Recording One-Time Tax Deductions

Page Name

Definition Name

Usage

By Paysheet - One-Time Taxes Page

PAY_SHEET_ADD_O

Review one-time tax considerations for a single employee, override an existing tax, increase an existing tax, and refund a tax amount.

By Payline - One-Time Taxes Page

PAY_SHEET_LINE_O

Review one-time tax considerations for a single employee, override an existing tax, increase an existing tax, and refund a tax amount.

By Payline Security - One-Time Taxes Page

PAY_SHEET_LN_O

Review one-time tax considerations for a single employee, override an existing tax, increase an existing tax, and refund a tax amount.

The system computes regular taxes based on tax data at the company level and the employee level. To make a permanent change to tax data, use the appropriate tax page, depending on which data you change.

While each One-Time Tax record corresponds to a Pay Earnings record, the one-time deduction is based on all the pay earnings that are associated with the employee, unless you pay the pay earnings on a separate check. In this case, the one-time deduction that is associated with the pay earnings affects only the pay earnings on that separate check.

To make a one-time tax for the same tax apply to only one pay earnings, pay the pay earnings on a separate check. If you enter more than one one-time tax for the same tax on multiple pay earnings, but don't enter separate check information, the system produces an error message during the Pay Calculation process.

Use the By Paysheet - One-Time Taxes page (PAY_SHEET_ADD_O) to review one-time tax considerations for a single employee, override an existing tax, increase an existing tax, and refund a tax amount.

Navigation:

  • Payroll for North America > Payroll Processing USA > Update Paysheets > By Paysheet > One-Time Taxes

  • Payroll for North America > Payroll Processing CAN > Update Paysheets > By Paysheet > One-Time Taxes

  • Payroll for North America > Payroll Processing USF > Update Paysheets > By Paysheets > One-Time Taxes

This example illustrates the fields and controls on the By Paysheet - One-Time Taxes page.

One-Time Taxes page

Taxes

Field or Control

Description

Additional Taxes

This check box determines whether the system takes, on an individual check, the additional withholding specified on the Federal Tax Data 1 page, State Tax Data 1 page, and the Canadian Income Tax Data pages.

By default, this check box is selected. If you do not want to take the employee's regular additional taxes out of a check, deselect this check box.

The system ignores this check box in the following situations:

  • The one-time code is Override.

  • The Maintain Taxable Gross option on the employee Tax Data page is selected.

One-Time Tax Data Override

Field or Control

Description

(CAN) Canadian Tax Type

Select from the available values:

  • Canada Pension Plan: Employee's Canada Pension Plan contributions.

  • Canadian Bonus Tax: Income taxes specific to the Bonus tax method.

  • Canadian Income Tax (T4): Income taxes to be reported on the year-end slip T4.

  • Canadian Income Tax (T4A): Income taxes to be reported on the year-end slip T4A.

  • Canadian Pension Plan - ER: Employer's Canada Pension Plan contributions.

  • Employee EI Premium: Employee's employment insurance premium.

  • Employer EI Premium: Employer's employment insurance premium.

  • Health Tax: Provincial health taxes paid by the employer.

  • Payroll Tax: Territorial payroll taxes paid by the employee.

  • Quebec Bonus Tax: Income taxes specific to the Bonus tax method for employees taxed in Quebec.

  • Quebec Income Tax: Provincial income taxes to be reported on the year-end slip RL-1.

  • Quebec Income Tax (RL-2): Provincial income taxes to be reported on the year-end slip RL-2.

  • Quebec Parental Insurance - EE: Employee's Quebec Parental Insurance Plan premium.

  • Quebec Parental Insurance - ER: Employer's Quebec Parental Insurance Plan premium.

  • Quebec Pension Plan: Employee's Quebec Pension Plan contributions.

  • Quebec Pension Plan - ER: Employer's Quebec Pension Plan contributions.

  • Take No CPP/QPP Exemption: Pay period exemption amounts relative to the Canada or Quebec Pension Plan taxable grosses apply but should only be taken into account once per pay period. Select this value to enable the exemption amount to be bypassed in determining the CPP/QPP taxable gross.

One-Time Code and One-Time Tax Amount

Select from the following one-time codes:

  • Addition: Select this value to add the amount specified on this page to the regular calculation. You cannot use this value if the system did not take normal taxes. If the system did not take normal taxes, it does not take the additional amount that you enter here.

  • Override: Select this value to ignore the regular calculation and replace it with the amount specified on this page. Entering 0 (or leaving the One-Time Tax Amount field blank) is a valid override amount.

  • Refund: Select this value to calculate the taxes normally and then apply the refund amount. For example, if the normal tax is 100 CAD and you entered a one-time tax refund of 75 CAD, the resulting tax amount is 25 CAD. You cannot use this value if the system did not take normal taxes. If the system did not take normal taxes, it does not refund the amount you enter here.

Note: Arrears Payback is not a valid option for one-time tax overrides.

PA EIT Work PSD Code and PA EIT Residence PSD Code(Pennsylvania Earned Income Tax work Political Subdivision code, and Pennsylvania Earned Income Tax residence Political Subdivision code)

(These fields appear only when the state is Pennsylvania.) Under PA Act 32, you must identify the PSD code of the employee's work locality and residence locality for each Pennsylvania local Earned Income Tax (EIT) amount withheld from an employee. You must enter the codes for the following one-time data entry transactions:

  • Create Online Check

  • Update Paysheets by Paysheet

  • Update Paysheets by Payline

  • Update Paysheets by Payline Security

Note: To save the page, you must enter both codes when the pay check date on the calendar is 01/01/2012 or after, Locality is not blank, and Tax Class is Withholding.

Note: (USA) Do not use the One-Time Taxes page to override self-adjusting taxes that have taxable wage limits associated with them, such as FICA, Medicare, state disability, and state unemployment. The system self-adjusts these types of taxes, and recalculates the tax every time you run the Pay Calculation process. If you override the tax this pay period, the system self-adjusts the tax based on the taxable gross in the next pay period.

Note: (CAN) Do not use the One-Time Taxes page to change taxes with associated wage limits, such as CPP, Quebec Pension Plan, and Employment Insurance. The system recalculates taxes with maximums every time you run the Pay Calculation process. If you make an adjustment this pay period, the system corrects it in the next pay period.