Calculating a deduction by hand, discovering at year-end that an employee has contributed beyond the maximum, or producing a T4 without being able to explain the calculation to an employee who disputes it: what comes up every pay run and every year-end for an employer in Canada. This application installs on top of the free Record of Employment base and adds deductions, year-end slips and workers' compensation premiums.
Who the application is for
For employers in Canada who already calculate their Record of Employment with the free application, and also want to calculate source deductions period by period, produce the T4 and, in Quebec, the RL-1, as well as CNESST or WSIB premiums.
What the application does
- Calculates source deductions period by period — CPP or QPP, federal or Quebec employment insurance, QPIP, federal and provincial tax — with the full detail of each calculation.
- Keeps the annual contribution total to prevent contributing beyond the maximum in force.
- Produces the T4 and the T4 Summary, with their deadline, and refuses to validate them if an employee's contributions are inconsistent with their salary or if a slip remains in draft.
- Produces Quebec's RL-1 slip, refusing it for an employee whose year's payroll belongs to a province other than Quebec.
- Calculates CNESST and WSIB premiums from dated classification units and rate tables, and refuses the calculation without a notified rate in force for the year.
Day to day
- As soon as it is installed, enter each employee's federal basic personal amount from their TD1 form: without it, no deduction is calculated.
- For each pay period, calculate the deductions: the full calculation detail remains available per contribution.
- Monitor the annual total to spot an approach to the maximum before it becomes an overpayment.
- At year-end, produce each employee's T4, then the T4 Summary once every slip has been validated.
- For an employee under Quebec, also produce the RL-1, and calculate the applicable CNESST or WSIB premium according to the province.
What the application does not do
- It does not supply the federal basic personal amount: it varies with each employee's income since 2020 and must be entered from their TD1 form.
- It does not supply the CNESST or WSIB rates specific to your business, nor Quebec's provincial tax scale: these values are specific to each file and remain to be entered. It also does not implement Ontario's tax reduction or health premium, which overstates the provincial tax calculated for a low-income employee in that province.
- It only handles workers' compensation premiums for Quebec and Ontario: other provinces' boards are not covered.
- It does not depend on any full payroll-slip application and does not submit anything to tax authorities or workers' compensation boards.
- It does not replace the advice of a Canadian payroll professional or the Canada Revenue Agency: rate tables, rates and personal amounts change every year, and it is for you to check them.
Getting started
Install this application on top of the free Record of Employment base, then immediately enter each employee's federal basic personal amount from their TD1 form. Then complete Quebec's provincial tax scale and the CNESST or WSIB rates specific to your business before any first calculation.
Going further
To find out whether this application suits your business and how to activate it, compare the plans or write to us.