Setting Up a Provincial Payroll Tax

To set up a provincial payroll tax, except for Quebec, use the following steps.

Create a provincial tax payroll calculation in 5-3-1 Payroll Calculationsusing tax type 7-Provincial Income Tax. For more information, see Setting up payroll calculations.

Open 5-2-1 Employees, and then select an employee using the data control.

Click the [Calculations] tab.

In the Province Tax calculation row, do the following:

In the TD1 Claim Code column, enter the claim code that corresponds to the claim amount on the employee's TD1 form.

In the Other Tax Credits column, enter any annual provincial non-refundable tax credits requested by the employee. This is where medical expenses or charitable donations authorized by a tax services office or tax centre should be entered.

(Optional) If the employee has disabled dependents and works in the Ontario province, enter the number of disabled dependents from the TD1ON form in the Disabled Dependents column.

Select File > Save.

Tip:

If you are required by a province where you do business to file an Employer Health Tax (EHT) return, Sage 100 Contractor can track your EHT contributions and produce a report that lists the taxable gross, computed EHT, and EHT liability for each employee, to help you complete the return. Before you can run the 5-1-4-41 Employer Health Tax report, however, you need to set up a payroll calculation for Employer Health Tax, and assign it to employee records.

There is no dedicated tax type for Employer Health Tax, but you can use Tax Type = None.

More resources

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