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Copyright and TrademarksCopyright © 1993-2014 by ADP, Inc.
Portions copyright © 1988-1998 PeopleSoft, Inc.
This guide supports ADP Workforce Now.
All Rights Reserved. The information contained in this document is proprietary and confidential to ADP, Inc. No part of this document may be reproduced or transmitted in any form or by any means, mechanical or electronic, including photography and recording, for any purpose without the express written permission of ADP, Inc.
The core software technology for ADP’s product offering has been acquired through a licensing agreement with PeopleSoft, Inc., Pleasanton, California. Portions of the following text have been copied by permission of PeopleSoft Inc. Product specifications are subject to change without notice. No product warranty should be implied from this document.
PeopleSoft is a registered trademark of PeopleSoft, Inc.
The ADP logo and ADP letters are registered trademarks of ADP, Inc.
In the business of your success is a service mark of ADP, Inc.
All other trademarks and service marks are the property of their respective owners.
Printed in Canada
© 2013 ADP, Inc. ADP Proprietary and Confidential - All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 1
Table of ContentsChange History.........................................................................................................................................................1
Pension/Annuity.......................................................................................................................................................2
Purpose....................................................................................................................................................................2
Objectives.................................................................................................................................................................2
Pension Effects on Workforce Now..........................................................................................................................3
Pension/Annuity Vocabulary....................................................................................................................................4
Pension……………………………………………………………………………………………………………………………………………………………. 4
Annuity……………………………………………………………………………………………………………………………………………………………. 4
Resident……………………………………………………………………………………………………………………………………………………………4
Non Resident…………………………………………………………………………………………………………………………………………………… 5
Pensioner………………………………………………………………………………………………………………………………………………………….5
Purpose....................................................................................................................................................................6
Objectives.................................................................................................................................................................6
Client Setup Wizard - Pension Company Creation....................................................................................................7
Adding a New Test Client with Pension (Using the Admin Tool)………………………………………………………………………..7
Add a Company to an Existing Client – Pension Company Creation (UA User).........................................................8
Adding a Pension Company to an Existing Client (Client Wizard)……………………………………………………………………… 8
The I-Hub Onboarding Process.................................................................................................................................9
On-boarding Pension/Annuity Payroll……………………………………………………………………………………………………………… 9
e-Order.....................................................................................................................................................................9
Ledger.....................................................................................................................................................................10
I-Hub Enhancements..............................................................................................................................................11
Identifying a Payroll as Regular or Pension…………………………………………………………………………………………………… 11
New Fields………………………………………………………………………………………………………………………………………………………12
Federal & Provincial Tax………………………………………………………………………………………………………………………………… 12
Earnings – Common Earnings………………………………………………………………………………………………………………………… 13
Earnings – Setups…………………………………………………………………………………………………………………………………………… 14
Earnings – Setup (Schedule Section)………………………………………………………………………………………………………………. 14
Earnings – Setup (Taxation and Reporting)……………………………………………………………………………………………………. 15
© 2013 ADP, Inc. ADP Proprietary and Confidential - All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 2
Deductions – Common Deductions………………………………………………………………………………………………………………… 16
Interview Status......................................................................................................................................................17
Regular & Pension Payroll……………………………………………………………………………………………………………………………….17
Summary……………………………………………………………………………………………………………………………………………………….. 17
Purpose..................................................................................................................................................................18
Objectives...............................................................................................................................................................18
Changed to Workforce Now Wizards.....................................................................................................................19
Enhancements to the New Hire Wizard…………………………………………………………………………………………………………. 19
Tax Page for a Non Resident Pensioner Page…………………………………………………………………………………………………. 19
Identifying a New Hire as a Non Resident Pensioner……………………………………………………………………………………… 20
Non Resident Tax Information………………………………………………………………………………………………………………………. 23
Non Resident Tax Information……………………………………………………………………………………………………………………….. 23
Adding a Non Resident Position (Add another Position Wizard)............................................................................24
Changes to Workforce Now Standalone Pages.......................................................................................................25
Tax Withholdings Standalone Pages.......................................................................................................................26
Non Resident Tax Tab Mnemonics.........................................................................................................................26
Tax Frequency Override..........................................................................................................................................27
Tax Frequency Override…………………………………………………………………………………………………………………………………. 27
Verify Input.............................................................................................................................................................28
Verify Input Page…………………………………………………………………………………………………………………………………………….28
Summary................................................................................................................................................................28
Purpose..................................................................................................................................................................29
Objectives...............................................................................................................................................................29
Transfers.................................................................................................................................................................30
Transfer Impacts……………………………………………………………………………………………………………………………………………. 31
Import Changes......................................................................................................................................................32
Summary................................................................................................................................................................33
Purpose..................................................................................................................................................................34
Objectives...............................................................................................................................................................34
The Effects of Pension on Reporting.......................................................................................................................35
Reporting………………………………………………………………………………………………………………………………………………………. 35
© 2013 ADP, Inc. ADP Proprietary and Confidential - All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 3
Employee Self Service (ESS) for Pensioners............................................................................................................36
Payroll Changes Report Enhancements…………………………………………………………………………………………………………..36
Summary................................................................................................................................................................36
Purpose..................................................................................................................................................................37
Objectives...............................................................................................................................................................37
Pension/Annuity Amounts & Tax Forms.................................................................................................................38
Pension Tax Forms…………………………………………………………………………………………………………………………………………. 38
T4A.........................................................................................................................................................................39
T4A – RCA (Retirement Compensation Arrangement)............................................................................................40
T4A – NR (Non Resident)........................................................................................................................................40
NR4 (Non Resident)................................................................................................................................................41
Relevé 1..................................................................................................................................................................41
Relevé.....................................................................................................................................................................41
Summary................................................................................................................................................................42
Knowledge Check...................................................................................................................................................43
Knowledge Check Answers.....................................................................................................................................45
Module Summary...................................................................................................................................................47
Training Evaluation.................................................................................................................................................48
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 1
Change History
The last two updates are listed here.
Change Description Page(s)
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 2
Pension/Annuity
Purpose
This course has been designed to take you through all areas of Workforce Now that have been impacted by the addition of Pension/Annuity payrolls. During our exploration we will discuss the impacts of decision and which tax forms are affected.
Objectives
Upon completion of this course, participants will be able to:
Define pension/annuity vocabulary
Identify the onboarding changes in both Admin Tool and I-Hub
Identify which wizards and standalone pages contain pension/annuity fields
Identify the transfer impacts
Identify the Importing Impacts
Describe which reports carry pension information
Describe the impacts to Employee Self Service
Identify pension tax form details
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 3
Pension Effects on Workforce Now
The following areas have been affected by the introduction of pension/annuity payrolls:
Onboarding (e-Order, Admin tool and I-Hub)
Workforce Now pages:
New Hire Wizard
Add Another Position Wizard
Tax Withholdings Page
Tax Frequency Override Page
Verify Input Page
Transfer Page
Import Page
Report Page
Tax Form Impacts
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 4
Pension/Annuity Vocabulary
The following vocabulary provides definitions that will be helpful throughout the remained of the course
Pension
Is a regular payment made during retirement from an investment fund, to which a person or their employer has contributed throughout their working life.
Annuity
A financial product sold by financial institutions. It is designed to accept and grow funds from an individual and then, upon retirement, pay out a stream of payments to the individual.
Annuities are primarily used as a means of securing a steady cash flow for an individual during their retirement years.
A fixed sum of money paid to someone each year, typically for the rest of their life
Resident
For the purpose of income taxes residents are defined as follows:
Significant residential ties are defined as a person that has:
A home in Canada
A spouse or common-law partner in Canada
Dependants in Canada
Secondary residential ties are defined as a person that has:
Personal property in Canada (Car or Furniture)
Social ties to Canada (Membership in recreational or religious organizations)
A Canadian drivers license or passport
Health insurance with a Canadian province or territory
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 5
Non Resident
For the purpose of income taxes residents are defined as:
A normally, customarily, or routinely live in another country and are not considered a resident of Canada
A person that does not have significant residential ties in Canada
and
A person that lives outside Canada throughout the tax year
or
A person that stay in Canada for less than 183 days of the taxation year.
Pensioner
Is defined as a person who lives on or is collecting a pension, most commonly because of retirement from the work force.
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 6
Purpose
In this module we will discuss the impacts of pension/annuity payroll, on the addition of new clients and additional business. We will review the impacts in both Admin Tool and in I-Hub.
Objectives
At the completion of this module, you will be able to:
Identify where the pension indicator is within Admin Tool
Identify the additional deduction defaults codes
Describe what features are disabled when pension is turned on
Identify the pension indicator in e-Order
Locate if a payroll is pension or regular by the indicator in Ledger
Setup a pension payroll in I-Hub
Identify impacts to all fields (which have added, modified or deleted) for pension payrolls
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 7
Client List - Pension Company Creation
Adding a New Test Client with Pension (Using the Admin Tool)
Pension companies can be created while creating the client in admin tool.
Note: Once the company type (Regular or Pension) has been created, the company type cannot be reverted.
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 8
Add a Company to an Existing Client – Pension Company Creation (UA User)
Adding a Pension Company to an Existing Client (Client List)
Additional companies can identified as a pension/annuity company by selection the Pension/Annuity Payroll indicator in the Pension Payroll Settings section of the Client Wizard.
Once the payroll has been identified as pension the following becomes true:
The settings cannot be copied between the Regular Company and Pension Company.
The Record of Employment Submission Method is disabled.
Once the company is created, the settings can no longer be reverted.
The following are added as default deduction codes:
02, 04, 05, 06, 80 and 95
06 (NR Tax for pension companies)
01 is added as an earning default for Pension Companies
Pension/Annuity Payroll indicator has been selected.
ROE is disabled
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 9
The I-Hub Onboarding Process
On-boarding Pension/Annuity Payroll
E-Order contains a Pension Payroll indicator.
The indicator is designed to tell Implementation the following:
That this payroll is a pension payroll, and they must select Pension Payroll in the WFN interview for this company.
That supplemental terms documents will be required
The indicator will also indicate when the Pension/Annuity Supplemental terms documents are required.
The billing units and Product code remain the same as regular payroll
e-Order
Note: The Pension Payroll indicator is for informational purposes only, and does not flow anywhere.
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 10
Ledger
Ledger now has a new indicator that identifies is the payroll is regular or a pension/annuity payroll:
Regular will be identified by a 0
Pension/Annuity Payrolls will be identified by a 1
The indicator will determine which billing units are used.
This information is pushed to Mainframe with the conversion payroll.
The new indicator is located in Ledger as follows:
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 11
I-Hub Enhancements
The following enhancements have been made to I-Hub regarding Pension Payroll setups:
Payrolls will now be filtered to correct interview based on how they are identified in the Interview Status page.
A separate interview has been introduced within the payroll interview.
This interview will only appear if a payroll has been defined as a pension payroll in the Interview Status page.
Identifying a Payroll as Regular or Pension
This is the Payroll System Type page within the Payroll Interview.
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 12
New Fields
The Pension/Annuity payroll interview is the same as the regular payroll with the following exceptions:
The NR Tax Remittance Account field has been added
The following fields have been removed:
Employment Insurance Rate
CSST Rate
CSST Classification Code
Federal & Provincial Tax
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 13
Earnings – Common Earnings
There are three common earnings available for Pension/Annuity payroll:
Pension
Group Term Life (Equal to the TXB Life in the regular payroll)
Medical Premium Benefits (Equal to the TXB Medical Premium Benefits in the regular payroll)
The Pension option is always checked by default and cannot be unchecked.
The Group Term Life and Medical Premium Benefits are optional and must be setup using the earning pages.
The Earnings – Common Earning Page appears as follows:
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 14
Earnings – Setups
There has been several changes made within the Earnings – Setup section of the Pension/Annuity interview:
4 new questions have been added to the Schedule section.
Four dropdown fields have been deleted from the Taxation and Reporting section
CPP
EI
QPIP
Earnings – Setup (Schedule Section)
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 15
Earnings – Setup (Taxation and Reporting)
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 16
Deductions – Common Deductions
There are 15 deductions that are common to both regular payroll and pension/annuity payroll.
The following deduction are checked by default and cannot be changed:
Federal Tax
Provincial Tax
NR Tax
2nd Deposit Account
3rd Deposit Account
All remaining deductions are optional and must be setup using the deduction setup pages.
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 17
Interview Status
Regular & Pension Payroll
This section provides an overview of what sections are required and which interview components have been completed.
Note: If only one type of payroll was selected in the Payroll System page, then only one interview will appear
Summary
You are not able to:
Identify where the pension indicator is within Admin Tool
Identify the additional deduction defaults codes
Describe what features are disabled when pension is turned on
Identify the pension indicator in e-Order
Locate if a payroll is pension or regular by the indicator in Ledger
Setup a pension payroll in I-Hub
Identify impacts to all fields (which have added, modified or deleted) for pension payrolls
New
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 18
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 19
Purpose
In this module we will review the pension impacts to specific wizards and standalone pages.
Objectives
At the completion of this module, you will be able to:
Identify the changes and impacts to step 1,2 and 4 of the new hire wizard
Identify the changes and impacts to the Add Another Position wizard
Describe the changes and impacts made to various standalone pages
Identify the Non Resident Mnemonics
Demonstrate how to create a Tax Frequency Override
Identify the changes within Verify Input
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 20
Changed to Workforce Now Wizards
Enhancements to the New Hire Wizard
The following enhancements have been made to the new hire wizard:
In Step 1 (Personal)
Non Resident’s can select their country of origin from the Country field.
In Step 2 (Employment)
A Non-Resident indicator has been added.
In Step 4 (Tax)
EI Premiums and CPP/QPP taxation automatically defaults to exempt and is view only.
The commission section has been removed on pension payrolls for it is not applicable to pensioners.
Tax Page for a Non Resident Pensioner Page
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 21
Identifying a New Hire as a Non Resident Pensioner
The ability to hire a Non Resident employee has been added to the New Hire Wizard.
The Non Resident indicator is located in Step 2 (Employment) of the New Hires Wizard.
Note: The Non Resident indicator would not be checked for Resident Pensioners.
This indicator is now available in all New Hire Wizard (Standard and Custom Templates)
When this indicator is selected it makes the appropriate changes to Step 4 of the new hire wizard “Taxes”
Step 2 – Non Resident Indicator
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 22
Step 4 – Non Resident – Province of Employment
The CRA PA/RQ ID will appear as the NR business number.
When the Non Resident is selected in step 2, the Province of Employment dropdown contain the following two options:
Non Resident
United States
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 23
Step 4 – Non Resident – Tax Calculations
The EI Premium and CPP/QPP contributions are set to exempt and are grayed out.
Neither of these taxes is applicable to Non Resident positions.
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 24
Non Resident Tax Information
A new section called Non Resident Tax Information will display after the Federal Tax Alternations section.
This section appears in Step 4 of the New Hires wizard.
The section consists of the following sub sections:
Tax Country
USA State (This field is only editable when the tax country in USA)
Recipient Type
Trust Name
Tax Exemption (Periodic)
Tax Exemption (Lump Sum)
Non Resident Tax Information
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 25
Adding a Non Resident Position (Add another Position Wizard)
The ability to add a non resident position as a new position has also been updated.
The following enhancements have been made to the Add Another Position wizard
A new field called Non Resident has been added in Step 2 (Position Details).
Non Resident and United States is added to the Province of Employment dropdown
Once the tax residency information has been sent to Mainframe, it cannot be change.
Separate positions must be created for employees that move between being a resident and a non resident tax types.
Note: All Pensioners receiving a Retirement Compensation Arrangement (RCA) must have a second position. (One position for the RCA and another one for their regular tax forms)
Non Resident information can be viewed on the Position page:
Pathway: People > Pay > Tax Withholdings > Position Tab > Select Other Positions link
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 26
Changes to Workforce Now Standalone Pages
Federal Tab: People > Pay > Tax Withholdings
The Federal tax tab appears as follows for Non Residents:
Tax credits
Defaults to No Tax Credits
Tax Calculations
Defaults to EI & CPP/QPP Exempt
Business number
Enter the NR business #
Province of Employment
Non Resident or United States
Defaults
NR Business Number
Default
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 27
Tax Withholdings Standalone Pages
Non Resident Tab: People > Pay > Tax Withholdings
This tab holds all of the Non Resident pensioner information.
Non Resident Tax Tab Mnemonics
NTXC: Non Resident Country Code (Validated/maintained against CRA list of allowed values)
SLOC: Employee State Code
NRRT: Non Resident Recipient Type
ETXF: Request a TOD tax form for a deceased Pensioner
NRXP/NRXL: Exemptions for periodic/lump sum payments
TNAME: Name of the trust if the recipient’s income was related to an estate or a trust
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 28
Tax Frequency Override
Adding Non Resident Earnings
A new tab called Non Resident has been added to the Tax Frequency Override page.
This tab is designed to capture Non Resident Pensioner Earnings.
When adding and earning code in the Tax Exemption/Tax Override Earning Information window, the user must complete the following fields:
The earning code (Mandatory)
The tax deduction Participation indicator
Tax Override Rate
Tax Exemption Code
Tax Frequency Override
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 29
Verify Input
Some fields have been extended and others have been removed in the Verify Input page:
The Tax view in the Verify Input page has been extended to accommodate for the Non Resident Pensioners and Pensioner Information.
The ROE and EI history sections have been removed for they are not applicable to pensioners.
Verify Input Page
Starting Point: Process > Payroll > Verify Input > Taxes Section
Summary
You are now able to:
Identify the changes and impacts to step 1,2 and 4 of the new hire wizard
Identify the changes and impacts to the Add Another Position wizard
Describe the changes and impacts made to various standalone pages
Identify the Non Resident Mnemonics
Demonstrate how to create a Tax Frequency Override
Identify the changes within Verify Input
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 30
Purpose
In this module is to we will review the pension impacts to transfers and import.
Objectives
At the completion of this module, you will be able to:
Identify the transfer limitations and impacts to pension employees
Describe the requirements for various transfer types
Identify where the Non Resident indicator is located in the transfer screen
Identify the Non Resident Mnemonics
Identify the importing limitations and impacts to pension employees
Describe the requirements for various situations
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 31
Transfers
A Non Resident field has been added to the Transfer page.
Tax Residency fields can only be changed before they are processed in Mainframe, through the transfer process.
When executing a transfer the Non Resident indicator must be selected for the position that is a non resident.
Notes:
Transfers cannot be completed between a regular company and a pension company.
New Hire positions can only be transferred to the same tax form.
The transfer process is used to facilitate the following changes:
Changing a tax residency type:
Resident to Non Resident
Non Resident to Resident
Move a position from one pension payroll to another:
Non Resident to Non Resident
Resident to Resident
The following information outlines the requirements and results of transfers using Resident and Non Resident positions:
A transfer from a Resident to a Non Resident Position
The Province of Employment indicator must be changed to Non Resident or United States.
Enter Federal and Provincial Only
Results: Once the transfer is completed the Resident information is deleted.
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 32
Transfer Impacts
A transfer from Non Resident to a Resident Position
The Province of Employment indicator must be changed to a Canadian province.
Enter Federal and Provincial Only
Results: Once the transfer is completed the Non Resident information is deleted.
A transfer from Non Resident to Non Resident Position
All Non Resident information is retained.
If the transfer is a company to company transfer and the source position has Non Resident earnings, the earning can be mapped.
A transfer from Resident to Resident Position
All Federal and provincial tax data is retained.
Note: To change a tax residency on a new hire the user must select one tax form
Transfers: Process > HR > Transfers
New
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 33
Import Changes
The new NR tax fields can be imported
US and NR have been added to the bottom of the Province of Employment field.
The following has been disabled/hidden from imports for Pensioners:
Commission Taxes
CPP/QPP
ROE
EI
Provincial data for Non Resident Pensioners
Adding a Pensioner or Pension Position without Tax Information
The Non Resident indicator must be yes when importing any new hire Non Residents.
Note: If the Non Resident indicator is left blank the employee will be hired as a resident employee.
Adding a Pensioner or Pension Position with Tax Information
The Non Resident tax bundle is available for selection in the import template.
If CPP/QPP and/or EI values are entered for a Non Resident they will be rejected in the import file.
Update to Pensioner Information
Pensioner information can be updated using the shared tax data bundle.
Deleting a Pensioner Information
When data in the import template, is replaced with the “~” symbol the information in Workforce Now will be deleted.
Transfer New Hire Pensioners
The transfer functionality can be used to change Tax Residency on a new hire however; if the one tax form is not selected the change will be rejected in the import file.
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 34
Summary
You are now able to:
Identify the transfer limitations and impacts to pension employees
Describe the requirements for various transfer types
Identify where the Non Resident indicator is located in the transfer screen
Identify the Non Resident Mnemonics
Identify the importing limitations and impacts to pension employees
Describe the requirements for various situations
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 35
Purpose
In this module is to we will discuss the pension impacts to reporting and employee self service.
Objectives
At the completion of this module, you will be able to:
Identify which reports have impacted by pension
Create a custom report with Non Resident values
Identify the impacts to employee self service
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The Effects of Pension on Reporting
Reporting
Non Resident and pension information has been updated on the following reports: (Standard and Custom)
Employee Profile Report (Standard Reports)
Audit Trail Report (Standard Reports)
Employee Payroll Changes Report (Standard Reports)
In addition a Non Resident section has been added to Tax Withholdings file in custom reporting.
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Employee Self Service (ESS) for Pensioners
Payroll Changes Report Enhancements
All pensioners can login and view their information the same way an employee would.
Non Resident or Pension employees can view the following:
The same pages as a regular employee
Their Non Resident and Tax Withholding information
Note: The Commission Tab is not visible to Pensioners
Summary
You are now able to:
Identify which reports have impacted by pension
Create a custom report with Non Resident values
Identify the impacts to employee self service
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
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Purpose
In this module is to review the Pension/Annuity tax forms.
Objectives
At the completion of this module, you will be able to:
Identify the tax forms used for Resident Pensioners and Non Resident Pensioners
Identify which boxes values will appear in on the tax form
Identify which tax forms are used for which earnings/deductions
Access reference information
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
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Pension/Annuity Amounts & Tax Forms
Pension Tax Forms
There are three main taxes for used for Pension/Annuity payrolls based on if the pensioner’s status (resident VS. non-resident):
T4A
T4A – RCA (Retirement Compensation Arrangement)
T4A – NR (Non-Resident)
NR4 (Non-Resident)
Relevé 1
Relevé 2
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
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T4A
Pension, Retirement, Annuity and other income.
T4A remittances are paid to the CRA.
If a T4A is generated for an employee with no T4, the pension adjustment will appear on the T4A in box 034.
If no T4A is produced then a T4 will be produced and the Pension Adjustment amount will display in box 52.
Refer to the Tax Forms Reference Guide to view the most current information and tax form image.
http://adp-portal.int.adp.ca/sites/IT/devsupport/PayTech/ RG_PT_Tax_Forms.pdf
The following boxes contain Pension/Annuity values.
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
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T4A – RCA (Retirement Compensation Arrangement)
This tax form is used to report amounts paid from a Retirement Compensation Arrangement (RCA) to residents of Canada.
Typically an Executive Pension Plan, used like a supplemental pension plan.
Remittances on the RCA are paid to CRA.
Employees must have a separate payroll ID for their RCA earnings.
T4A-RCA earning would have a separate business number and its own tax pkt.
RCA payment paid to non-residents must be reported on a NR4 tax form.
Client‘s must file T4A-RCA forms and summaries by paper, these are not included on Magnetic Media direct filing.
Refer to the Tax Forms Reference Guide to view the most current information and tax form image.
http://adp-portal.int.adp.ca/sites/IT/devsupport/PayTech/RG_PT_Tax_Forms.pdf
T4A – NR (Non Resident)
Non Residents who carry on business in Canada or who are employed in Canada (usually taxed in Canada on their income and associated travel expenses).
The T4A – NR is used to report fees, commissions or other amounts paid to or credited to Non Resident individuals, partnerships or corporations for services rendered in Canada
The Pay Period tax calculation is used on amounts paid to non-residents for services provided in Canada, with the exception of processed under Tran code 91.
Amounts paid to a Non Resident for services provided in Canada under a Tran code 91 will be taxed a federal tax flat amount of 15% and a provincial tax flat amount of 9%.
For Non Residents working in Quebec, refer to the Relevé
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
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Refer to the Tax Forms Reference Guide to view the most current information and tax form image.
http://adp-portal.int.adp.ca/sites/IT/devsupport/PayTech/RG_PT_Tax_Forms.pdf
NR4 (Non Resident)
Paying Canadian pensioners residing in other countries certain types of income may require the reporting of that income on an NR4.
Pensions, RRSP, RRIF, Annuities, IAAC, Management Fees, Estate or Trust Income, interest or dividends from investments and rent or royalties.
Taxes are calculated as a flat percentage of taxable wages determined by the recipient’s country of residence.
Refer to the Tax Forms Reference Guide to view the most current information and tax form image.
http://adp-portal.int.adp.ca/sites/IT/devsupport/PayTech/RG_PT_Tax_Forms.pdf
Relevé 1
The Relevé 1 is used to report income, source deductions and employer contributions.
The remittances are paid to Ministry of Revenue Québec (MRQ).
This tax for is produced when an employee’s PREM = 2.
When the CTXO = 1 the following boxes will hold values related to the T4A –RCA.
Box E will hold the Québec income tax withheld at source.
Box O (RQ) holds the Other Income not held in box A.
Relevé
The Relevé 2 tax forms are used to report retirement income, annuity income and Québec income tax for retired persons in Québec.
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
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Refer to the Tax Forms Reference Guide to view the most current information and tax form image.
http://adp-portal.int.adp.ca/sites/IT/devsupport/PayTech/RG_PT_Tax_Forms.pdf
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
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Summary
You are now able to:
Identify the tax forms used for Resident Pensioners and Non Resident Pensioners
Identify which boxes values will appear in on the tax form
Identify which tax forms are used for which earnings/deductions
Access reference information
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
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Knowledge Check
1. The Pension/Annuity company indicator is located in step 3 of the Client List?
a) True
b) False
2. The Pension indicator in e-Order sets up the pension payroll?
a) True
b) False
3. There is no change to the payroll interview, when there is a pension payroll?
a) True
b) False
4. What steps are affected by pension in the New Hire Wizard? (Select all that apply)
a) Step 1
b) Step 2
c) Step 3
d) Step 4
5. Employees can be transferred from a Resident to a Non Resident position?
a) True
b) False
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
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6. CPP/QPP can be imported into a Non Residents profile? a) True
b) False
7. Non Resident information is now an option within custom reporting?
a) True
b) False
8. The T4A – NR holds the Non Resident values.
a) True
b) False
9. T4A – RCA’s can be filed by magnetic media?
a) True
b) False
10.T4A – NR is used to report fees and commissions.
a) True
b) False
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
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Knowledge Check Answers
1. The Pension/Annuity company indicator is located in step 3 of the Client List?
a) True
b) False
2. The Pension indicator in e-Order sets up the pension payroll?
a) True
b) False
3. There is no change to the payroll interview, when there is a pension payroll?
a) True
b) False
4. What steps are affected by pension in the New Hire Wizard? (Select all that apply)
a) Step 1
b) Step 2
c) Step 3
d) Step 4
5. Employees can be transferred from a Resident to a Non Resident position?
a) True
b) False
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 48
7. CPP/QPP can be imported into a Non Residents profile? a) True
b) False
8. Non Resident information is now an option within custom reporting?
a) True
b) False
9. The T4A – NR holds the Non Resident values.
a) True
b) False
11.T4A – RCA’s can be filed by magnetic media?
c) True
d) False
12.T4A – NR is used to report fees and commissions.
a) True
b) False
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 49
Module Summary
You are now able to:
Define pension/annuity vocabulary
Identify the onboarding changes in both Admin Tool and I-Hub
Identify which wizards and standalone pages contain pension/annuity fields
Identify the transfer impacts
Identify the Importing Impacts
Describe which reports carry pension information
Describe the impacts to Employee Self Service
Identify pension tax form details
© 2014 ADP, Inc. ADP Proprietary and Confidential- All Rights Reserved. For Internal Use Only.The ADP logo and ADP letters are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc.
Page 50
Training Evaluation
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Thank-you for your feedback.
Your Instructor will direct you to the evaluation.
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