In September 2021, three (3) new income codes for Indigenous employees were added to the standard list of income types within Wagepoint. These include:
- Overtime (Indigenous)
- Regular pay (Indigenous)
- Vacation pay (Indigenous)
The codes are available to all Canadian employers and can be easily added in the same way as all other income codes (Commission, Bonus, etc.) Please follow these steps:
- Navigate to Company > Income types > “Add an Income”.
- Select the appropriate income code from the “Income type” drop-down menu.
- Click “Save”.
- The Indigenous codes should be used in place of regular codes of the same name when the intention is a tax-exempt payment. For example, the “Regular pay (Indigenous)” code will behave differently for tax purposes than the “Regular pay” code.
- By default, all three codes are exempt from Federal and Provincial income taxes and Canada Pension Plan (CPP). If you wish to modify this – for example, to provide employees with an option to “opt in” to CPP – please get in touch with our team and we’ll be able to create an additional income code to make this possible.
- All income will still be subject to Employment Insurance (EI).
- All Indigenous codes will report to Box 71 on tax forms and will not be shown in Box 14. For employees working in Québec, this information will be entered on the RL-1 slip under Box R, Code R-1.
- Currently, the “Vacation (Indigenous”) code will NOT accrue leave. We are working to add this function in the future.
Please let our team know if you would like to see additional income codes for Indigenous employees added to this list, or if you need help using the above codes. You can reach us by submitting a ticket within Wagepoint, or by email at email@example.com.