Incorrect Quebec Employee Tax Calculation When Labour Fund Contribution Is Greater Than $3750 (Doc ID 2876042.1)

Last updated on JUNE 14, 2022

Applies to:

Symptoms

On : 12.2.10 version, Canadian Payroll Tax Issues

ACTUAL BEHAVIOR
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Incorrect Quebec Tax calculation for Employees when the Labour Fund contribution is greater than $3,750.

In the tax reduction calculation, the Labour Fund contribution seems to be limited to $3750 by year instead of $5,000.

According to the official guide from Revenu Quebec TP-1015.F-V - FORMUL AS TO CALCUL ATE SOURCE DEDUCTIONS AND CONTRIBUTIONS (2022)

https://www.revenuquebec.ca/documents/en/formulaires/tp/TP-1015.F-V(2022-01).pdf

EXPECTED BEHAVIOR
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The total of amounts withheld for the year must not exceed $5,000.


STEPS
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The issue can be reproduced at will with the following steps:

1. Using the CA Super HRMS Manager responsibility or equivalent.
2. Navigate to People > Enter/Maintain > Assignment > Tax Information >
3. Populate the Labour Fund Contr. field with $5,000.00 on form, PAYCATAX.
4. Submit a quick pay for employee.
5. Review Statement of Earnings.
6. Observe the Federal Tax is reduced, but the Quebec Provincial tax is not reduced by the Labor Fund.

Changes

The annual amount withheld is 15% and a maximum of $562.50

Vertex guide lists the maximum at $750.00.

Cause

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