Flat Tax Amount

Setting a flat tax deduction requires modification of 2 government statutory deductions, Federal Income Tax and Provincial Income Tax. 

Note that the system is set to calculate both tax types as per government regulations. Modification of these instructions, especially setting to a lower amount, may result in a balance owing upon filing of personal tax claims. 

If you have any questions or concerns before making these adjustments, please give us a call at 1-204-478-3707 or toll free at 1-800-335-0039.

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To set this up in Everest, go to the Employee profile (How do I do this?).

1.   Federal Income Tax

• Click on the Payroll Instructions tab.
• Find the Federal Income Tax payroll instruction, and click Apply Employee Override.
• In the Override Payroll Instruction screen, ensure that both Enabled and Override Default Properties are checked.
• Verify that the Schedule is set to Every pay run (regular and unscheduled pay runs).

Flat Tax can be entered either as a dollar amount, or a percentage to be calculated based on the taxable gross.

	Fixed Dollar Amount	Percentage
Default Value ():	Enter dollar amount without the dollar sign i.e. enter 75.00 for $75.00.	Enter percentage amount in decimal form i.e. enter 0.35 for 35%.
Formula:	[InputValue]	[InputValue]*[TaxableIncome]

 

2.   Provincial Income Tax

Once the desired Flat Tax amount has been set under Federal Income Tax, override the Provincial Income Tax to prevent additional taxes being deducted.

• Click on the Payroll Instructions tab.
• Find the Provincial Income Tax payroll instruction, and click Apply Employee Override.
• In the Override Payroll Instruction screen, ensure that both Enabled and Override Default Properties are checked.
• Verify that the Schedule is set to Every pay run (regular and unscheduled pay runs).

• Under Default Value, enter 0.00.
• Under Formula, enter [InputValue].
• Click Save.