Preparing T4 and RL-1 Slips for a Native American Employee

Printable Version

Objective

There are certain particularities when the T4 and RL-1 forms must be generated for a Native American employee who practices their trade in a reserve, whether it be full or part time. Indeed, the employment income portion specific to the work done on a reserve must appear in different boxes than the ones normally used. More precisely, this income must be entered in box 71 in lieu of box 14 for T4 slips (federal) and in box R in lieu of box A for RL-1 slips (provincial).

This document explains how to perform the box redefinition necessary to the production of tax slips in maestro* for a Native American employee, in order to display the correct employement income in the right boxes.

For more information concerning this specific situation and Revenu Québec's guidelines, please take a look at the following website:

https://www.revenuquebec.ca/en/businesses/source-deductions-and-employer-contributions/filing-rl-slips-and-the-rl-1-summary-general-rules/rl-1-slip-employment-and-other-income/how-to-complete-the-rl-1-slip-based-on-an-employees-situation/indian-employees/

 

 

Prerequisites

 

Summary

 

Steps

 

maestro* > Time Management > Payroll > T4 and RL-1 > Print T4 and RL-1 > Redefine Boxes

 

Redefine Boxes for a Native American Employee

T4 Form

  1. In the Redefine Boxes window, Filters / Default Values section, select the T4 Form using the scroll-down menu.
  2. In the Province field, select Québec.
  3. If a work category has been created for Native American employees and 100% of the work done by those employees has been performed on a reserve, enter this category in the field to this effect.

 

If no work category has been created for Native American employees, or if they do not all perform the same portion of work on a reserve, it will be necessary to redefine the boxes of all Native American employees by creating individual lines for each of them in the breakdown grid.

 

In the Details tab of the breakdown grid:

Start by completing the first line.
  1. Start by selecting the 14 - Employment Income box in the in first column.
  2. Select the Province.
  3. Then select the Work Category or enter the Employee Number.
  4. In the Formula column:
  • If 100% of the employee's work has been performed on a reserve, enter "" (double quotation marks);
  • Otherwise, enter SBFED - the amount corresponding to the part of the income made on a reserve, for example SBFED-34500.

 

Then complete the second line.
  1. On the second line, select Additional Box D in the Box column.

 

If additional box D is already in use, choose another available additional box (either A, B, C, D, E, or F).
  1. Select the Province.
  2. Then select the Work Category or enter the Employee Number.
  3. In the Formula column:
  • If 100% of the employee's work has been performed on a reserve, enter SBFED;
  • Otherwise, enter the amount corresponding to the part of the income made on a reserve, for example 34500.
  1. On the same line, in the Additional Box No. column, enter 71.

 

If 100% of the employee's work has been done on a reserve and the employee is also exempt from the Quebec Pension Plan (RRQ) / Canada Pension Plan (CPP), complete the third line.
  1. On the third line, select 28 - EI Exempt in the Box column.
  2. Select the Province.
  3. Then, select the Work Category or enter the Employee Number.
  4. Enter X in the Formula column.
  5. Click the Save icon.

 

RL-1 Form

  1. Still in the Redefine Boxes window and Filters / Default Values section, select the RL-1 Form using the scroll-down menu.
  2. In the Province field, select Québec.
  3. If a work category has been created for Native American employees and 100% of the work done by those employees has been performed on a reserve, enter this category in the field to this effect.

 

If no work category has been created for Native American employees, or if the latter do not all perform the same portion of work on a reserve, it will be necessary to redefine the boxes of all Native American employees by creating individual lines for each of them in the breakdown grid.

  1. In the Details tab of the breakdown grid:
Start by completing the first line.
  1. Start by selecting A - Employment Income in the first column.
  2. Select the Province.
  3. Then select the Work Category or enter the Employee Number.
  4. In the Formula column:
  • If 100% of the employee's work has been performed on a reserve, enter "" (double quotation marks);
  • Otherwise, enter SBRBO - the amount corresponding to the part of the income made on a reserve, for example SPRBO-34500.

 

Then complete the second line.
  1. On the second line, select R - Income situated in a reserve in the Box column.
  2. Select the Province.
  3. Then select the Work Catagory or enter the Employee Number.
  4. In the Formula column:
  • If 100% of the employee's work has been performed on a reserve, enter SBPRO;
  • Otherwise, enter the amount corresponding to the part of the income made on a reserve, for example 34500.

 

Finally, complete the third line.
  1. On the third line, select Comment 1 in the Box column.

 

Use Comment 2, 3, or 4 if Comment 1 has already been used for your company.

  1. Select the Province.
  2. Then select the Work Category or enter the Employee Number.
  3. In the Formula column, enter the same code or amount as on the previous line.
  4. On the same line, in the Additional Box No. column, enter R-1.
  5. Click the Save icon.
  6. Click the Quit icon.

 

During the Data Generation, maestro* will use the newly entered values in the Redefine Boxes option to generate the T4 and RL-1 slips.

 

When boxes are redefined, it is essential to generate the data again to ensure maestro* takes the redefinition into account.

 

 

On the Employer's Summary report, the amount of the R - Income situated in a reserve box will be added to the amount in box A - Employment Income for the calculation of the total payroll, which will be used to determine the contribution rate to apply to the calculation of the Health Service Fund (FSS) contribution.

 

See Also

 

Last modification: December 20, 2024