Canada | How do I process a statutory adjustment for correction purposes?

Canada | How do I process a statutory adjustment for correction purposes?

The Employees' statutory components such as Taxes/EI/CPP/QPP/QPIP can be corrected by creating and processing the relevant Adjustment component.

Step 1: Search for and create the relevant Adjustment component on company level.

      Navigate > Config > Payroll > Payroll Config > Payroll Components

      

      Federal/Provincial Tax Adjustment components
      

Alert
NOTE!

The tax adjustment component you use depends on the employee’s province of employment:

  • All provinces except Quebec:

    • Use the Federal Tax Adjustment (FTAXADJ) component to adjust both federal and provincial taxes.

  • Quebec employees:

    • Use the Federal Tax Adjustment (FTAXADJ) component to adjust federal tax only.

    • Use the Provincial Tax Adjustment (QTAXADJ) component to adjust Quebec provincial tax only.


      EI Adjustment components
      

      CPP/CPP2 Adjustment components
      

      QPP/QPP2 Adjustment components
      

      QPIP Adjustment components
      
            
Step 2: Process the component on the employee's Notes payslip section on the Edit Payslip screen.

      Navigate > Employee > Payroll Processing > Edit Payslip > Notes

      

Alert
IMPORTANT!
When making adjustments to the components, ensure that you also review the corresponding income note components to confirm that the amounts on the income components align appropriately with the adjustments made.

Any changes to the income components will be at the user’s discretion.