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EPY: CAN - Retro Payment Generating Tax Slip For A Province For Employee That Did Not Work During The Current Taxation Year (Doc ID 2683057.1)

Last updated on JUNE 22, 2020

Applies to:

PeopleSoft Enterprise HCM Payroll for North America - Version 9.1 and later
Information in this document applies to any platform.


QPP/CPP issue - System is issuing a tax slip for a province although the employee did not work there

Currently, when an employee receives a retro payment for a period during which he/she was under a different province, the system is issuing a tax slip for that province although the employee did not work in that province in the current year.

An employee should not be issued a T4 for a province in which he/she did not work during the year. The CRA Employers’ Guide Filing the T4 Slip and Summary (Page 10) refers to “Which tax tables should you use?” in Chapter 1 of Guide T4001, Employers’ Guide – Payroll Deductions and Remittances to determine the Province of Employment in Box 10 of the T4.

Example 1

Empl ID 1 (Empl Record 0) worked in Quebec for the full year in 2019. This employee had an acting (Empl Record 1) under Ontario back in 2016 and this Empl record (acting) is not active as it is terminated. In 2019, this employee received two retro payments on his Emp Record 1, one for a retro on her overtime and another one for a retro on her BB. Although this employee was currently working in Quebec, the retro pay was issued under Ontario and therefore got an Ontario T4 in 2019 for these two payments. This employee should not be issued any Ontario T4 for 2019 taxation year because she did not work in Ontario in 2019.

Example 2

Empl ID 2 worked in Ontario for the full year 2019 (Empl record 0). In 2019, he received a retro payment for late acting (Empl record 2) that is no longer active. This retro pay was issued under Quebec although the employee did not work in Quebec in 2019, and as result, a Quebec T4 and a RL-1 was issued for that retro pay. This employee s

The employee that was not "Active" in the taxation year should not receive a year end slip.

The issue can be reproduced with the following steps:
1. Hire an employee and create two employee records.
2. Record 0 will be tied to "ON" and Record 1 will be tied to "QC"
3. Employee was paid on both records in 2018
4. Terminate Employee Record 1 in 2018
5. Run retro pay process in 2019 and pay that terminated record based on 2018 information
6. Run pay calculation and confirm
7. Run the CTX910LD and it will produce a 2019 slip for "QC" even though it was terminated in 2018




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