CA-PY tax exemption and credit for emergency service volunteers

[Former Member]

Hi SCN Members,

I am trying to figure out how we can account for the tax exemption and credits that the volunteer fire fighters are eligible for. To elaborate the scenario, volunteer fire fighters are eligible for $1000 exemption from total payment/allowances received during the year. Alternatively, they can also claim tax credit on $3000 (15% of that amount=$450) from an year's payment/allowance.

Would appreciate if you can suggest a solution to manage these scenarios in public sector.

Thank you.

[former_member193210 · Accepted solution]

Is the Tax Exemption at the Federal level or at the Provincial level?

Is the Tax Credit at the Federal level or at the Provincial level?

IT0463 has a field for "Total non indexed" Tax Credits (P0463-TNIND), and one for other credits (P0463-OTXCR)

IT0462 has similar fields for Non-Indexed (P0462-TNINP) Tax Credit (P0462-OTXCP)

For our School Counselors, we use a Custom Valuation Base (96) to transfert one third of their "Earnings" into a Non Taxable Allowance WT, through pcr Z015 (probably copied from X015).

[Former Member · Accepted solution]

Thanks Remi.

These are Federal exemption and credits. I was wondering if we could use IT0464 for the purpose of defining the constant and the amount.

Am i given to understand that we would have to create a custom valuation base? I read in another post about special processing class 47 which sounded like it will serve my purpose but not sure though. Thank you for sharing your experience and solution.

[former_member193210 · Accepted solution]

What you read about Processing Class looks to be the easiest way to go, since Pr.Cl. 47 has value F for "Volunteer fireman allowance".

In the Canadian Payroll Schema, pcr KAP0 will look at Pr.Cl. 47, and if the WT has value F it will call pcr KAPF.  This last pcr implies that you have established A0 and A1 relationships in table view V_T51P1 (unless you are dealing with Quebec, whereby the relations are A2 and A3).  Note that the table should contain a sample relationship for A0 (WT M206 to M206) and for A1 (WT M206 to M207).

Had our SAP consultants made us aware of that back in 2000, we probably would have created a Custom Value for Pr.Cl. 47 (for our School Board Trustees/Counselors) instead of a Custom Valuation Basis, since we had to create a Custom variation of pcr KAP0 anyway.

[Former Member · Accepted solution]

Thanks for your detailed response Remi. Now i am more confident to use IT0464 and the way processing class 47 has been advised to use. I will go that way.