Hi,
I have setup a new UNION Deduction code under CDN Payroll, with the Futher Identification type to "Union Dues" and set the "Before Tax Deduction" to YES.
When I proceed a payroll I have value under the T4 box 44 and R1 box F.
PROBLEM: The Federal Tax give me different amount if I include or exclude the UNION Deduction !!!
UNION deduction should not change the TAX.
Any idea why?
Thank you
Guy
*This post is locked for comments
Thank you Jeffrey for your precious help.
Guy
Hi Guy
That's the way it looks. Union dues (and professional fees) are deductible and reduce your taxable income.
The program is forcing this so that the union dues are deducted before the tax is calculated.
If you want it the other way, then at T4 processing time you would have to manually add the amount to Box 44 for each person.
Thank you Jeffrey,
By saying YES the Fed Tax is lower.
Would you say, that the program is built to offer the employee the privilege of getting reimbursement on each pay check for the union deduction part, instead of waiting year end income tax?
Guy
Hi Guy
I have done a bit of digging and apparently T4 Box 44 will only be updated if you have the Before Tax Deduction set to YES.
This is the functionality in the software and I believe in most cases Union dues would be deducted before tax.
If you don't want it to calculate this way, then you can always manually update each employee's box 44 on the T4
UNION Screen shot
Hi Guy
On the deduction paycode window, the field for Further Identification, do you have it set as Union Dues?
Can you post a screen shot of the union dues deduction paycode setup?
Yes I did Jeffrey the T4 is set,
The R1 for QC do calculate right value with no Tax and do appear on the R1 employee Card !!!
Guy
Hi Guy
Make sure the Slip type is set to T4 and not T4A
Thank you Jeffrey for your quick response,
I want the Tax to be calculate on 1000$ so I set the Tax deduction to no, But this setup do not give me any value on the T4 box 44 at the employee card!!!
Guy
Bonjour Guy
The setting on the Deduction code Before Tax Deduction drives whether the deduction is performed before or after the tax calculation.
Example Gross $1000 union dues $100
If you have before tax deduction yes, then $1,000 - 100 = $900 subject to tax
If you have the before tax deduction set to no, then tax is calculated on $1,000 and the union dues will be deducted along with the tax QPP, EI to give you the net pay.
#1
André Arnaud de Cal...
292,516
Super User 2025 Season 1
#2
Martin Dráb
231,321
Most Valuable Professional
#3
nmaenpaa
101,156
Share
Report
All responses (
Answers (
