How to use PDOC – For pensions

Information

Throughout the Payroll Deductions Online Calculator (PDOC), additional information about terms is available through help buttons. If you select a link in the help text, a new browser window will open.

The information on the screens are customized for each province and/or territory.

Step-by-Step Pension Calculation

Welcome Page

The following options are available on the Payroll Deductions Online Calculator landing page:

• Salary
• Commission
• Pension
• Verify CPP contributions and EI premiums

Note: You can only do one type of calculation at a time.

1. Select the "Pension" icon.
2. Select the "Next" button to start a new payroll deductions calculation.

Step 1: Recipient Information

When you select the "Pension" icon, then the "Next" button you will be directed to Step 1 "Recipient information" of the pension calculation.

1. The recipient's name and/or the payer's name are optional fields.

   Note: If you enter the recipient's name, it will be automatically included in the file name when you save the result at the end of the calculation. The application will accept a blank field.

2. Select the province or territory of residence (the location of the recipient's residence). This is a required field.
3. Select the pay period frequency from the list provided. This will help estimate the annual income of the recipient for calculation purposes. This is a required field.
4. Select the date the recipient is paid from the list provided. This is a required field.

   Note: This payment date will determine the recipient's income tax rate in order to generate the deduction result. This date will also be included in the file name when you save the result at the end of the calculation.

5. Select the "Next" button to continue or the "Previous" button to change the type of calculation. All of the information will be carried forward to the applicable screens as necessary.

Note: If the "Province or territory of residence", the "Pay period frequency", and/or the "Date the recipient is paid" fields are not selected, an error message will display after the "Next" button is selected.

Step 2: Pension

Gross Income:

• Enter in this field the pension income amount (without deductions) for the pay period. This is a required field. If you do not enter an amount, an error message will display after the "Next" button is selected.

Select any of the following that apply:

1. Select one or more of the following options for the pay period if applicable. If none of the options apply, do not make a selection on this screen.
   • Annual deduction for living in a prescribed zone
   • Other annual deductions and non-refundable tax credit amounts approved by a tax services office or tax centre
   • Alimony or maintenance payments
   • Tax exempt for employment income situated on a reserve
2. Should one of the 4 options be selected, a new field(s) will be displayed and you will be prompted to enter the required information.
   • If you selected "Annual deduction for living in a prescribed zone":
     • Enter the annual deduction amount for living in a prescribed zone from the employee's federal Form TD1.
   • If you selected "Other annual deductions and non-refundable tax credit amounts approved by a tax services office or a tax centre":
     • Enter the other annual deduction amounts, such as child care expenses and support payments, authorized by a tax services office.
   • If you selected "Alimony or maintenance payments":
     • Enter the payments that are required by a court order and approved by a tax services office.
   • If you selected "Tax exempt for employment income situated on a reserve”:
     • Enter the tax exempt amount from the income entered in “Pension income per pay period”.
3. Select the "Next" button to continue or the "Previous" button to change the information entered in the previous step. All of the information will be carried forward to the applicable screens as necessary.

Step 3: Additional information

TD1 Federal and TD1 Provincial Tax Credit Return:

Apply personal credits by using the total claim amount from the TD1 forms or the claim codes option. If you are using the claim codes option then see the following steps. 

1. Select the range of the total amount claimed on line 13 of federal Form TD1. If you do not select a range, the default will be the range that includes the federal basic personal amount allowed for that year.
2. Enter in the applicable field any additional tax deductions requested by the pensioner from the back of Form TD1.
3. Select the range of the total amount claim from the provincial or territorial Form TD1. If you do not select a range, the default will be the range that includes the provincial or territorial basic personal amount allowed for that year.
4. Select "Calculate" to proceed to the pension deductions result and payer remittances result and/or select "Previous" to change the information entered in the previous step. All of the information will be carried forward to the applicable screens as necessary.

Payroll Deductions Result - Pension

The results for "Pension deductions" and "Payer remittances" are displayed on two separate screens based on the information you entered. You can save and/or print the result.

Pension Deductions Result:

The result is calculated based on the data you entered. Some of the items will be displayed only if an amount has been entered.

Payer Remittance Summary:

This summary provides the combined federal and provincial or territorial tax deductions for remittance.

To print and/or save the recipient (RT) and payer (PR) results in PDF format:

• Select "View results in PDF" on each of the respective result screens. The default name of the file will be: Recipient name-<<RT or PR>>-PDOC-Date paid-YYYY-MM-DD.pdf. 

To print and/or save the combined recipient deduction result and payer remittance summary in PDF format:

• Select "View combined results in PDF" on each of the respective result screens. The default name of the file will be: Recipient name-(RT & PR)-PDOC-Date paid-YYYY-MM-DD.pdf. 

To make changes to the current calculation:

• Select "Modify the Current Calculation" to go back to Step 1, "Recipient Information". Use this button if you want to modify the current calculation. The input fields will retain data.

To do another calculation:

• Select "Next Calculation" to go back to Step 1, Recipient Information". Use this button if you want to do a calculation for another recipient. 

To select a different calculation type:

• Select "Start Over" to go back to the Welcome page. This will clear all the information entered in the previous steps.