CA - Need Canada wage type "taxable but not taxed"

[Former Member]

Hi everyone,

I need to configure a Canadian wage type which would be like the US "taxable but not taxed" wage types. It would increase the taxable wage accumulators (income tax, CPP, and EI), calculate employer taxes (CPP and EI), and pay the full amount to the employee without deducting the taxes pertaining to the wage type amount. I can't think of any way to do this which would both calculate ER taxes and not calculate EE taxes. We are currently using a gross up wage type for this, but the company does not want to continue to cover the extra taxes on behalf of the employee.

Any help would be appreciated.

Thanks,

Sharon

[former_member182083 · Accepted solution]

Hello Sharon,

You dont have this option in Payroll Canada as you have in Payroll US. The only option is Gross up which you are already using it. which is the correct way for your scenario in Payroll canada.

With Regards,

S.Karthik

[former_member193210]

As mentioned by S Karthik, that is probably not a legal option in Canada.

To achieve your goal, you would probably have to give a net payment to the employee and make year-end adjustments to /102, /103, /120 and /122, but I would not recommended it.