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OUTLINE |
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Effective July 01, 1993 the Territorial Government of the Northwest Territories (NWT) enacted the Payroll Tax Act (PTA). The PTA requires that all employers in the NWT collect from employees, regardless of residency, one percent (1%) of all gross employment income earned in the NWT. Income earned in the NWT includes salaries and the value of benefits and allowances. Some income, such as retiring allowances and pension benefits, are exempt. No tax is payable by an employee who "normally works", performs duties or provides services, in the same position outside the NWT and does not earn more than $5,000.00 in the NWT. If this employee earns more than $5,000.00 in a calendar year in the NWT, tax is payable on the full amount of remuneration earned while in the NWT. |
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Two codes have been established to collect the payroll tax. One for current deductions and one for arrears deductions: |
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973/NP--NWT Payroll Tax ; |
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974/NQ--NWT Payroll Tax Arrears. |
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Ongoing remittances of the payroll tax are due no later than the 20th day of the month following the reporting period. |
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To assist in the remittance of NWT payroll taxes, the Regional Pay System (RPS) produces a report each pay run from program PAH90. This report reflects the gross moneys subject to tax. In addition, each month-end process produces an Allowance and Deduction listing (program PAJ16) which reflects the employee's Individual Agency Number (IAN) #, the NET payroll tax deductions taken and refunds issued. Each pay office has a unique remittance number (see attached chart). |
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PROCEDURES |
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DAILY REPORTS--PROGRAM PAH90 |
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As each office processes its pay runs, upon receipt of the report for NWT, SEPARATE and PASS the report to the remittance clerk responsible for NWT. FILE the daily reports received by run number (RPI) for each office and KEEP until the month-end listings are produced. SEPARATE the extract expenditure reports for each office and FILE by run #, by pay office and by accounting month in accolade binders. |
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MONTHLY REMITTANCES |
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On receipt of the monthly listings for each pay office the following procedures are to take place: |
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- SEPARATE and SORT the monthly listings (program PAJ16) for each pay office (two copies will be received--one for filing with the extract expenditure reports and one as a working copy.)
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- To prepare remittances for NWT, COMPLETE the worksheet for each pay office. From the Common Departmental Financial System (CDFS) PULL-OFF reports to ENSURE amounts posted to CDFS from the Regional Pay System (RPS) are in balance. The selection criteria for the reports is as follows:
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pay office--one report for each office; |
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allotment 400; |
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deduction codes 973 and 974; |
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remittance month. |
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NOTE: Separate reports must be pulled-off CDFS for the North West Territories (NWT) by deduction code. |
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- These reports (from CDFS) will provide totals per deduction code for each pay office.
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- ENTER the amounts from the listings (from both PAH90 and PAJ16) and from CDFS on the worksheet.
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- ENSURE to include any manual adjustments if applicable (e.g. manual cancelled cheques or manual refunds).
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- ENTER on CDFS through Accounts Payable screen and CREATE payment for both deduction codes (973/NP and 974/NQ) for all pay offices.
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- ENTER the total amount recorded on the worksheet as the total amount of the cheque.
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- ENTER the current date as the payment date.
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- CREATE a line of coding for each pay office for both current and arrears deductions from the worksheet as follows:
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Pay Office-----Edmonton |
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Current (973/NP)---coding line ----079620009733 |
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$10,000.00 |
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Arrears(974/NQ)---coding line ----079620009743 |
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$ 2,500.00 |
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Pay Office-----Vancouver |
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Current (973/NP)---coding line----079660009733 |
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$10,000.00 |
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Arrears(974/NQ)---coding line----079660009743 |
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$ 2,500.00 |
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STUB INFORMATION: The following information is to appear on the stub portion: |
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"Remittance for the month of _________(month/year)." |
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- LIST the account numbers assigned to each pay office (see attached chart) as follows:
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| NWT Acct # |
Pay Office |
Current Deduction-973 |
Arrears Deduction-974 |
102009810
102009809 |
Vancouver
Edmonton |
$10,000.00
$10,000.00 |
$2,500.00
$2,500.00 |
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- ENTER on NWT control log sheet the following information:
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Accounting month; |
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Remittance $ value across from applicable pay office and assigned NWT account # (combination of both current and arrears deductions); |
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Accounts Payable # from CDFS. |
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- SUBMIT control log sheet to PAO Quality Control Clerk for audit and approval.
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- COMPLETE the remittance forms received from NWT for each pay office with the amount of the remittance for the accounting month.
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- ENTER the total gross earnings for all pay runs, the payroll tax calculation of 1%, and the remittance amount for each pay office being remitted.
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- HOLD the remittance forms until the control log sheet have been returned.
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- On receipt of the control log sheet, if all have been approved, PLACE completed NWT remittance forms in envelope and AFFIX address label. PLACE in outgoing mail basket.
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- NOTE: NWT does not receive any deduction listings.
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- UPDATE NWT Lotus spreadsheet with the monthly gross earnings and deduction amount per individual, per pay office.
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- ADD any new employees that appear on monthly listings to spreadsheet. The NWT Lotus spreadsheet will accumulate the total gross earnings and deductions in order to prepare the year end return for NWT Payroll Tax.
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- FILE monthly deduction listings per pay office. GROUP and PLACE listings, worksheets, control log sheets together on top of the extract reports (received daily--PAH90's) in accolade binders.
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- ENSURE to label top report with the accounting month and year.
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- THROW out working copies of the deduction listings (PAJ16).
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ANNUAL RETURNS |
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A monthly update to the NWT database is required. Enter the data from the PAJ2230 file. |
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At each year-end exercise, an Annual Return for NWT form is completed and forwarded. This form should be completed as soon as possible after the close of the calendar year. The completion of this report is to be done either by the pay offices affected or by PAO. The completion should be done as follows: |
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by pay office; |
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include the totals for gross earnings, payroll tax calculation (1%) and the total remittances for the year; |
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if applicable, underpayment remittance cheque for the balance of the calendar year; |
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a report consisting of all employees' department, paylist, name and initials, PRI, gross earnings, and the 1% tax deducted. |
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NWT PAYROLL TAX ACCOUNT NUMBERS |
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PAY OFFICE |
ACCOUNT NUMBERS |
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Halifax |
102009803 |
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Montréal |
102009805 |
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Toronto |
102009806 |
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Edmonton |
102009809 |
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Vancouver |
102009810 |
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Ottawa |
102009813 |
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Ottawa |
102009814 |
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Ottawa |
102009815 |
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Canada Revenue Agency - 03 |
102009812 |
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NWT WORKSHEET
| Accounting Month: ____________ |
| Pay Office: __________________ |
| NWT Account Number: ________ |
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| FROM PAH90 REPORT |
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Gross Earnings |
$________________ |
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Calculated 1% Tax |
$________________ |
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| FROM PAJ16 LISTINGS REPORT |
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Code 973/NP-amount |
$________________ |
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Code 974/NQ-amount |
$________________ |
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Manual adjustments |
$________________ |
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Remittance Amount |
$________________ |
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