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Reviewing Codes for CRA and MRQ Compliance

Check out last year's video or our new article below. 
To ensure compliance for the upcoming payroll year, we recommend reviewing your Earning and Deduction/Benefit codes to ensure the correct codes are selected for tax, CPP and EI.

Have employees in Quebec? Codes should also be reviewed for Quebec Tax, QPP, and QPIP.

How to Review Earning Codes

Step 1: Open Earning Codes in the Avanti Desktop Application.
By default, this can be found in Canadian Payroll >> Employer Payroll Tables.

Step 2: Hover over the right edge of Earning Codes, until the cursor displays the option to expand the screen. Expand the screen to the right until QPIP Earn is displayed.

Additional Information
Want to use excel to review the earning codes for compliance? Right-click on any Earning Code and select ‘Export to Excel.' All the information from this screen will be available for all of your earning codes. 

Step 3: Review the Tax Group column to ensure the correct group is selected for each earning.

  • If an incorrect Tax Group is selected, your remittances during the 2021 payroll year may be incorrect. Please contact Care@Avanti.ca for assistance.

Additional Information
The set up information for each tax group can be found in Special Tax - Federal and Special Tax - Quebec of the Desktop Application. By default, these can be found in Canadian Payroll >> Taxation & Assessment Tables. 

Step 4: Review the CPP, EI Earn, and EI Hours columns to ensure the correct exemptions are selected for each earning code.

  • If an incorrect exemption is selected, your 2021 payroll year remittances may be incorrect. Please contact Care@Avanti.ca for assistance.

Important Information
These columns display whether the earning is exempt from CPP/QPP, EI Earnings, and EI hours. 

  • Y (Yes) - the earning is exempt and is not included when determining CPP/QPP, EI Earnings and EI Hours. 

  • N (No) - the earning is included when determining CPP/QPP, EI Earnings and EI Hours. 

Step 5: Review the QPIP Earn column to ensure the exemption is set correctly for each earning code.

Additional Information
This is only required if you have employees working in Quebec. If you do not have employees working in Quebec, please skip to Step 6. 

  • If an exemption is set incorrectly, your remittances during the 2021 payroll year may be incorrect. Please contact Care@Avanti.ca for assistance.

Important Information
This column displays whether the earning is exempt when determining QPIP Earnings. 

  • Y (Yes) - the earning is exempt and is not included when determining QPIP Earnings. 

  • N (No) - the earning is included when determining QPIP Earnings. 

Step 6: Select Exit to close Earning Codes.

Great work. You have finished reviewing your earning codes for tax, CPP/QPP, EI and QPIP compliance.

Please move on to reviewing your taxable benefits.

How to Review Deduction/Benefit Codes

Step 1: Open Deduction/Benefit Codes in the Avanti Desktop Application.
By default, this can be found in Canadian Payroll >> Employer Payroll Tables.

Step 2: Hover over the right edge of Deduction/Benefit Codes, until the cursor displays the option to expand the screen. Expand the screen to the right until QPIP Benefits is displayed.

Step 3: Review the Tax Ben column to ensure it is correct. It will display:

  • No - tax will not be deducted.

  • CPP - Only CPP/QPP will be deducted.

  • Federal - Federal tax and CPP will be deducted.

  • Provincial - Quebec tax and QPP will be deducted.

  • Yes - Federal tax, Quebec tax and CPP/QPP will be deducted.

  • If this is set incorrectly, your 2021 payroll year remittances may also be incorrect. Please contact Care@Avanti.ca for assistance.

Step 4: Review the EI Ben column to ensure that it is set correctly. It will display Yes if the benefit is eligible for EI and No if it is not eligible for EI.

  • If a code is incorrect, your 2021 payroll year remittances may also be incorrect. Please contact Care@Avanti.ca for assistance.

Step 5: Review the QPIP Benefits column to ensure that it is set correctly. It will display Yes if the benefit is eligible for QPIP and No it is not eligible.

Additional Information
This is only required if you have employees working in Quebec. If you do not have employees working in Quebec, please skip to Step 6. 

  • If an exemption is set incorrectly, your 2021 payroll year remittances may be incorrect. Please contact Care@Avanti.ca for assistance.

Step 6: Select Exit to close Deduction/Benefit Codes.

Nice job! You have finished reviewing your Deduction/Benefit Codes. The next step in the year-end process is Reviewing Accumulators.

E
Elizabeth is the author of this solution article.

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