Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2025-05-30
Example: Calculate AD&D with Sales Tax (CAN)

Example: Calculate AD&D with Sales Tax (CAN)

This example illustrates 1 way to define an AD&D plan where there's no cost to the employee but the benefit is taxable to the employee.
The company offers and pays the premiums for accidental death and dismemberment (AD&D) insurance for its employees. The company has offices in, and employs people from, many different provinces including Quebec.
Configure an employer-paid deduction for which the employer taxes employees on imputed income.
  • Set up sales taxes that apply to the company and provinces.
  • Define an AD&D benefit plan.
  • Security:
    • Set Up: Payroll - Company Specific (Taxes) - CAN
       domain in the CAN Payroll functional area.
    • Set Up: Payroll (Calculations - Payroll Specific)
       domain in the Core Payroll functional area.
  1. Access the
    Create Deduction
     task.
  2. Enter these settings:
    Option Description
    Name
    AD&D - Employer Paid [CAN]
    Code
    AD&D_ER
    Country
    Canada
    In order for the calculation to work, you must flag it for use in Canada.
  3. Enter these settings on the
    Effective Dated
     tab:
    Option Description
    Effective Date
    Current date
    Worker Eligibility
    Row 1:
    • Benefits: Employer Cost (taxable) and <> 0
    • Processing Primary Job
    Row 2:
    • Payroll Input Exists for Pay Component
    Calculation
    Original Amount + Sales Tax (CAN)
    Proration
    (Optional) Prorate Using Days Worked
    Retro Calculation
    (Optional) Recalculate during Retro
    Calculation Worktag
    Province
    Worktag Type
    Work
  4. Enter these settings in the
    Related Calculations
     grid:
    Related Calculation
    Groups
    Default Calculation
    Override Calculation
    Results - Display Current / Current and Balances
    Original Amount
    RST Taxable [CAN]
    Select the calculation generating the amount. Example:
    Benefits: Employer Cost
    .
    Display Current
    Sales Tax (CAN)
    Sales Tax on Original Amount (CAN
    Display Current
  5. Enter these settings on the
    Non-Effective Dated
     tab:
    Option Description
    Groups
    • Benefits During Leave
    • CPP Taxable [CAN]
    • CPP2 Taxable [CAN]
    • Employer Paid Benefits [GBR CAN USA]
    • Income Taxable (Withhold Taxes) [CAN]
    • ONEHT Taxable [CAN]
    • QHSF Taxable [CAN]
    • QPP Taxable (CAN]
    • QPP2 Taxable [CAN]
    • Quebec Taxable (Withhold Taxes) [CAN]
    Calculation Details
    Resolve Effective Date
     >
    Based on Period End Date
Workday calculates the
AD&D - Employer Paid [CAN]
 deduction for eligible workers and displays this amount on worker pay results as imputed income for provincial and federal taxation.