Purpose
This report provides a quick and easy method of performing mass updatesof Infotype 0463 Federal Tax CA and Infotype 0462 Provincial Tax CA andInfotype 0464 Additional Tax Data CA.
You can use this report to update federal and/or provincial tax creditsfor all your employees or groups of selected employees. You can also usethis report to update the Additional Tax information in Infotype 0464for the new exempt code Provincial Parental Insurance Plan (PPIP).
The following tax update methods are available:

• Federal

Basic personal amount
Indexing
Indexing and adding a constant amount to the indexed amount

• Provincial

Basic personal amount
Indexing
Adding a flat constant amount
The report allows you to update both an employee's Federal andProvincial credits and deductions on Infotype 0463 and 0462respectively; or just only those data specific to either Federal orProvincial changes.

Prerequisites
You have entered the correct Federal (TD1), Provincial/Territorial(TD1xx) and Quebec (TP-1015.3-V) basic personal exemption amounts inview V_T511K. The payroll constants are TX000 for Federalpersonal exemption; TXPxx for Provincial/Territorial personalexemptions (where xx = 2-character provincial/territorial identifier.For example: TD1ON); and TXQC1 for Quebec personal exemption.
If the indexing method is used, the correct Federal,Provincial/Territorial and Quebec indexing factors must be entered inview V_T511K. The payroll constants are IFFD0 for Federalindexing factor; and IFxx0 for Provincial/Territorial and Quebecindexing factors (where xx = 2-character provincial/territorialidentifier. For example: IFON0 specifies the indexing factor forOntario).
To access table view V_T511K, choose System -> Services -> Tablemaintenance -> Extended table maint.

Output
The program displays current credits on the Canadian Taxation infotypefor each employee. Depending on your selected tax update method, thesystem proposes that a new Infotype 0462 and/or 0463 record be created.You can then perform a mass update for the selected employees via batchdata input. To do so, choose Start BDC.

Activities
In the Selection section, specify the employee population forwhich you want to run the report.
In the Tax update selection section
Specify the New IT0462 and/or IT0463's effective date.
If a new Canadian Taxation infotype record is needed, this date will beused.
Select indicator Read tax data prior to effective date if youwant the system to read the records for Infotype 0463 and Infotype 0462on a date, which is prior to the Effective Date. If you do not selectthis indicator, the system reads the latest records for the infotype.
In the Federal section, specify a method for updating the Federalcredit amounts.
Mass update: Take new basic pers. tax credit (TC)
This option updates Infotype 0463 when there is a basic tax exemptionchange. The system checks whether the amount specified in the constantTX000 has changed and triggers an update if necessary.
Mass update: Indexed TC = Indexed TC * Indexing factor
This option updates personal tax credit amounts (Form TD1) in Infotype0463 by applying the indexing factor specified in the constant IFFD0.The amounts subject to indexing are total basic credit amounts excludingthe non-indexing amount.
Mass update: Indexed TC = Indexed TC * Indexing factor + AdditionalAmount
This option updates personal tax credit amounts (Form TD1) in Infotype0463 by applying the indexing factor specified in the constant IFFD0 andthen adding the constant amount to the indexed amount. The amountssubject to indexing are total basic credit amounts excluding thenon-indexing amount.
No update: Keep existing personal tax credits
This option keeps existing personal tax credit amounts (Form TD1) inInfotype 0463 without updating them.
In the Provincial section, specify a method for updating theProvincial and Territorial credit amounts.
Province/Territory
This option specifies all provinces/territories will be considered inthe tax update or groups of selected provinces/territories.
Mass update: Take new basic pers. tax credit (TC)
This option updates Infotype 0462 when there is a basic tax exemptionchange. The system checks whether the amount specified in the constantTXPxx (for a TONI province/territory) or TXQC1 (for Quebec) has changedand triggers an update if necessary.
Mass update: Indexed TC = Indexed TC * Indexing factor
This option updates provincial/territorial personal tax credit amounts(Form TD1xx) in Infotype 0462 by applying the indexing factor specifiedin the constant IFxx0 (for a TONI province/territory) or IFQC0 (forQuebec). The amounts subject to indexing are total basic credit amountsexcluding the non-indexing amount.
Mass update: Indexed TC = Indexed TC + Add. amount
This options performs a mass update to the tax credit by adding a flatamount to the indexed basic personal tax credit.
No update: Keep existing personal tax credits
This option keeps existing personal tax credit amounts (Form TD1xx) inInfotype 0462 without updating them.
In the Additional Tax Information section, specify the option forPPIP exempt code addition.
Mass update: PPIP exempt code addition
This option updates Infotype 0464 when PPIP exempt code has to be addedfor the province.
No update: Keep existing tax information
This option retains the existing additional tax information in Infotype0464 without updating them.
In the Additional options section, specify additional updateoptions you would like to perform.
No update of tax credits for claim 0
Select this option if you do not want to update to the new tax creditamounts for those employees who have claim code 0 (no personal taxcredit amounts claimed).
Clear annual authorized letters of waiver
Select this option if you want to reset the annual authorized federaland provincial credits and deductions.
Update allowed before the latest payroll run
Select this option if you want to perform an update to the CanadianTaxation Infotypes 0462 and/or 0463 in a period where payroll hasalready run. This will trigger a retrocalculation the next time payrollis run.
If you do not select this option and try to update a period wherepayroll has already been run for some employees, these employees will berejected from the update.
Create BDC session in the background
Select this option if you want to execute the tax update utility in thebackground. You must provide a name for the batch input session (SM35)to be created. You can later run transaction SM35 to perform the taxupdate to Infotype 0462 and/or 0463.
Choose Execute.