Treatment flags in plain words

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What this does

Each pay item has boxes that say how the pay is taxed and what contributions apply. This article explains each box.

Income tax. Choose one:
- Taxed every pay. Spread over the year, like normal pay.
- Taxed as a bonus. Taxed on its own so it is not over-taxed.
- Lump-sum tax rates. Flat CRA rates.
- Not taxed. For reimbursements.
CPP/QPP contributions. Pension plan contributions are taken on it.
EI and QPIP premiums. Employment Insurance and Quebec parental insurance premiums are taken on it.
Vacation pay base. Vacation pay is earned on it.
Entered as hours. You enter hours. They are paid at the employee's hourly rate times the multiplier.
Rate multiplier. 1.5 for time and a half, 2 for double time.
Insurable hours. Its hours count on the Record of Employment.
Record of Employment allocation. See Vacation pay base, ledger account and ROE allocation.

Taken before tax. Lowers the income that tax is worked out on, as pension plans, RRSPs and union dues do.
In Quebec. Quebec treats some deductions differently. For example, union dues are a tax credit there, not a deduction. Choose Same as federal, Before Quebec tax or After Quebec tax.
Order. Lower numbers come off first.
Court order or garnishment. Required by law. It comes off first, provincial limits protect part of net pay, and it needs a payee.
Employer can contribute. Lets an assignment add the employer's own share, such as an RRSP match.
Annual limit. Stops for the year once this much is taken. Whole dollars. Blank means no limit.
Usual payee. Who the money is sent to, such as a court, union or plan.

Paid in cash. Cash benefits are paid out and attract EI. Benefits in kind, such as a car or insurance, are taxed but not paid out.
Taxable federally. Added to income for federal tax.
Taxable in Quebec. Added to income for Quebec tax. Quebec taxes employer-paid health premiums. The federal government does not.
CPP/QPP contributions and EI and QPIP premiums. Most taxable benefits attract CPP or QPP. Cash benefits attract EI. Most benefits in kind do not.