The following sections describe the various configuration tasks required to set up Canadian Payroll.
This App leverages Dynamics 365 Employees and Dynamics 365 Timesheets. In order to access these pages, the User Experience Level must be set to “Essential” on the Company Information Page. The Payroll Setup wizard will attempt to change this for you if the person running the setup has the appropriate permission. Without this setting, you will not be able to access Employees in Dynamics 365 Business Central, and consequently won’t be able to configure their payroll information, or run payroll for employees.
Please note that at the time of this writing, we do NOT support a worker working in multiple provinces in Canadian Payroll. If you have an employee in more than one province in a calendar year, a separate Canadian Payroll employee will need to be created for each province. YTD’s and max thresholds will need to be tracked manually.
Payroll Setup Wizard
The payroll setup wizard will guide you through configuring payroll for the first time. It must be run before configuring anything else.
In this wizard you will configure which bank account to use, which G/L accounts to post with, hourly pay codes (if any), and typical payment and payroll run settings. Employee specific details must be setup individually after the payroll setup wizard is complete.
You can start the wizard in a few different ways:
- If this is a first-time Canadian Payroll setup, a notification will appear on your Role Center page, as well as on all Canadian Payroll pages. Select “Click Here to Setup” in the notification to launch the Payroll Setup Wizard.
- Or, in the assisted setup, choose “Set Up Canadian Payroll”
Or, enter “Payroll Setup Wizard” in the Search Bar.
Step 1: Terms and Conditions
To begin the setup, agree to the Terms and Conditions, and enable the checkbox before choosing “Next”.
If this is your first time with Canadian Payroll, or have otherwise not registered previously, then choose ‘I need to sign up for a new account’.
If your company already has an account, choose ‘I already have an account’, and enter the account Registration Code (values for External Reference, User, and Password aren’t required). If you aren’t sure what these values should be, contact support and they will help provide the details.
Choose Next to continue.
Step 2: Payroll Run Default Settings
Payroll Run default settings are configured next. These values are used for employees who have not been configured for Canadian Payroll.
To change the default Payroll Run settings later, go to the Payroll Service Setup page, or run the Payroll Setup Wizard again. To change Payroll settings for an employee later, select an employee from the Employees page, and go to the Payroll FastTab.
The following table lists each setup question, and its description.
|When are your employees typically paid?||Refers to Payment Frequency. Choose the time interval that the company employees are paid at. Options include Monthly, Semi-Monthly, Bi-Weekly, and Weekly.|
|How many pay periods do you typically have?||Refers to Pay Periods Per Year. This value changes when you set the Payment Frequency. Additional values are available by choosing the More button and selecting a different value.|
|Are they mostly salaried or hourly?||Refers to Default Pay Type. Choose a Pay Type based on how employees are usually compensated. Options include Fixed Salary, and By Hours.
If your employees are salaried then you must enter their salary information on the Employee Card.
If your employees are hourly then you must enter the rates either at the employee level or at the hourly pay code level.
|How are they typically paid?||Refers to the default Bank Payment Type. Choose a value based on what method is used for paying most employees. Options include Computer Check, Manual Check, Electronic Payment, and Electronic Payment IAT.
Electronic Payment-IAT can be used for workers with international bank accounts, such as employees from the USA.
|What payment method should be used?||Refers to Payment Method Code. This value is used when transferring payroll details to the Payment Journal. Options include all Payment Method Codes available for your company, which may include codes for cash, cheque, and bank transfers.
Choose a Payment Method that will work with the default Bank Payment type.
|Who usually approves time sheets?||Refers to Time Sheet Approver User ID. Assign a value based on the User that will usually be approving time that will be used in the payroll worksheet.|
|Will all your employees be set up?||Refers to Auto Employee Setup. Choose ‘All My employees’ to have Canadian Payroll attempt to help maintain some basic records such as the Resource, Vendor, and stubbed Vendor Bank Account for the employee.
If your company has process requirements to document each step or perform each step manually, then choose ‘Manual Configuration’.
For more details, see Payroll Service Setup
Choose Next to continue.
Step 3. Hourly Payroll Codes
The next page enables you to set Payroll Codes for hourly employees. There are four pay codes provided by default. Hourly Regular, Overtime, Doubletime and Wages.
To modify an existing pay code, select the row, and edit values for Work Type Code, Paycode, Default Rate, Rate Overrides, and Show in Worksheet, which lets you choose how it is displayed on the Payroll Worksheet page.
Note: Currently we do NOT support multiple General Ledger accounts for Wages Expense accounts. In the example, all Wages are expensed to 62100.
To create a new Payroll Code, choose an empty row, and enter new values for the record. For more details, see Hourly Paycodes.
Choose Next to continue.
The following table provides information on the fields and requirements for those fields.
|Paycode||Case sensitive paycode to use.|
|Work Type Code||The Work Type is used on NAV time sheets.|
|Default Rate||This rate will be used to calculate the gross wage for hourly employees if no specific rate has been defined for a pay code.|
|Rate Overrides||A lookup to specific rates.
To define employee specific rates, choose the ‘Employee Rates’ action.
|Show in Worksheet||When set to ‘Hidden’, the pay code will not be available as a column in the payroll worksheet and can only be viewed in the sidebar or edited in the ‘Income Details’ action on the Payroll Worksheet.
When set to ‘Show Hours’, an editable column on the worksheet will show available hours.
When set to ‘Show Wages’, a read-only column on the worksheet will show the calculated wages by the pay code.
When set to ‘Show Hours and Rates’ an editable column for hours will be visible on the worksheet, and a read-only value showing the breakdown for the wages for that pay code.
|Global Dimension Code 1||The default Global Dimension 1 Code to use. This is typical “Department” by default.|
|Global Dimension Code 2||The default Global Dimension 2 Code to use. This is typically “Project” by default.|
|Expense Account||Expense account for the wage type|
|EI Benefit Income||Whether the pay type is EI Insurable|
|CPP Benefit||Whether the pay type is CPP Pensionable|
|Income Type||Which type of income the pay code is: Wages, Pension, Vacation Pay, Bonus, Retroactive Pay or Commission|
|Information Type||T4, RL1 or Not Applicable|
|T4 Other Information||Whether and which Other Information Code should apply to the Pay Type|
|T4A Other Information||Whether and which Other Information Code should apply to the Pay Type|
|Available for Calculation||Automatic or Unavailable|
|RL1 Box||The RL1 Box for the values to report to, if applicable|
|RL1 Other Information||The Other Information code that applies to this type if applicable|
|QPP Pensionable||Whether QPP applies to the Pay Type|
|QPIP Insurable||Whether QPIP applies to the Pay Type|
The Pay Code Income Types of Wages, Pension, Vacation Pay, Bonus, Retroactive Pay, and Commission are all taxed differently when passed to the tax engine.
|Income Type||Tax Method|
|Wages||Normal as per CRA|
|Pension||Pension as per CRA|
|Vacation Pay||Vacation as per CRA|
|Bonus||Bonus Tax Method|
|Retroactive Pay||Bonus Tax Method|
|Commission||If TD1X form has been completed **|
Note: No tax will be deducted from Commission if a TD1X has been completed and filed. If no TD1X form has been completed, refer to the additional documentation on Commission Payments.
Step 4. Accounts and Deductions
Payroll Deductions, Reimbursements, Benefits, and Other information are the next for set up.
Standard deductions in Canada are automatically created. Each deduction can have an expense account and liability account defined.
For more information, see Deductions.
|Pay from Bank No.||Choose the bank account to pay your employees from.
This is mandatory information, and will be used on the Payroll Worksheet to estimate net balance, and will be used on the Payment Journal as the bank account to pay from.
Important: When you change the Pay from Bank No., then it will also change the Bank on the Payroll associated General Journal Batch.
|Wage Expense Account No.||Choose the wage payroll expense account that wage expenses should be recorded against.|
|Accrual Account No.||Choose the wage liability account. Note that this must match the account defined for the vendor posting group that is defined on the employee associated vendors.
When you change this value, the default Payroll vendor posting group will automatically get updated.
|Code||The code to use.|
|Description||A configurable description for the deduction.|
|Type||The type of deduction.
For special mandatory deductions, such as CPP and EI, there will only be one entry.
|Category||Whether this is a deduction, taxable benefit, reimbursement, or other payment.|
|Expense Account No.||Optional.
Which expense account to use.
When you define this field then the employer amount will be summed and transferred to journals.
If you omit this, then no expense entry will be created in the general journal when transferring payroll to journals.
|Liability Account No.||Optional.
This defines which liability account to use.
When you define this field then a liability journal entry that sums the employee amount and the employer amount will be created when transferring payroll to journals.
|Show in Worksheet||When configured to ‘Hidden’, the deduction will not show on the worksheet, but will still be calculated.
When set to ‘Visible’, the deduction will show on the payroll worksheet.
|Global Dimension 1 Code||The default Global Dimension 1 Code to use. This is typical “Department” by default.|
|Global Dimension 2 Code||The default Global Dimension 2 Code to use. This is typically “Project” by default.|
|Employee Custom Calc Amount||Only applicable when the ‘Type’ field is set to ‘Custom’.
The employee amount on the deduction detail entry will be calculated as
(Gross Pay * Employee Custom Calc Percentage) + Employee Custom Calc Amount
|Employee Custom Calc Percentage|
|Employer Custom Calc Amount||Only applicable when the ‘Type’ field is set to ‘Custom’
The employer amount on the deduction detail entry will be calculated as
(Gross Pay * Employer Custom Calc Percentage) + Employer Custom Calc Amount
|Employer Custom Calc Percent|
|Applies To||Provides the ability to restrict this deduction to everybody, specific profiles, common employee groupings or specific profiles|
|Applies to Reference||Who the deduction applies to is specified|
|Information Return||Whether the deduction type should be included in a T4 or T4A|
|T4 Other Information Code||Whether and with T4 Other Information Code applies to the deduction type|
|T4A Other Information Code||Whether and which T4A Other Information Code applies to the deduction type|
|EI Benefit||Whether the deduction type is included in EI Insurable earnings|
|CPP Benefit||Whether the deduction type is included in the CPP Pensionable earnings|
|CRA Number||The Canada Revenue Agency number|
|RL1 Box||The RL1 box for the values to report to, if applicable|
|RL1 Other Information||The Other Information Code or Box that applies to the type|
|QPP Benefit||Whether QPP applies to the benefit type|
|CPP Benefit||Whether CPP applies to the benefit type|
Choose Next to continue.
Step 5. Confirmation
The final page of the Payroll Setup Wizard displays a message confirming that the setup process is complete, and that you need to configure Payroll details for all employees on the first Payroll Run.
Choose Finish to close the wizard.