Set up Federal Personal Tax Credits
Change Personal Federal Tax Credit type
Federal Personal Tax amount calculation can be changed from the employee tab.
1. Go to Payroll > Employees and press Edit beside an employee’s name.
2. Go to the Tax tab
The existing federal tax will default as the basic personal amount for the calendar year. To change the Personal Tax Credit amount, click Add Personal Federal Tax Configuration.
3. Under the Personal Tax Amount Type, select one of the following
- Maximum additional amount: $13,229.00, should be applied for annual income below $150,473.00
- Minimum additional amount: $12,298.00, should be applied for annual income above $214,368.00
- Calculate: For annual income between $150,473.00 and $214,365.00
4. Click Save to make changes.
If you choose to Calculate based on net income, you will see a note indicating that "The Federal basic personal amount may be lower, depending on the employee’s salary”. This is because the Federal basic personal amount is being calculated based on a formula that varies on the employee’s salary.
View Federal Personal Tax Reports
There are two different ways you can view Federal Taxes: Employee Tax & Compensation Report or Employee Details.
Both reports have been updated to include Federal Personal Tax Credits.
A. Employee Tax and Compensation Report
On the Employee Tax and Compensation Report a new column ‘Personal Tax Amount Type’ was added to the left of the Federal TD1 column to display the Basic Personal Federal Tax Amount option selected on the Employee Tax Screen.
1. To view this report, click on the Reports tab, under the Custom Reports select Employee Tax and Compensation
2. Select the employee and click Submit.
3. The Federal TD1 column will be updated with the federal tax credit amount to reflect the selected option on the Tax Screen.
The Personal Tax Amount Type column will show how the Personal Amount tax is being calculated.
Option B: Employee Details Report
In the Employee Detail Report, a new column ‘Personal Tax Amount Type’ was added to the left of the Federal TD1 column to display the Basic Personal Federal Tax Amount option selected on the Employee Tax Screen.
1. To view this report, click on the Reports tab, under the Custom Reports select Employee Details.
2. Select the employee and click Submit.
3. The Personal Tax Amount Type column will be updated with federal tax credit amount to reflect the selected option on the Tax Screen.