This list of frequently asked questions is for existing STE clients to assist in navigating our expanded STE offering in Canada. In addition to this FAQ, we encourage all clients to reference the Canadian STE documentation within Symmetry's Client Support Center. If you have additional questions, feel free to reach out to our support analysts for further assistance.
Support and licensing
Does Symmetry publish release notes for the Canadian STE?
Yes! Symmetry publishes a single set of release notes for the STE, allowing clients to view changes for both Canada and the US. Clients can view historical STE release notes here within the Client Support Center and see all product release notes within the release note index.
If we already have the US STE developed, what is the additional effort to implement the Canadian STE?
The Canadian STE uses the same schema as the US STE API. If you already have an object model that matches our schema, there is no need to make further development changes. The Canadian STE uses the same structure for wage, tax data, and jurisdiction parameters in the schema that are used in the US STE.
Do I need to have an additional license to calculate Canadian taxes?
Yes, in order to calculate both US and Canadian taxes you must purchase a license for both products. On-Premise STE clients will need to get a new license file that includes both US and Canada licenses to replace your current license. STE API clients will receive a new API key.
What is the process to license the Canadian STE if we are current US STE clients?
Contact us! We need to turn on Canadian taxes for your existing account. The Canadian STE uses the same process to set wages, tax data, and jurisdiction parameters as the US STE. Each tax has its own Canadian jurisdiction parameters as well as calculations.
Functionality
Do you support multi-state in Canada?
Yes! The Canadian STE supports multi-province payroll, and benefit deductions, which are similar to the U.S.
How do we know the list of taxes that need to be passed into the STE?
The same process applies to the Canadian STE as the US STE to receive the list of taxes for your taxing scenario (work and home locations). Clients will use the same three steps to determine the correct taxes for Canadian taxes. Read more about Symmetry unique tax IDs for Canada here.
1. Find applicable location codes (/v2/locationCode)
2. Find potentially applicable taxes (v2/setTaxList)
3. Calculate payroll taxes (/payCalc)
Does the Canadian STE always calculate both Federal and Provincial taxes? What if we only want Provincial taxes?
No, the Canadian STE is flexible and clients can specify the specific taxes you want calculated! If you only set the provincial tax using the Canadian STE API, you will receive that specific provincial tax calculation returned.
Location data
Does the Canadian STE use geocoordinates (latitude and longitude) for tax determination?
No, the Canadian STE does not use geocoordinates for tax determination. The engine uses the specific Canadian location code you set based on the work or home location. Read more about location codes in the Canadian STE here.
How do I find the correct location codes for Canada?
The Canadian STE uses the province or territories where wages are earned. Unlike the US STE where the home and work address(s) are mapped to specific location codes and then stored within your system, the Canadian STE uses the province or territory number to derive the location code. Learn more here.
Where can I find the county code for Canada?
There are no county codes for Canada.
Where are the city codes for Canada?
City codes used by the US STE are derived from the United States Geological Survey (USGS). Canada does not have city codes.
Does it matter if the employee is a resident or not resident?
Yes, if an employee works within multiple provinces or territories, the Canadian STE accounts for this difference. Employees can only use the “Total Claim Amount” for the home location. For the work or nonresident location, the “Total Claim Amount” should be set to 0.
That said, there is no difference in the tax brackets between residents and nonresidents who live and work in the same province or territory.
Differences between US and Canadian taxation
Is Canada Pension Plan (CPP) the same as Federal Insurance Contribution Act (FICA)?
No. FICA is Social Security and Medicare while CPP does not include Medicare.
What is needed to enable the STE to compute Canadian taxes for U.S. residents working in Canada?
First, it's important you have an STE license that includes both the US and Canada. After confirming you have the correct setup, you are ready to call the STE and calculate the correct Federal and Provincial taxes. You'll follow the same three steps below to compute the correct taxes for this scenario. Since the US and Canadian versions of the STE use the same object model, you will follow the same steps despite having the employee work across the US/Canadian border.
1. Find applicable location codes (/v2/locationCode)
2. Find potentially applicable taxes (v2/setTaxList)
3. Calculate payroll taxes (/payCalc)
Are Canadian taxes calculated the same way as US taxes?
No. Canadian taxes are calculated differently than income taxes in the US. The STE handles the calculation logic and complexity so you don't have to!
What is the difference between a tax credit in the US and a tax reduction in Canada?
They are one in the same! In the US, we refer to a tax credit as the amount accrued that can be subtracted from the total tax an employee owes. This is referred to a tax reduction in Canada. Below is the formula for determining the final tax amount.
Final tax = calculated tax - approved tax reduction/tax credit
In order to claim a tax reduction in Canada, employees should follow the guidance issued by the Canada Revenue Agency:
"For the employer to be relieved of their obligation to withhold, the employee would have to apply for and get an income tax waiver from the Canada Revenue Agency (CRA)""Submit Form T1213 to your nearest tax centre. Include notes about why you qualify for a reduction and any supporting documents. If you qualify, the CRA will send you a letter of authority."
Documentation: Canada Revenue Agency
Canadian Taxation
What is the Basic Personal Amount?
The basic personal amount is the “Total Claim Amount” found on the TD1 form. When an employee does not have any other deductions in addition to the default "Basic Personal Amount", the "Basic Personal Amount" is used.
Does the STE prorate for CPP and QPP?
Yes. CPP gets prorated for employees younger than 18 and for employees older than 70 years of age. QPP gets prorated for employees over the age of 70.
What is subject wage (you keep saying subject wage)?
Subject wages are income that's subject to tax. In Canada, subject wages are referred to "pensionable wages" for Canada Pension Plan (CPP) and "insurable wages" for Employment Insurance (EI).
Is there functionality in the Canadian STE that allows an an employer disable CPP or QPP deductions for an individual employee?
Yes, an employer can decide to omit CPP and QPP from being deducted in STE calculations. There are two ways to do this:
1. If the employer does not set CPP/QPP at all, the STE will use the default value of 0 in the calculations. Therefore, CPP/QPP will not be calculated. When CPP/QPP is needed in calculations (for example, when computing Federal or provincial/territories), CPP/QPP is calculated as 0 and will not get deducted from the employee. In this scenario, the STE will not return CPP/QPP.
2. If the employer sets CPP/QPP to $0 wages and $0 tax, the STE will calculate CPP/QPP as $0 in all related Canadian calculations and return CPP/QPP as $0. In this case, gross wage and gross subject wage would be $0, but the STE will return "Maximum Basic Exemption" of $3,500 as the subject wage. The STE is required to return the exemption amount. This is recommended for exempt CPP employees who are younger than 18 years old or over 70 years old in Canada.
The STE handles age exemptions using the "DATE_OF_BIRTH" miscellaneous parameter. When this is passed in, the STE will automatically look up the pay date and set an exemption regardless of the amount that is set in the pension wage.
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