payroll tax on travel

  • 18 April 2024
  • 1 reply

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We are testing and hoping to implement the canadian payroll.  So far it is working ok, but we have a situation where we will need to start charging payroll taxes on the distances travelled when the next union agreement is implemented.  we didn’t have to do this before because the amount charged per km was under the limit specified.  The new amount is above that threshold and therefore need to charge the taxes on the amount over the threshold.  How do we go about doing this as we can’t add km on the timecard? whatever process it is to do this, we would have to do it to about 20-30 employees a week.


Best answer by jenniferfriesen66 30 April 2024, 19:43

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During my testing of the Canadian Payroll, I set up a Earning Type Code for the taxable reimbursements with the ‘Amount Based’ selected for the Earning Type Category and the appropriate T4 Box selected. 

To add the amounts to the paycheck, start the Payroll Batch and add in the employees. On the Earning tab, either through manual input or by loading the records from a file, add in the amounts using the Earning Type Code. Complete any other adjustments needed, release the Payroll Batch and complete the payroll run.  


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