Northwest Territories Payroll

Northwest Territories Provincial LCP

The LCP program has been restored, although most employees probably will not use it.

If some of your employees get a credit for the labour-sponsored funds tax credit (LCP), you must create a tax item for their LCP credit. To do that, follow these steps:

1. Choose Payroll Setup from the Costs menu, and choose Tax Items.
2. Click the New button.
3. Call the Tax Item "NWT LCP" plus the employee's name.
4. Click on the Calculation Method popup field and choose Direct Dollars.
5. Type in the amount of the credit-- take the smaller of $29,250 or 15% of the purchase value of approved labour-sponsored venture capital corporation stock, and divide by the number of pay periods in the year.
6. Enter Employee Credit into the Tax Type popup field.
7. Click OK.

You'll also need to assign the LCP credit to the employee. follow these steps:

1. Choose Payroll Setup from the Costs menu, and choose Tax Packages.
2. Click the New button.
3. Put a checkmark next to each tax that applies to the employee (including the LCP).
4. Click OK.
5. Open the Payroll tab on the left, and choose Employees.
6. Locate the employee account record.
7. Click the Payroll Setup button.
8. Enter the package that you just created into the Tax Package field.
9. Click OK.

If different employees take a different LCP credit amount, then each one will require a separate tax item, and a tax package that includes their credit.

HINT: Use the Duplicate button in the Tax Item List window to duplicate the first LCP tax item, and change the amount. Then, create tax packages for each employee (use the Duplicate command) and select the matching LCp Tax Item for each employee.

Provincial Tax Info

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