The Benefits Information window contains information that determines how benefits (up to four) are handled during payroll processing.
A non-cash taxable benefit is defined as:
"non-cash" - The employee does not receive the value of the benefit in cash - the employer pays for the benefit outside of payroll.
"taxable" - The value of the benefit is taxable (and often pensionable and/or insurable).
"benefit" - A dental, health, or other benefit the employee receives.
The settings for each benefit are:
| Employee - Benefits Information Window | ||
| Line | Field | Value |
| 1 | Benefit: Description | The text used to describe the benefit. |
| 2 | Amount | If the value of the benefit is a flat amount, the amount is entered in this field. |
| 3 | Amount Period | The period the flat amount of the benefit is for (press <F3> to select). The period is used to correctly pro-rate a benefit amount according to your pay frequency. Example: The employee is covered under a health plan, and the benefit amount to the employee is $75.00 per month. The employee's pay frequency is 52 (weekly). You would set the Amount to 75.00, and the Amount Period to monthly. With these settings, the value of the benefit that will be factored into tax calculations each pay period will be the monthly amount ($75.00), multiplied by 12 ($900.00), then divided by 52 ($17.31). |
| 4 | Percent | If the value of the benefit is a percentage of the employee's wages, the percentage is entered in this field. |
| 5 | Percent Base | If this field is left blank, the percentage calculation is based on the employee's taxable income. Alternatively, an "expression" may be entered to base the percentage on selected earnings and/or deductions. The expression is composed of employee accounts suffixes (such as "REG", "TAX", etc.) combined with the arithmetic symbols "+", "-", "*" (multiplication) and "/" (division). For example, REG+OVT+COM-TAX would mean the percentage is based on the amounts posted to the accounts with the suffixes REG, OVT, and COM, minus the amount posted to the account with the suffix TAX. NOTE: The suffixes you enter must correspond to suffixes found in the employee's accounts. The suffixes of total account cannot be used in the expression. NOTE: The suffix NET may be used to base the percentage on the net amount of the paycheck at the point where the benefit is encountered in the employee's accounts. NOTE: The characters .Q may be appended to the account suffix name to lookup the quantity instead of the amount. |
| 6 | T4 Box Number | The T4 box number in which the benefit amount is reported on the employees T4 slip (press <F3> to select). |
| 7 | Releve-1 Box Number | The R1 box number in which the benefit amount is reported on the employees Releve-1 (Quebec) slip (press <F3> to select). |
| 8 to 15 | Subject to Fed/Prov Tax, Quebec Tax, EI, CPP/QPP, Vacation Pay, PPIP, EHT/HSF, WCB/CSST | These fields enable you to specify whether the benefit is subject to tax, etc. NOTE: You control whether the benefit is subject to various deductions - NV2 payroll does not impose any rules on this. Questions about whether or not a given benefit is subject to deductions must be addressed to the CRA. |