Provincial Tax (Infotype 0462) 

Definition

The Provincial Tax infotype (0462) is the second in a series of four infotypes used to process Canadian taxation in mySAP HR Payroll. These four infotypes are as follows:

·         The Tax Assignment infotype (0461)

·         The Provincial Tax infotype (0462)

·         The Federal Tax infotype (0463)

·         The Additional Tax Data infotype (0464)

Requirements

For every Canadian employee whom you wish to process in mySAP HR Payroll, you must create a Provincial Tax infotype (0462) record that corresponds to the province of employment stored for that employee in the Tax Assignment infotype (0461). Furthermore, in the event that the employee’s province of residence differs from the province of employment, then you must create an additional Provincial Tax infotype (0462) to reflect the province of residence.

The Provincial Tax infotype (0462) is neither required nor available if the province of employment is ZZ, that is, Outside Canada.

Use

The Provincial Tax infotype (0462) stores important provincial taxation information that is used to calculate provincial tax withholding in accordance with the employee’s province of employment and province of residence.

For each province or territory, a separate subtype of the Provincial Tax infotype (0462) exists to accommodate specific provincial and territorial withholding requirements.

Information stored on the Provincial Tax infotype (0462) includes total personal tax credits from the provincial or territorial Form TD1, total non-indexed amounts, and letters of waiver. For employees whose province of employment is Quebec, the information stored on this infotype includes data from Forms TP-1015.3 and TP-1015.R.13.1, as well as total credits, additional tax amounts and deductions.

The time constraint described above mandates that each Provincial Tax infotype (0462) record exist until 31.12.9999. However, although Provincial Tax infotype (0462) records cannot be delimited, they only influence tax calculation if they are referenced within the Tax Assignment infotype (0461).

Example

Employee Janet Simcoe works in Ontario. Her province of employment is ON and is maintained as such in the Tax Assignment infotype (0461). In the Provincial Tax infotype (0462), a record in subtype 'ON  ', corresponding to her province of employment, must be created and maintained to enable Ontario provincial tax calculation.

Employee Jeanne Jouvin works in Quebec and lives in Ontario. Within her Tax Assignment infotype (0461) record, her province of employment is QC and her province of residence ON. In the Provincial Tax infotype (0462), a record in subtype 'QC  ', corresponding to her province of employment, must be created and maintained to enable Quebec provincial tax calculation. Similarly, a record in subtype 'ON  ', corresponding to her province of residence, must also be defined and maintained.