Setting up Quebec tax calculations

Note: To set up a payroll tax for any other province, see the Setting Up a Provincial Payroll Tax help topic.

To set up a Quebec payroll tax:

  1. Create a provincial tax payroll calculation in 5-3-1 Payroll Calculations using tax type 7-Provincial Income Tax.
  2. Create payroll calculations for tax types 8—Employee QPP Contributions, 9—Employer QPP Contributions, 12—Employee PPIP Premiums, and 13—Employer PPIP Premiums.
  3. Open 5-2-1 Employees and select an employee using the data control.
  4. Add the five payroll calculations you just created to the employee using the display lookup window.
  5. In the Province Tax calculation row:
    1. In the TD1 Claim Code column, enter the claim code that corresponds to the claim amount on the employee's TD1 form.
    2. In the Other Tax Credits column, enter any annual provincial non-refundable tax credits requested by the employee. This is where medical expenses or charitable donations authorized by a tax services office or tax centre should be entered.
  6. Select Options > Quebec Tax Setup and then:
    1. Enter the indexed value of the personal tax credits, as found on line 7 of the employee's Form TP-1015.3-V.
    2. Enter the non-indexed value of personal tax credits, as found on line 9 of the employee's Form TP-1015.3-V.
    3. Enter the amount of any additional income tax per pay period, as found on line 11 of the employee's Form TP-1015.3-V.
    4. Enter the amount of any other deductions, as found on line 19 of the employee's Form TP-1015.3-V.
    5. Enter the amount of any deductions authorized by Revenu Quebec, after the employee has completed Form TP-1016-V.
    6. Enter the amount of any credits authorized by Revenu Quebec, after the employee has completed Form TP-1016-V.
    7. Click [Save].
  7. Select File > Save.