The Accumulated Tax Reset process is for use with Option 2 or Accumulated Tax only (field titled Federal Tax Calculation in the User Specific Parameters Profile). This reset option allows for global or selective resetting or adjusting employee's accumulated tax fields. This process must be run at the beginning of each calendar year in order to reset all employees back to a tax period of 1 and to zero out all employee's optional tax year to date.
This process also clears all Start Period and End Period override settings for employees overridden to the option 2 tax calculation. Employees with Start Period of '000000' and End Period of '999999' will NOT have the pay period range cleared.
Note: This job will be run only in batch.
Do You Wish to Continue
This process will override existing Accumulated Tax values used in the calculation of income tax (option 2 only).
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Enter "N' to exit this option.
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Enter 'Y' to continue with the Accumulated Tax Reset.
Is this a Start of Calendar Year Reset
Enter "Y' if this reset is for the beginning of the calendar year. When you indicate that the reset is for the beginning of the calendar year the employee's year to date optional tax taken is automatically zeroed out and the employees' number of tax periods is automatically set to '1'.
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Enter 'N' if this reset is for any time other than at the beginning of the calendar year.
When Non-Start of the Calendar Year Reset was selected the following prompt will appear:
Enter Number of Tax Periods
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Enter the number of tax periods to be used in resetting the employee's individual number of tax periods. The number of tax periods should be set to '1' for all employees at the beginning of each calendar year.
An individual employees' number of tax periods should be reset to '1' when any changes are made to that employee's income tax information (such as exemption amount). NOTE: The employees Tax Pay Period must also be adjusted.
The Canada Revenue Agency suggests that the number of tax periods for all employees be reset to '1' whenever rate changes are made to the income tax formula, as supplied by CRA. Resetting all employees' number of tax periods would also require a change to the employee's Tax Pay Period.
Enter Starting Tax Pay Period
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Enter the pay period which will define the starting point of the history to be accessed when calculating the income tax.
For a beginning of the calendar year reset this pay period must be the first pay period of the new year for all employees.
To adjust employees throughout the year this tax pay period should be the pay period when the resetting of the income calculation takes place.
When Non start of the calendar year reset was selected the following prompt will appear:
Zero Optional YTD Tax
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Enter "N' if the employee's year to date optional tax taken is not to be cleared or zeroed out.
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Enter 'Y' if the employee's year to date optional tax is to be cleared or zeroed out. An employee's year to date optional tax should usually only be cleared at year end, regardless of when the employee's other tax information is reset.
The employee's year to date optional tax taken is automatically zeroed out when you have indicated that the reset process is a start of the year reset.
Report All or Selected Employees
A report listing all employees processed which includes both the original accumulated tax values and the new accumulated tax values.