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PAO 4-5

Section:	ACCOUNTING AND REMITTANCE
Subsection:	TAX REMITTANCE

OUTLINE

An outline of the requirement, method and procedures for remitting Federal Income Tax (FIT), Québec Tax (QT), Canada Pension Plan (CPP), Québec Pension Plan (QPP), Québec Health Insurance Plan (QHIP)and Employment Insurance (EI) deductions to National Revenue Taxation (NRT) and Revenue Québec (RQ).

SPECIAL REQUIREMENTS:

remittance listings are not produced for these deductions (except QHIP);

deductions are accumulated in the year to date (YTD) fields on the Master Employee Record (MER), except QHIP;

amounts remitted must be reconciled to the MER, except QHIP;

employer's (ER) share of CPP, QPP and EI is not updated to the MER;

CPP, TAX and EI must be accounted for by wage-loss (WL) and no-wage-loss (NWL).

MASTER EMPLOYEE RECORD (MER)--EMPLOYEE SHARE (EE) UPDATED

YTD elements to record current year (CY) deductions;

Previous year elements to record previous year (PY) deductions.

FINANCIAL CONTROL STATEMENTS--Two financial controls are produced each update of the MER:

one for current year (CY) YTD elements;

one for previous year (PY) elements.

Each statement shows amongst other things, the totals for the following deductions. These deductions made by the Regional Pay System (RPS), and updated to the MER, are reported to department 079 with the following deduction codes.

Name	Originating Department	Deduction Code	MER Element
Fed Income Tax - NWL	000	733, 727	704
Fed Income Tax - WL	000	595, 796	704
Provincial Tax	000	598	705
CPP No-Wage-Loss	000	730	708
CPP Wage-Loss	000	575	708
QPP	000	576	709
EI No-Wage-Loss	000	588, 732	715
EI Wage-Loss	000	593, 594	716
Federal Gratuity Tax	000	596	729
Quebec Gratuity Tax	000	599	730

MER UPDATING:

AUTOMATIC--The MER is automatically updated with any transaction processed through the RPS.

MANUALLY--The MER is adjusted by PAC 30 by the pay offices, when required, from the following types of manual transaction documents:

	Cancelled payments vouchers;
	Accounts payable (AC) refunds;
	General Journal Vouchers for deduction adjustment.

PROCEDURES

WEEKLY TAX REMITTANCE PROCEDURES--A Lotus spreadsheet has been created to accumulate and calculate remittance amounts for all pay offices. Three separate spreadsheets must be completed each week for remittances of Wage Loss, Non Wage Loss and Québec. The PAO clerks responsible for TAX remittances will proceed as follows for each pay office.

ON RECEIPT OF FINANCIAL CONTROLS for each pay office:

GROUP financial controls by pay office and PLACE in processing order;

IDENTIFY last financial control produced in the week (week 1, 2, 3 and 4).

WEEKS 1, 2 and 3

DETERMINE amount of the current year (CY) remittance for the week by entering the opening balance (1st CY financial control of the week) and the closing balance (last CY financial control of the week) for each account on the Lotus Remittance Spreadsheet.

	Lotus program will determine the EE's and ER's share for each account;
	process must be completed for both WL, NWL and Québec;
	by pay office.

PRINT copy of calculations and RETAIN in a binder by pay office.

NOTE:

This process must be completed on a weekly basis (for each pay office) to ensure timely remittances.

LOG ON TO THE COMMON DEPARTMENTAL FINANCIAL SYSTEM (CDFS)--SELECT Accounts Payable and CREATE remittances as follows:

Create an Interdepartmental Settlement (IS) for: RCT	Create AP for: QUE
Fed Income Tax - NWL	Provincial Tax
Fed Income Tax - WL	QPP
CPP No-Wage-Loss	Québec Gratuity Tax
CPP Wage-Loss
EI No-Wage-Loss
EI Wage-Loss
Federal Gratuity Tax

ENTER a line of coding for each pay office for the EE share.

ENTER a line of coding for each pay office for the applicable ER share--two remittances are created, one for RCT one for Québec.

ANNOTATE CDFS ID number on the print of the Lotus spreadsheet.

COMPLETE and FORWARD remittance form PD7A for totals remitted to Revenue Canada and TDZ remittance slip for totals remitted to Government of Québec.

COMPLETE control log sheet with CDFS ID numbers and FORWARD to QC Clerk for Auditing and Approval.

WEEK 4--In week 4, in addition to current year remittance, previous year will be added to this remittance along with the QHIP payroll tax from the PAH 90 report at month end.

DETERMINE amount of the current year (CY) remittance for the month by entering the opening balance (1st PY financial control of week 1) and the closing balance (last PY financial control of week 4) for each account on the Lotus Remittance Spreadsheet.

PROCEED as for weeks 1, 2 and 3 for CY week 4 and ADD the following to your lotus spreadsheet:

	POST to Lotus spreadsheet amounts determined for the PREVIOUS YEAR;
	DETERMINE amount of QHIP for each office from the PAH 90 report;
	POST to Lotus spreadsheet;
	PRINT copies of calculations and RETAIN in a binder by pay office;
	CREATE remittances on the accounts payable screen on CDFS;
	INDICATE the PY amounts by pay office in the stub field on CDFS;
	ANNOTATE CDFS ID number on the print of the Lotus spreadsheet.

CPP, QPP AND EI EMPLOYER'S SHARE--At month-end,

	DETERMINE total Employer's (ER) share for CPP W/L, CPP N/W/L, QPP, EI W/L and EI N/W/L for the month, by pay office.
	CHARGE Treasury Board by creating an account payable interdepartmental settlement (IS) creditor initiated per pay office.
	RETRIEVE week 4 Lotus spreadsheets.
	DETERMINE Employer's (ER) share calculated for the month, by pay office.
	CREATE accounts payable IS Creditor initiated to charge ER share to Treasury Board (TB).
	NOTATE CDFS ID # on control sheet log.
	FORWARD control sheet log for approval to PAO Quality Control Clerk.
	FILE the control sheet log when returned.

Last Update: March 1999

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