements Bonus payment, Bonus taxes…etc
Retirement Allowances, Lump Sum taxes…etc
Insurable hours, termination vacation earnings…etc, that will only impact the Record of Employment (ROE) history
Description Regular Adjustment
Reversal If the entire entry is to be negative, you can simply enter a Y (for yes) in this field and all values on that line will be reversed. Alternatively, you can leave this column blank and identify which values are negative by circling them. Both methods are correct, the choice is yours - but do not combine both in one entry. Hours Enter the hours code and the amount of hours if you want to adjust the hours to update the corresponding accumulators and ROE history. Earnings Enter the regular, overtime or earnings code and amount. You must also include the total of these earnings in the Gross Pay column. The total of all the earnings must balance to the gross amount or the entry cannot be processed.
Statutory Deductions Enter the Canada/Québec Pension Plan contributions, Employment Insurance premiums, Québec Parental Insurance Plan Premiums and Federal and Provincial Tax withholdings, as applicable.
Other Deductions Enter the deduction code and the amount.
Taxable Benefits Enter the Taxable Benefit code and amount. Net Pay This is the result of Gross Pay less Statutory Deductions and Other Deductions. If you leave the Net Pay amount blank, your entries will be accepted as keyed. If you enter a Net Pay amount, the line from gross to net must balance or the entry cannot be processed. Page Total and Grand Total Enter the total of each column for the page, and for the total of the pages.
If you require further assistance in the completing the ASP form, please contact your ADP Canada Client Services Group. 28
ASCII File Adjustment The ASCII adjustment method allows you to supply ADP Canada with your adjustments in an 80-byte format on diskette or file. ADP Canada can provide the technical details your programmer requires to create the ASCII file. Please contact your ADP Canada Client Services Group to obtain a list of codes set-up for your company and the ASCII adjustment specification document.
Speaking about Year-end Preparation A Year-end Preparation will allow you to ensure employees will get accurate tax forms within tax agencies deadlines.
Components of a Year-end Preparation: • • • •
Utilizing The Master Control To Prepare For Year-end Quarterly and Annual Registers Tax Verification Letter Tax Forms Information (T4, T4A, Relevé 1, and Relevé 2)
Utilizing the Master Control to Prepare for Yearend The Master Control is a standard report produced with every payroll. It contains both employee Masterfile indicative data (name, address, Year-to-date Totals, etc.) and company level Year-to-date Totals (quantitative data). It should be reviewed regularly, and again at the end of the year in comparison to the Annual Register. Detailed below is a list of the most important sections of the Master Control that should be reviewed throughout the year in preparation for Year-end. On page 1 of your Master Control – Company Options, you will find the description of your Special Accumulators. This will help you better understand your Tax Verification Letter (TVL).
How to use the Master Control throughout the Year Verify employee information: • • • • •
Name Address Social Insurance Number Birth Date Province Tax Code.
Check employees for company specific required coding: • • • • •
Registered Pension Plan (RPP) Number Indicator Self-employed Commission Coding Pensioner Coding Status Indian Coding Status Indian Pensioner Coding.
Ensure Year-to-date amounts on your Master Control are accurate: • • •
Manual cheques are included / Pay reversals are excluded Terminated employees are set-up and their Year-to-date figures have been updated Year-to-date balances prior to processing your payroll with ADP Canada have been transferred.
If you started processing payroll with ADP Canada this year, you are responsible to supply ADP Canada with your previous system’s employees and Year-to-date Totals. If you have not done so, you will be responsible for issuing any Tax Forms for these amounts. •
Employers with more than one Business Number (BN) on the same company code should review the multi-corporation qualifiers to ensure employees are coded to the proper Business number (BN). Please note: Employees who have changed Province of Employment or BN number during the year require a T4 for each Province/BN number therefore new file numbers are required for each Province/BN.
Utilizing the Master Control to Prepare for Year-end, Continued
T4 Box 14
Y Gross Pay - by default total earnings. However, please use your Tax Verification Letter (TVL) for additional information impacting this value as some special accumulators are added (such as taxable benefits) or removed (such as Lump Sum and expense reimbursement payments). Y CPP Employee CPP Contributions
Employee QPP Contributions
Employee EI Premiums
Refer to the Tax Verification Letter (TVL) for the accumulator number(s)
Income Tax Deducted
Y Fed. Tax minus Y Fed LSum EI Insurable Earnings
Y Pen. Wages
Value not stored on Master Control CPP/QPP Pensionable Earnings
Employee PPIP Premiums
Box 56 Code 30 to 85
Employee PPIP Insurable Earnings Refer to Tax Verification Letter (TVL) for the accumulator number(s).
Lump Sum Payments
Lump Sum Payments
Lump Sum Income Tax Deducted
Y RA ELIG
Eligible Retiring Allowances
Y RA N-ELIG
Non-eligible Retiring Allowances
Y L Sum Other
Utilizing the Master Control to Prepare for Year-end, Continued
Relevé 1 Box A
Y Gross Pay - by default total earnings. However, please verify your Tax Verification Letter (TVL) for additional information impacting this value as some special accumulators are added (such as Taxable Benefits) or removed (such as Lump Sum and Expense Reimbursement Payments) Y QPP QPP Contribution
Refer to Tax Verification Letter (TVL) for the Accumulator number(s)
Y Prov. Tax minus Y QC R2 LS TX
Y Pen. Wages
Québec Income Tax Deducted QPP Pensionable Earnings QPIP Premiums
QPIP Insurable Earnings
Box I Box F, J, K, L, M, N & U W
Refer to Tax Verification Letter (TVL) for the Accumulator number(s)
Box A-C, H
Refer to Tax Verification Letter (TVL) for the Accumulator number(s)
Y QC R2 LS Tx Québec Income Tax
Other Codes appearing on the Master Control For information only, amounts may already be included in other Year-to-date fields. Y COMM Do not use these totals to arrive at the Box 42/Box M total. Use the accumulator assigned to each Commission Earning. Y CPP X
Total amount of CPP/QPP Exemption used
Y QC R1 LS TX
Lump Sum Tax (included in Y Prov Tax)
Y Tax Ben 1-9
Y Bonus Pay
Do not use these totals to add to the Y Gross to arrive at the Box 14 total. Use the accumulator assigned to each Taxable Benefit. This total is already in the Y Gross Pay Total
Y Bonus Fed
This total is already in Y Fed Tax total
Y Bonus Prov
This total is already in Y Prov total
Total of earnings not subject to any tax and not included on the tax documents. For Example, expense reimbursement.
Do not use these totals to arrive at the Box 20/Box D total. Use the accumulator assigned to each pension deduction.
Quarterly and Annual Registers In preparation for Year-end processing, ADP Canada provides a special report to assist you in pre-balancing your Tax Form information (T4, T4A, Relevé 1, and Relevé 2) prior to Year-end. This report is called an Annual Register. It is a preview of your Year-end documents. The Quarterly Register is identical in layout to the Annual Register but is generated after the end of each quarter. It is a great optional tool for prebalancing your totals throughout the year.
Benefits of: Quarterly Register Report: • •
An early reference of totals for active, inactive and terminated employees who should receive Year-end Tax Forms. An early indication if any adjustments to tax document totals is required. This will allow you to make those adjustments with your regular payroll processing prior to the Year-end and may help avoid the cost of additional adjustments processing later. An early opportunity to monitor any CPP/QPP or EI/QPIP deduction discrepancies. An early opportunity to avoid the Year-end rush: the months of December and January are the busiest time of the year for most companies with regard to payroll.
The Quarterly Register will allow you to do your pre-balancing early and eliminate cumbersome peak season activity.
Annual Register Report: The Annual Register is a Year-end Report, which allows you to verify and balance your T4, T4A, Relevé 1, and Relevé 2 Tax Forms prior to their processing. Northwest Territories (NWT), Nunavut, and Employer Health Tax (EHT) information is also provided on this report for your reconciliation. This report is automatically produced twice a year: • Early October at closeout date of September 30th • End of year, after all calendar year payrolls have been produced. Last Annual Register of the year is delivered to you in early January of the next year. You may request an additional Annual Register report, free of charge, during our Year-end in Summer Campaign (June).
Quarterly and Annual Registers, Continued Report Layout The Register is made up of six possible segments: 1. ERROR/CREDIT Employee Information (see below) 2. T4 and T4A information 3. Relevé 1 and Relevé 2 information 4. Northwest Territories (NWT) 5. Nunavut information 6. Employer Health Tax (EHT) information
ERROR/CREDIT Employee Information The ERROR/CREDIT Employee information segment is only produced when an employee’s information contains an ERROR or CREDIT. An Error message will help you determining the action to be taken to resolve the situation. Employees who are listed in this section will not receive a Tax Form due to one or more of the following conditions: • A negative amount in one or more tax fields • A non Québec, non NWT/Nunavut employee has an amount for Provincial Tax • Employee’s name is missing or invalid on the ADP Canada’s Masterfile • Relevé 2 with the Provenance des Revenus code field blank • Employee is coded with EI and/ or PPIP blocked but has EI / PPIP YTD amount • Employee has no reportable amounts • Employee has CPP/QPP deductions but no CPP/QPP earnings • Employee is coded as a Pensioner, Indian Pensioner or Self-Employed but has amounts in Box 14, 30, 71 or 77 of T4 and amounts in Box A,H or R on the Relevé 1 . • Employee (Québec) has missing Social Insurance Number • Employee has Union/Charity deductions but has no income • Employee ( non Québec) has Québec only taxable benefit or QPIP reportable amounts • Employee has missing or invalid corporation / group qualifier ( regardless of reportable amounts) • Company’s Business Number, Québec employer Number and/or employer name and/or address is missing
Quarterly and Annual Registers, Continued Warning Messages Warning Messages appearing on the T4/T4A and Relevé 1/ Relevé 2 reports will not prevent the creation of a Tax Form. However, these messages should be investigated and if necessary adjusted on a subsequent payroll or on a Year-end Adjustment Run. Possible Warning Messages that may be generated for an employee are as follows: • Invalid Social Insurance Number ( non-Québec employee) • EE has an invalid birth date • EE age < 18 but has C/QPP YTD • EE is missing a birth date • EE age > 70 but has CPP YTD • EI/PPIP deductions but no EI/PPIP insurable earnings • EI/PPIP exempt employee with EI/PPIP insurable earnings. • Québec Tips Employee without Tips amount i.e. Box S + T =0.00
Using the Quarterly or Annual Register to Prepare for Year-end When checking and balancing your Quarterly or Annual Register, you will also need the Master Control. Use both the Master Control and Quarterly or Annual Register to: a)
Verify The Following Information: • Employees Social Insurance Number. • Employees Birth Date. • Employee names and addresses to ensure they are correct and current. • That all manual cheques and/or pay reversals have been updated to the Master Control. • Employees Province Tax Code (Employees who have moved from one province to another during the year must have a unique file number for each province in which they worked with corresponding earnings for each province).
Employers with more than one Business Number (BN) should review their multi-corporation qualifiers (usually Data Control coding) to ensure employees are coded to the proper taxation account number. Qualifiers are displayed on your Tax Verification Letter (TVL) per Business Number.
Employers who require Registered Pension Plan (RPP) numbers to print on Year-end documents should review the Personnel Information section of the Master Control to ensure that employees have the proper coding of "Pension Plan Code." Company level plan numbers are displayed on your Tax Verification Letter (TVL) per Business Number.
Social Insurance Numbers By law, an employee must supply their valid Social Insurance Number (SIN) to their employer within three days of employment. Employers are required to make a reasonable effort to obtain a Social Insurance Number from every employee. Failure to do so could results in Canada Revenue Agency (CRA) and/or Ministère du Revenu du Québec (MRQ) assessing the employer with a penalty. Permanent Social Insurance Numbers should be assigned to employees prior to your last payroll of the year. Temporary Social Insurance Numbers will prevent the printing of the Relevé 1 and Relevé 2 for Québec employees. Any changes or modifications should be made with your normal payroll input prior to your last payroll of the year.
Tax Verification Letter Tax Verification Letter (TVL) explains your specific company requirements for Year-end reporting. It is critical that all information displayed on the Tax Verification Letter is verified to ensure that your Year-end documents will be accurate.
How to Verify your Tax Verification Letter Your Tax Verification Letter is separated into two sections consisting of; 1. General Information 2. Special Conditions; or Company Specific Requirements for your Year-end Reports Please read the following information carefully. After reviewing your TVL, if you should require changes, please write the changes directly on the TVL, sign it, and return the form to your ADP Canada Client Services Group. Be sure to keep a copy of your changes for your records.
1. General Information The General Information section of the TVL consists of the following controls. Be sure to verify their accuracy and completeness: • • • • •
Company Code Last Pay Date, Period Ending Date and Week Number of the year Company Business Number Company Charity Registration number (no longer required to print on Tax Forms) Company name and address as it should appear on all Year-end documents. Only the first line of the company name will be displayed on the T4s, T4As, Relevé 1s, and Relevé 2s Tax Forms.
Multiple Corporations •
If your company is set-up with more than one corporation, because you have more than one Business Number (BN), you will receive an additional page for each Business Number (BN).
If you have these additional pages, please verify all the information is correct for each additional corporation: i) ii) iii) iv)
Corporation Name and Address Qualifying conditions that determine which employees belong in that corporation Corporation Pension Number Corporation Charity Number.
Tax Verification Letter, Continued 2. Special Conditions If you have any of the following reporting requirements in your company, they should be indicated on your Tax Verification Letter per Business Number: •
Pensioners or Self-employed Commissioned Employees If your company is set up with the Pensioner and/or Self-employed Commission routines, it will be indicated here. The routine causes all earnings for the Pensioners and Self-employed Commissioners to print on T4As, and Relevé 1s, or Relevé 2s (as required).
Status Indians or Status Indian Pensioners If your company is set up with Status Indian and/or Status Indian Pensioner routines, it will be indicated here.
Special Accumulators If a Special Accumulator will be reported in a specific box on T4s, T4As, Relevé 1s, or Relevé 2s, it will be indicated here. Special Accumulators that are not printed on the TVL, do not affect your Year-end Tax Forms. If a regular employee requires a Special Accumulator to be added or subtracted from a Box on the Year-end Tax Form, and it is not displayed, please make a note of the missing information on the TVL.
Pension Plan Numbers If you have a company RPP or DPSP and the contributions must be reported on the Year-end Document, then the seven-digit numeric Registration Pension Plan (RPP) or Deferred Pension Savings Plan (DPSP) Number(s) will appear on your Tax Verification Letter. The number will be printed on the T4 Tax Form in Box 50 (Pension Plan or DPSP Registration Number). In order for these RPP/DPSP numbers to be displayed on the T4, T4A, Relevé 1, or Relevé 2 Tax Forms, the following must occur: i) ii)
• • •
The employees must be coded with the RPP Indicator, and The employees must have values in Box 20 (RPP Contribution) and/or Box 52 (Pension Adjustment) of the T4 Tax Form.
To verify if the employee level indicator is coded correctly, refer to the Pension Plan Code listed in the Personnel Information column of your Master Control. Employment Insurance (EI) Rate Northwest Territories/Nunavut Taxation Number (if applicable) Revenu Québec Taxation Number (if applicable)
3. Other Company Specific Requirements for Your Year-end Reports: Sorting Options for Year-end Reports •
NAME SEQUENCE i.e. Alphabetically, by Employee Surname is the default sorting sequence for T4s, T4As, Relevé 1s, and Relevé 2s. If you have requested that your Year-end documents be sorted differently (i.e. by File Number, Within Department; Alphabetical, Within Department), this should be reflected on your TVL.
Tax Form Filing Option Column •
The Tax Form Filing Option column indicates if your Tax Forms will be produced for PAPER or DIRECT Reporting.
Optional Year-end Report •
The Annual CPP/QPP and EI/PPIP Employee Contribution Assessment report is an optional and billable report to verify possible discrepencies in regards to CPP/QPP/EI and PPIP before end of fiscal year. Please refer to the Year-end pricing guide for this report’s cost.
Please note: Sorting Sequence and Filing Option must be consistent for all tax forms produced for your company.
Tax Forms Information T4 Tax Form Box Descriptions Box 10: Province of Employment Province of Employment for wages reported on the Tax Form.
Box 12: Social Insurance Number (SIN) Permanent numbers must be assigned prior to your last payroll of the year.
Box 14: Employment Income Total earnings before deductions, includes Commissions and Taxable Benefits.
Box 16: Employee’s CPP Contributions Canada Pension Plan deduction for employee outside of Québec No CPP deduction for employees under age 18 or over 70 or if employee is collecting CPP and is required to stop CPP deductions.
Box 17: Employee’s QPP Contributions Québec Pension Plan deduction for employees in Québec. No QPP deduction for employees under age 18 or if the employee is not accumulating Pensionable Earnings.
Box 18: Employee’s EI Premiums Employment Insurance deduction for employee.
Box 20: Registered Pension Plan Contribution Amount of employee contribution to a Registered Pension Plan (RPP).
Box 22: Income Tax Deduction Total Federal Tax and Provincial (except Québec) and Territorial taxes deducted, less any taxes for Lump Sum payments.
Box 24: EI Insurable Earnings Amount used to calculate EI deductions. Should not exceed Box 14 unless a Deferred salary leave was paid to employee and EI was deducted. A Status Indian employee could also cause Box 24 to exceed Box 14. Box 24 should be blank if the amount is the same as Box 14, or if it is over the annual maximum Insurable Earnings.
Box 26: CPP/QPP Pensionable Earnings This box is blank if the amount is equal to Box 14 or equal to or exceeding the current year’s annual maximum Pensionable Earnings.
Box 28: Exempt CPP/QPP, EI and/or PPIP ‘X’ is printed on the CPP/QPP box if employee was exempt from CPP/QPP or they were blocked for the entire year. ‘X’, is printed on the EI box if employee was exempt from EI or they were blocked for the entire year. ‘X’, is printed on the PPIP box if employee was exempt from PPIP or they were blocked for the entire year.
Tax Forms Information, Continued T4 Tax Form Box Descriptions Box 29: Employment Code Default for this box is blank. Appropriate code required in certain situations: 11 Placement Agency – self-employed 12 Driver of taxi or other passenger carrying vehicle 13 Barber or hairdresser 14 Withdrawal from a prescribed salary deferral arrangement plan. 15 Seasonal Agricultural Workers Program 16 Detached Employee – Social Security Agreement 17 Fishers-Self employed
Box 44: Union Dues (optional) Total of all union dues deducted if the company and the union agree that the union will not issue receipts for the amount of the union dues deducted.
Box 46: Charitable Donations (optional) Total registered Canadian Charity Donations deducted if the charity will not be issuing a receipt for the amount of charitable donations.
Box 50: Pension Plan or DPSP Registration Number Seven-digit numeric RPP or DPSP Registration Number. Must be printed for both contributory and non-contributory members of your plan.
Box 52: Pension Adjustments Amount of employee’s Pension Adjustment for the year if you have RPP or a DPSP. Special calculation rules apply. Contact your company pension plan administrator for the amount that should print in this box for your plan.
Box 54: Business Number 15 digit Business Number (BN) used to remit employee’s deductions. BN number only appears on Copy 1 of the T4 Form.
Box 55: Employee’s PPIP Amount of employee’s Premiums for Provincial Parental Insurance Program.
Box 56: Employee’s PPIP insurable earnings Amount of employee’s insurable earnings for Provincial Parental Insurance program. Amount used to calculate Employee’s PPIP Premiums.
Tax Forms Information, Continued T4 Tax Form Box Descriptions Code 30:Housing, Board and Lodging Employer provided free or subsidized Housing, Meals or Board, and Lodging. Amount is also included in Box 14.
Code 31:Special Work Site Employee received benefit for board and lodging at a Special Work Site in a prescribed zone. Amount is not included in Box 14.
Code 32:Travel In A Prescribed Zone Amount of travel assistance provided for employee living in a Prescribed Zone. Amount is also included in Box 14.
Code 33:Medical Travel Amount of Medical Travel assistance provided for employee living in a prescribed zone. Amount is also included in Box 14.
Code 34:Personal Use of Employer’s Automobile Amount of benefit provided an employee for the use of Employer’s Automobile. Amount is also included in Box 14.
Code 36:Interest-Free and Low Interest Loans Amount of benefit for the Interest on a Free or Low Interest Loan. Amount is also included in Box 14.
Code 37:Employee Home-Relocation Loan deducion Deductible portion of the amount reported in Box 36.
Code 38:Security options Benefits Amount of Taxable Benefit under a corporation’s agreement to issue shares to employee. Amount is also included in Box 14.
Code 39:Security options Deduction – 110(1)(d) Amount employee is entitled to deduct under paragraph 110(1)(d) of the Income Tax Act. Amount equal to one-half (50%) of the amount reported under Box 38 for those shares.
Code 40:Other Taxable Allowances And Benefits Other Taxable benefits. Amount is also included in Box 14.
Code 41:Security options Deduction – 110(1)(d.1) Amount employee is entitled to deduct under paragraph 110(1)(d.1) of the Income Tax Act. Amount equal one-half (50%) of the amount reported under Box 38 for those shares.
Code 42:Employment Commissions Total of all Commission Earnings. Amount is also included in Box 14.
Tax Forms Information, Continued T4 Tax Form Box Descriptions Code 43:Canadian forces personnel and police deduction Deduction from taxable income can be claimed for the amount of employment earnings (including taxable allowance) of Canadian forces personnel and police who are deployed outside Canada. Code 53: Deferred security options benefits Deferred taxable benefit until disposition of the eligible securities. This amount is not included in Box 14.
Code 70:Municipal Officers Reasonable Expenses Amount not to exceed 1/3 of total salary and allowances. Amount is not in Box 14.
Code 71:Status Indian Employee The amount of tax-exempt income paid to a Status Indian employee. Employee level coding is required in the 4th position of Data Control.
Code 72:Section 122.3 Income Employment Outside Canada Qualified earnings, allowances, benefits paid to a resident of Canada working outside of Canada (refer to Box 73).
Code 73:Number of Days Outside of Canada Number of days employee worked outside Canada.
Code 74:Pre-1990 Past Service Contributions While a Contributor Employee Contributions to a Registered Pension Plan (RPP) for past service, while a contributor.
Code 75:Pre-1990 Past Service Contributions While Not a Contributor Employee Contribution to a Registered Pension Plan (RPP) for Past Service, while not a contributor.
Code 77:Workers’ Compensation Repaid To the Employer The Workers’ Compensation Benefits repaid to the employer which have been previously included in the employee’s salary.
Code 78:Fishers-Gross earnings Amount paid or payable to the fisher from the proceed of a catch.
Tax Forms Information, Continued T4 Tax Form Box Descriptions Code 79:Fishers-Net partnership amount Amount reported in Code 78 minus the total amount paid in Code 80 multiplied by the partnership agreement allocation.
Code 80:Fishers-Shareperson amount Amount paid or payable to the fisher from the proceeds of a catch based on the sharing arrangement agreed to prior to embarking on the fishing trip.
Code 81: Placement or employment agency workers gross earnings Enter the gross wages for these types of workers
Code 82: Drivers of taxis & other passenger carrying vehicle Enter the earnings that relate to these workers.
Code 83: Barbers and Hairdressers Enter the earnings that relate to these workers.
Code 84: Public transit passes Enter the total amounts that the employee/employer has paid through payroll.
Code 85: Employee paid premiums for private health This field is optional and should only be used if employee is claiming premiums paid to Private health plan.
Tax Forms Information, Continued T4A Tax Box Descriptions Box 12: Social Insurance Number Employee’s SIN Permanent numbers must be assigned prior to your last payroll of the year.
Box 16: Pension or Superannuation Taxable part of annuity payment paid to an employee or retired employee under a Superannuation or Pension fund. Employee level coding is required in the 4th position of Data Control.
Box 18: Lump Sum Payments Other Lump Sum Payments not included in Boxes 16, 20, 26, 27, or 28.
Box 20: Self-employed Commissions Total earnings for a Self-employed agent. Employee level coding is required in the 4 the position of Data Control.
Box 22: Income Tax Deducted Total Federal Income Tax deducted pertaining to Lump Sum Payments.
Box 24: Annuities Amount of Annuity payments under an income-averaging annuity contract, life annuity or deferred profit sharing annuity.
Box 26: Eligible Retirement Allowance Retirement Allowance including severance pay, is eligible for transfer to an RPP/RRSP.
Box 27: Non-Eligible Retirement Allowance Retirement Allowance including severance pay not eligible for transfer to an RPP/RRSP.
Box 28: Other income Other Lump Sum Payments.
Box 30: Patronage allocations Cash or equivalent given to customers for their patronage.
Box 32: Registered Pension Plan Contributions (Past Service) Contributions made by a former employee to buy Past Service.
Box 34: Pension Adjustment Amount of employee’s Pension Adjustment (PA) during period of leave or reduced service. Special calculation rules apply. Contact your company pension plan administrator for amount that should print in this box for your plan. Employees should not be receiving a T4 Tax Form.
Tax Forms Information, Continued T4A Tax Box Descriptions Box 36: Pension Plan or DPSP Registration Number Seven-digit numeric RPP or DPSP Registration Number. Must be printed for both contributory and non-contributory members of your plan.
Box 38: Footnote Codes Enter the appropriate footnote code. If you have more than one code enter code 13; 00 No Footnote code 02 Transfer of Funds, paragraph 60(j) use this code to describe a transfer amount in Box 18 04 Research Grant-Box 28 only 05 Scholarships, Bursaries or Fellowship-Box 28 only 06 Death Benefits-Box 28 only 07 Income From Wages-Loss Replacement Plan-Box 28 only 08 RPP or DPSP Not Eligible For Transfer use this code to describe amount in Box 18 09 Unregistered plan use this code to describe amount in Box 16 or Box 18 13 Multiple footnotes 14 Status Indians With Exempt Income use this code to describe amounts shown in Boxes 16, 18, 26, 28 15 Installment or Annuity Payments under a DPSP- Box 24 only 16 Medical Travel-Box 28 only 17 Loan Benefit (under subsection 80.4(2))-Box 28 only 18 Medical Premium benefit-Box 28 only 19 Group Term Life Insurance Benefit Paid to Former Employee 22 RESP Accumulated Income Payments Paid to Someone Other than the Subscriber or Subscriber’s spouse-Box 40 only 23 Payments From a Revoked DPSP-Box 28 only 24 Board and lodging benefits-Box 28 only 25 Disability benefits paid out of a superannuation or pension planBox 28 only 26 Pre-1990 RPP Past Service contributions-Box 32 only
Tax Forms Information, Continued T4A Tax Box Descriptions Box 40: RESP Accumulated Income Payments Total RESP Accumulated Income Payments.
Box 42: RESP Educational Assistance Payments Total RESP Educational Assistance Payments.
Box 46: Charitable Donations Total registered Canadian Charity Donations.
Box 61: Business Number 15 digits Business Number (BN) used to remit employee’s deductions. The BN will only appear on Copy 1 of the T4A Forms.
Tax Forms Information, Continued Relevé 1 Tax Form Box Descriptions Box A:Employment Income before source deductions Total earnings before deductions include Commissions and Taxable Benefits.
Box B:Contributions to the Québec Pension Plan (QPP) Québec Pension Plan Deductions for employee. A QPP Deduction should not be made for an employee under the age of 18, or if an employee is not accumulating Pensionable Earnings.
Box C:Employment Insurance premiums Employment Insurance Deduction for employee.
Box D:Contributions to a Registered Pension Plan (RPP) Amount of Employee Contribution to a Registered Pension Plan (RPP).
Box E:Québec Income Tax Withheld at Source Total Québec Tax deducted less any taxes for Lump Sum Payments reported on a Relevé 2.
Box F:Union dues Total of all Union Dues deducted if you have asked ADP Canada to print them on your Tax Forms.
Box G:Pensionable Earnings under Québec Pension Plan (QPP) This box is blank if the amount is equal to Box A or equal to or exceeding the current year’s annual maximum Pensionable Earnings.
Box H:Québec Parental Insurance Program Premiums Amount of employee’s QPIP Premiums.
Box I:Québec Parental Insurance Program insurable earnings Amount of employee’s QPIP insurable earnings. Amount used to calculate QPIP Premiums.
Box J:Contributions Paid by Employer Under Private Health Services Plan Amount paid to private Health Services Plan on behalf of an employee. Also included in Box A.
Box K:Trips Made by a Resident of a Designated Remote Area Amount of travel assistance provided for employee living in a Designated Remote Area. Also included in Box A.
Tax Forms Information, Continued Relevé 1 Tax Form Box Descriptions Box L:Other Benefits Other Taxable Benefit amounts. Also included in Box A.
Box M:Commissions Total of all Commission earnings. Also included in Box A.
Box N:Charitable Donations The amount of Charity Deductions, if you have asked ADP Canada to print them on your Tax Forms.
Box O:Other Income The amount of Other Taxable Income not included in Box A .
Box P:Contributions to a Multi-Employer Insurance Plan The Taxable Benefit representing the amount paid to an administrator of a Multi-Employer Insurance Plan in relation to the coverage received by the employee.
Box Q:Deferred Salary or Wages The payment made for the employee to a custodian or trustee under an Employee Benefit Plan, Profit-Sharing Plan or Employee Trust.
Box R:Tax-Exempt Income Paid to an Indian The amount of Tax-Exempt Income Paid to a Status Indian.
Box S:Tips Received Total amount of Tips employer added to the employee’s regular salary. Amount is already included in Box A.
Box T:Tips Allocated by the Employer Total amount of Tips employer allocated to the employee because the amount of tips the employee reported was less than 8% of sales subject to tips. Amount is already included in Box A.
Box U:Phased Retirement Amount deemed to be income received from Pensionable employment under a Phased Retirement agreement that bears the approval of the Régie des rentes du Québec.
Tax Forms Information, Continued Relevé 1 Tax Form Box Descriptions Box V:Meals and Accommodations Amount granted to employees for Meals and Accommodation. Also included in Box A.
Box W:Use of a Motor Vehicle for Personal Purposes Amount of benefit from use of a motor vehicle for personal purposes. Also included in Box A.
Codes used in Box O RA RB
Payments Received Under a Supplementary Unemployment Benefits Plan Scholarship, Bursaries, Fellowship And Prizes
Fees For Service Rendered
Benefits Paid Under The Labour Adjustment Benefits Act
Labour Adjustment Benefits For Older Workers and Compensatory Income Payments Made Under The Plant Workers Adjustment Program and The Northern Cod Compensation and Adjustment Program
Commissions Paid To a Self-Employed Worker
Benefits Paid Under a Wage Loss Insurance Plan
Benefits Received By a Shareholder
Benefits Received By a Partner
Amounts Allocated Under a Retirement Compensation
Payments For Services Rendered In Québec By a Person Not Resident In Canada Employment Assistance Allowance
Other Indemnities Paid By The Employer
Amounts Paid To The Beneficiary Under a Registered Education Savings Plan (RESP)
Amounts Paid To a Subscriber Under a Registered Education Savings Plan (RESP)
Action employ program
Please note: If various types of income are included in Box O, use the code RZ. In the centre of the RL slip, write each type of income and the amount applicable to each of them. Add it to your profile before your company’s Tax Forms are produced.
Tax Forms Information
Relevé 2 Tax Form Box Descriptions Provenance des Revenus Code Print abbreviation to indicate source of earnings.
Box A:Life Annuity Payments Life annuity payments made under a registered or unregistered Pension Plan.
Box B:Benefits under a RRSP/RRIF/DPSP and Annuities Benefits Payments from RRSP/ RRIF/ DPSP Annuities.
Box C:Other Payments Total Lump Sum Payments made under an income averaging annuity contract, a RPP/ DPSP, or an unregistered plan. Amount is not included in Box A on the Relevé 1.
Box D:RRSP Refund Premiums Amount of RRSP Premium refund made to a surviving Spouse.
Box E:Benefit Deemed to have been Received at Time of Death (RRSP/RRIF)
Value of property in an RRSP/RRIF at the time of death.
Box F:Refund of Undeducted RRSP Contributions Amount of refunded excess RRSP Contributions made in a given year.
Box G:Amount that is Taxable Because of the Revocation of Registration of an RRSP/RRIF Value of the property in an RRSP/RRIF prior to plan amendment.
Box H:Other Income (RRSP/RRIF) Other income from an RRSP/RRIF.
Box I:Amount Giving Entitlement to a Deduction (RRSP/RRIF) Amount to be deducted from income of annuitant of a trusted RRSP/RRIF Box J Québec income tax deducted Total Québec tax deducted for Lump Sum Payments. Amount is not included in Box E on the Relevé 1.
Tax Forms Information, Continued Relevé 2 Tax Form Box Descriptions Box J:Québec Income Tax Deducted Amount of Québec Income Tax Deducted on Relevé 2 reported income.
Box K:Income Earned after Death (RRSP/RRIF) Amount paid to the beneficiary of an RRSP/RRIF.
Box L&O: Withdrawal Under Lifelong Learning Plan (LLP) Amount paid to annuitant of an RRSP. Amounts in excess of $10,000 to be reported in Box C.
Box M:Tax Paid Amounts Amount of Tax-Paid Amounts paid to the beneficiary of an RRSP/RRIF.
Box N:Contributor Spouse SIN.
Above box N:
Contributor Spouse Name
Contributor spouse name (RRSP or RRIF).
Provenance des revenus Code Abbreviations FERR-A
Insured Registered Retirement Income Fund
Depositary Registered Retirement Income Fund
Trusteed Registered Retirement Income Fund
Home Buyers Plan
Lifelong Learning Plan
Insured Registered Retirement Savings Plan
Depositary Registered Retirement Savings Plan
Trusteed Registered Retirement Savings Plan
Registered Pension Plan
Deferred Profit-Sharing Plan
Unregistered Pension Plan
Québec Pension Plan
Canada Pension Plan