To determine if a benefit or deduction is subject to taxes or withholding, please refer to the Canada Revenue Agency guide.
To setup this custom benefit, follow these steps:
A. Go to Settings.
B. Select Pay Rules.
C. Click Benefits.
D. Click Add New Rule.
E. Add your New Rule Name.
F. Enter a description for your reference.
G. Check Enabled to have the rule run in every pay run.
H. Select the check boxes for CPP, EI, Federal, Provincial, Occasional Earnings, and Vacationable.
- CPP - Subject to CPP calculations.
- EI - Not subject to EI calculations (For non-cash taxable benefits).
- Fed - Subject to federal taxes.
- Prov - Subject to provincial/territorial taxes.
- Non-Cash - check this box if this is a non-cash benefit.
- Vacationable - Subject to vacation calculation amounts.
I. Click Save.
J. Review the new rule.
Adding to Employees
K. Once the rule has been created go to Employees.
L. Select the ellipses on the top right menu bar.
M. Click Profile.
N. Click Payroll.
O. Choose View Benefits.
P. Click Add Benefits.
Q. Enter the Rule Name, Unit, and Per Pay Amount.
R. Click Continue.
Custom Deductions
S. Go to Settings.
T. Select Pay Rules.
U. Click Deductions.
V. Click Add New Rule.
W. Enter New Rule Name, Description, and GL Code.
X. Check Enabled to have the rule run in every pay run.
Y. Select the check boxes for CPP, EI, Federal, Provincial, Occasional Earnings, and Vacationable.
- Reduce Pensionable - Reduces CPP calculation by deduction amount.
- Reduce Insurable - Reduces EI calculation by deduction amount.
- Reduce Tax - Reduces Income Tax calculation by deduction amount.
- Non-Cash - No money deducted from the employee.
Z. Click Save.
These are just some examples of how to use our payroll rules to define custom benefits and deductions for your employees. If you have questions about the tax implications of various benefits and deductions, please consult your tax advisor or accountant or one of our Payroll Specialists.