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OUTLINE
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Remittance procedures for the 8%
Ontario Retail Sales Tax on insurance premiums applicable to Ontario residents.
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An 8 % sales tax has been imposed
by Ontario on insurance premiums paid by Ontario residents.
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The PAO is responsible for collecting
and remitting the 8 % Ontario Sales tax (ORST) on all premiums for group
insurance plans where the Federal Government is the policy holder. The PAO
clerk is required to:
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- RECONCILE the UV/UW remittance listings to the Common Departmental
Financial System (CDFS).
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- DETERMINE and REMIT the ORST on the employee's (EE)
share to Ontario Ministry of Finance.
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- DETERMINE and REMIT the ORST on the employer's (ER)
share for Crowns like the Canadian Dairy Corporation (CDC) and Canadian
Commercial Corporation (CCC).
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PROCEDURES
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The procedures below apply to the 8% ORST processed
in Department 079 under activity 936/UV for employee share. Also 8% ORST
is levied against the employer paid share of premiums for certain crowns
as calculated by the system 938/UW and by the PAO clerk when an employee
is on Leave Without Pay (LWOP).
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TAXABLE PREMIUMS--The premium paid by
the employee for the following insurance programs are subject to ORST:
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- Disability insurance (DI) (751,752);
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- Long Term Disability (LTD) (726, 753, 754, 851, 852);
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- Public Service Health Care Plan (PSHCP) (703, 872, 854, 855);
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- Public Service Management Insurance (PSMIP) (750, 725);
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- Supplementary Death Benefit (SDB) (589, 590);
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- Dental Cash payments (paid by employee for LWOP).
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PAO Clerk
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MONTHLY REMITTANCE--The PAO clerk will
proceed as follows on the receipt of month end listings:
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- PRINT out a report from CDFS (0400 - 936/938).
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- RECONCILE the UV/UW listing with CDFS amounts.
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- ADJUST totals for manual transactions of ORST (cash payments).
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- DETERMINE total amount of ORST.
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- LOG ON to CDFS and CREATE remittance for all pay offices.
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- CREATE one line of Financial Coding Block (FCB) coding per
pay office.
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- NOTATE CDFS ID number on control log sheet.
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- FORWARD control log sheet to PAO QC clerk for approval.
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- PAO clerk will COMPLETE and FORWARD Remittance TR-101
form to Ontario Ministry of Finance on return of approved control log
sheet.
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