AvanTax User Guide
Contents
1. Creating an Employee Record You must create an employee record for each employee to whom a vehicle was made available To do this select the New command from the Employee menu or click on the New icon from within the employee information screen This command will call up the following data input screen EZ AvanTax 2006 Auto Perform Inc HER File Company Employee Vehicles Reports Help kal es Ashton April 4 employees Companies El Employee Information a Ci Get S viel Bi gt 11 Barker Brian Carpenter Carrie Employee file number A123 Department SALES Dolby Daryl Employee name Ashton April Gismo Manufacturing S ON Universal Corporation Province of employment Lal Language E E English y IV Use optional calculation if beneficial Taxable Benefit Current year 2006 1 240 Planning year 2007 620 r Taxable Benefit Per Pay Period 2006 Pay periods 24 Pay periods 21 per year to date Amount for the year all vehicles 1 240 Amount included to date 0 o Amount per remaining pay period 413 26 Open Windows Vehicles Available Returned Employee Information 2003 Audi 01 Jan 03 Print Company Summary Reports Vehicle Information Ashton April Employee File Number This field is optional It is included to allow for distinction between employees other than by name Reports may be sorted by file number You can enter the emplo2. Company Summary Reports window The following paragraphs describe the options unique to the employee detail report window Most of the options are the same as those for the Company Summary Reports Employees The employee selection will allow for the printing of just the current employee or all of the employees for the company If the employee currently listed is not the desired employee simply switch to it using the Select command from the Employee menu Print Election Forms Where the reduced benefit election applies and is determined to be beneficial to an employee and you have indicated on the employee record that the employee will make this election the applicable election form will be printed automatically following the employee s detailed computation if this box is checked Qu bec Employees If there are employees with Qu bec for their province of employment in the current company you will be given the option of printing the federal taxable benefit report alone the Qu bec taxable benefit report alone or both reports at the same time Note For the 2007 taxation year the federal and Qu bec calculations are identical This option is available for future use 8 2 AvanTax User s Guide Data Entry Form This form has been designed to standardize and ease the process of information gathering with respect to automobile taxable benefits It is designed so that all required information to perform the benefit computation is listed
3. of months x cost of the vehicle including PST and GST HST b Employer Leased Car 1 if business use is less than or equal to 50 2 3 of lease costs including GST HST and PST excluding insurance 11 if business use is greater than 50 personal km number of months x 1 667 km x 2 3 of lease costs including GST HST and PST excluding insurance 9 2 AvanTax User s Guide 2 Operating Costs Benefits a if business use is less than or equal to 50 22 multiplied by the number of personal kilometres b if business use is greater than 50 and employee has produced applicable election form prior to December 31st The lesser of the amount computed in a and 50 of the standby charge computed prior to any reimbursements made by the employee 3 Reimbursements a Standby Charge The standby charge benefit determined above is then reduced by all related reimbursements made during the calendar year by the employee to the employer Excess reimbursements with respect to standby charge benefit do not reduce the operating costs benefit and vice versa b Operating Costs Benefit The operating costs benefit determined above is then reduced by all related reimbursements made by the employee to the employer prior to February 15 of the following year However where reimbursements made within the period noted above are equal to or exceed the actual operating costs including PST and GST HST incurred by the employer att
4. 4 2 Reset per km rates to default rates oooocnnocccnonccononccononcnononaconnnanonnnannns 4 3 Company Management 2 rn IE 5 1 Creating a Company Record sen Neue 5 1 Editing Company Iiformation auseaesga ai 5 2 Selecting a Company in 5 3 Eileen 5 3 Employee Management u ana ea 6 1 Creating an Employee Record u suueeueensnheseinsnn lien 6 1 Editing Employee Information oococnnocccnoncccnnannnonncnnnoncnononccnonancnanncnnns 6 3 Seleeting an Employee nassen 6 3 Deleting an Employee au RES 6 3 Vehicle Management netten Bin ine 7 1 Creating a Vehicle Ree rd u usuunaieneensiesh teen 7 1 Editing Vehicle Information a metal 7 3 Deleting a EE 7 3 RP CET 8 1 Company SUMMALICS A A tens Beben 8 1 Employee Detailed Computation ceeeeseesseceseceseeeeseecnaeeneensees 8 2 Data Entry Po o eng 8 3 EE 8 3 vi Automobile Taxable Benefits About the Legislativa 9 1 Ieren 9 1 Computation of Taxable Benefits cic 3 lege ti 9 2 Car Dealerships and Leasing Businesses oooooocccnoncccnonccononccnnncccnnnanonns 9 3 GST HST Computation Reporting and Remittance unen 9 4 OST Reporting un sangen Seege EE 9 5 Data Enttv e messe A 1 Reduced Benefit Election Forint B 1 e ru OT dadas dies C 1 Automobile Taxable Benefits vii CHAPTER 1 Introduction Welcome to AvanTax The AvanTax has been developed by a group of professional accountants with a view to support accountants and other professionals in the tedious ta
5. COLOR 860 ESC P 2 4HP LaserJet 4000 Series PCL 6 on production lt Status Ready Printto file Preferences Location Production Comment HP 4000TN on Production Server Find Printer Page Range e Al Number of copies f C Selection C Cancel You may also select the number of copies to print the default is one When you have entered the desired settings click on OK to save the choices Automobile Taxable Benefits 4 1 Francais English When the program is in the English mode the Francais option will be available from the File menu Selecting 1t will immediately switch all menu options to the French language When the program in the French mode the English option will be available from the File menu Selecting it will cause AvanTax to close When you re open the program it will be in English mode Database Repair The Database Repair routine in AvanTax may be used to recover from certain types of file corruption caused by power failures software problems many hardware problems and most common types of operator errors However certain situations such as physical damage to the data storage media hard drive or disks or inadvertent erasure of files cannot be rectified by this routine The Repair Database routine should be run if you get an error message about a corrupted database AvanTax will check the database structure execute low level repair fix any null values and
6. This form questionnaire can be printed with some basic information such as the employee name and vehicle description or a blank form can be printed Mileage Log The mileage log can be printed and distributed to employees to track their personal mileage It can be printed with the employee name and vehicle description or a blank form can be printed Reports 8 3 CHAPTER 9 About the Legislation Definitions The Canadian Income Tax Act ITA Excise Tax Act GST Qu bec Taxation Act QTA and Qu bec Sales Tax Act QST have their own definitions for certain common terms The following definitions found in this legislation will be relevant in determining the requirements to compute the taxable benefit and or remit applicable GST HST Automobile That term will generally include motor vehicles that are designed or adapted to carry individuals on highways and streets and have a seating capacity for not more than the driver and eight passengers The following vehicles are excluded from the definition of automobile e ambulance e taxi bus or e funeral hearse Van and pick up trucks are also excluded in the following circumstances a The seating capacity is limited to the driver and two passengers and it is used primarily generally understood to be more than 50 for the transportation of goods or equipment in the course of business or b The seating capacity is not limited but its use is all or substantially al
7. and any other communications by ELM its authorized dealers agents and employees concerning the subject matter hereof No dealer distributor agent or employee is authorized to make any modification or addition to this Agreement and this Agreement cannot be modified except by a written document signed by a duly authorized officer of ELM This Agreement will be governed by the laws of the Province of Ontario Any questions regarding this Agreement or the program including the return of defective media should be addressed to ELM Computer Systems Inc 502 Gordon Baker Road North York Ontario M2H 3B4 416 495 1624 Automobile Taxable Benefits v TABLE OF CONTENTS Introduction zu 2 2 2 Hameln 1 1 Welcome to Avan Tax rn 1 1 Technical er eeens Ne 1 1 Getting Started siii en ten 2 1 Hardware Requires ai dais 2 1 Installns ata 2 1 Network Installation A ehr 2 1 Starting Avan PAK E aid 2 2 KSE 2 2 Choosing French or English aaa 2 2 Men s e seen Gent ic 3 1 Main Ment iii id 3 1 Company Employee Selection Window oocooccnnocinoccnoncnnnnnconncconcnnnnos 3 1 SUD MENUS a A E ee ao ana eae 3 2 Tool Barlcons 22s ts eased la 3 3 File Menu Command ees 4 1 Printer SUD dd 4 1 o aa essen nies 4 2 Database Re Da EEN 4 2 Bring Forward Previous Year s Data 4 2 Copy Current Year Data to Planning Near 4 2 Change Authorization Numbers ld e 4 2 Set per km rates for operating cost benefit oooooococnoncccnoccccnoncconanccnnnos
8. compact the database Any data that cannot be fixed will be discarded You will be informed when the repair is complete TIP It s a good idea to back up your database before attempting to repair it To do this exit the AvanTax program locate the file AVT2007 MDB in your program directory and make a copy of it Bring Forward Previous Year s Data This function locates an AvanTax database from the previous year and copies it to the current year database completely overwriting the current year database Copy Current Year Data to Planning Year Use this function to copy the usage data you have entered for the current year to the planning year for all vehicles that are still available at the end of the year i e the Date Returned box is blank The total kilometres personal kilometres and optionally the reimbursements will be copied Change Authorization Number To change from a single user to a network version of AvanTax or visa versa you will need to enter a different authorization number Select Change Authorization Number from the File Menu to delete the authorization number that is currently in use Then exit the program The next time you start AvanTax you will have the option to register the program Enter the new authorization number at this time Set per km rates for operating cost benefit 4 2 Automobile Taxable Benefits Select this function from the File menu to change the rate at which the operating cost benefit is
9. 007 e E Acquisition cost GST PST S Usage and Reimbursements Date available 01 Jan 2003 Date returned Number of days available Open Windows 2 E Total kilometres driven Vehicle Information Ashton April B 5 Employee Information Personal kilometres driven Reimbursements re standby charge Reimbursements re operating cost Actual operating cost Description and Serial Number This information is used to identify the vehicle The description will appear on the employee s information screen and on printed reports You may be as specific as you require Vehicle Cost You must identify whether the automobile is owned or leased as this will affect whether the acquisition cost or the leasing costs will be used in the calculation of the taxable benefit In either case you will be prompted to input the correct value and the related taxes Employee Management 6 1 TIP All costs are to be input excluding GST HST and PST QST The taxes must be input separately or you may click on the Calculate Tax button to have the system calculate the tax at the rate appropriate for the employee s province of employment Note that for purchased vehicles the GST rate may be overridden to reflect the GST rate at the time the vehicle was purchased This is to accommodate possible mid year changes to the GST rate such as happened on July 1 2006 With respect to leasing costs you may insert the total lea
10. Company Summary reports and the Employee Detailed Computation You may also print data entry forms and mileage logs which can be used to collect the necessary data See Chapter 8 Reports for further information Help The Help menu allows you access to the help files Contents will display a table of contents of all the help titles The Search for Help On command will allow you to enter a word or phrase to search for in the help files To access help about the window you are currently working in press the Fl key If context sensitive help exists for that window it will appear The About command displays information regarding your AvanTax software including the version number of the software you are currently using and your authorization number This window also has a System Info button which reports 3 2 Automobile Taxable Benefits the hardware and software available on your computer You could be asked to access this information by the technical support staff were you to require technical assistance Tool Bar Icons Each screen has a number of icons in the tool bar for quick access In each case there is a corresponding keyboard short cut also available The following is a description of the function of these icons k Z Ctrl N Creates a new record of the type indicated at the top of the window Company employee or vehicle E Save Ctrl S Saves the record currently displayed amp Print Ctrl P Accesses th
11. ELM Computer Systems Inc Automobile Taxable Benefits Software 2007 Version Calculate automobile taxable benefits and related GST and QST in minutes Automobile Taxable Benefits Software ii Automobile Taxable Benefits IMPORTANT DISCLAIMER This publication is sold with the understanding that the authors and editors are not responsible for the results of any actions taken on the basis of information in this work nor for any errors or omissions and the publisher is not engaged in rendering legal accounting or other professional services The publisher and the authors and editors expressly disclaim all and any liability to any person whether a purchaser of this publication or not in respect of anything and of the consequences of anything done or omitted to be done by any such person in reliance whether whole or partial upon the whole or any part of the contents of this publication If legal advice or other expert assistance is required the services of a competent professional person should be sought This manual is copyrighted by ELM Computer Systems Inc All Rights Reserved Under the copyright laws this manual may not be copied in whole or in part without the written consent of ELM Computer Systems Inc Under law copies cannot be made for others whether sold or not Copying includes translating into another language Copyright 1992 2007 All Rights Reserved by ELM Computer Systems Inc AvanTax is a tradema
12. OK button Deleting an Employee If you select the Delete command in the Employee menu a verification message will be displayed requesting your confirmation to delete the employee record Employee Management 6 3 Once that process is activated all of the information for the employee and all of the vehicles for that employee will be deleted You can also delete an employee record by clicking on the delete icon from the tool bar at the top of the Employee Information screen Again you will be asked to confirm the deletion before AvanTax will permanently erase the record 6 4 AvanTax User s Guide CHAPTER 7 Vehicle Management Creating a Vehicle Record Each employee should have a separate vehicle information record for each vehicle they had access to during the course of the year To create these records select the New command from the Vehicle menu This will create a vehicle information record which will be associated with the current employee The following data input screen will appear L AvanTax 2006 Auto Perform Inc File Company Employee Vehicles Reports Help kel P Ashton April 4 employees S Companies Y Vehicle Information Ashton April CAME olal nal m ll In Barker Brian tae Gage Cade Description 2003 Audi Dolby Daryl Serial number Gismo Manufacturing Universal Corporation Vehicle Cost Peers Current year Planning year I Vehicle is leased Calculate Tax 2006 2
13. any Summaries After selecting Company Summaries from the Reports menu the Company Summary Reports window will open ZA AvanTax 2006 Auto Perform Inc HER Eile Company Employee Vehicles Reports Help kal Ashton April 4 employees f F Companies SW Print Company Summary Reports Auto Perform Inc Provinces A Selected Company Barker Brian Auto Perform Inc All provinces Carpenter Carrie Select y Dolby Daryl Gismo Manufacturing Taxation Year Departments Universal Corporation d amp nt year 2006 e All departments 7 Planning year 2007 Enter ll Sort Employees By Reports to Print Name F Taxable Benefits Summary C File number I Employee Vehicle List C Province name I Taxable Benefits per Pay Period C Department name I Remittable G S T C Purchase lease cost fis t I Combine vehicles where possible HP LaserJet 4 Plus LPT1 Print Preview Printer Setup Close Open Windows Print Company Summary Reports Vehicle Information Ashton April Selected Company The name of the current company will appear in the Selected Company section If the company currently listed is not the desired company simply switch to it using the Select command from the Company menu Provinces Generally you would leave this setting set to All Provinces However in some cases where you have companies with employee in more than one province you may wish to produce reports
14. ation Generally the amount of the net remittable GST with respect to a particular employee will include 5 105 4 104 for 2008 of the standby charge before deducting reimbursements and 4 3 for 2008 of the operating costs benefit also before deducting reimbursements For HST provinces the prescribed rates are 13 113 12 112 for 2008 of standby charge and 10 9 for 2008 of operating costs benefit Liability In all situations the employer has to remit the amount of the GST HST included in the taxable benefit except in the following circumstances under which an employer will not have claimed an input tax credit ITC on acquisition or lease of the automobile a the employer acquired the automobile in 1991 and was not allowed to claim an input tax credit as a result of section 170 of the GST HST b an election not to claim an ITC was made by the employer pursuant to amended section 173 2 of the GST This election is available to employers other than financial institutions who lease an automobile and the automobile is not used primarily in commercial activities or employers who are financial institutions who acquire or lease an automobile c the employer is an individual or partnership and the automobile is not used 90 or more in commercial activities and d the employer is not an individual partnership or financial institution and the automobile is not used primarily more than 50 in commercial activities Timing of Reporti
15. bly Daryl ON SALES D913 24 21 138 0 46 COMPANY TOTALS 1 701 0 567 C 2 AvanTax User s Guide Employee and Vehicle List Taxation Year 2006 Company Auto Perform Inc including taxes Employee Name File Vehicle Total Total Pers Reimb Reimb Actual No Description Cost y Km Km S C O C O C Prov Dept Ashton April 2 950 ON SALES Barker Brian ON SALES Carpenter Carrie Cadillac ON ADMIN Chevrolet Dolby Daryl Dodge ON SALES C 3 Appendix C Net Remittable GST HST Re Automobile Taxable Benefits Taxation Year 2007 Company Auto Perform Inc before reimbursements Employee Name Standby Oper Tax Included In Total Prov Dept File No Charge Cost S C O C Tax Incl Ashton April 1 260 502 71 25 96 NF SALES A123 Barker Brian 535 213 30 11 41 NF SALES B053 Carpenter Carrie 667 266 38 13 51 NF ADMIN C384 Dobly Daryl 528 210 30 10 _40 NF SALES D913 COMPANY TOTALS 2 990 1 191 169 59 228 Net Remittable QST Re Automobile Taxable Benefits Taxation Year 2007 Company Auto Perform Inc before reimbursements Employee Name Standby Oper Tax Included In Total Prov Dept File No Charge Cost S C O C Tax Incl Ashton April QC SALES A123 1 575 354 110 20 130 Barker Brian QC SALES B053 669 150 47 9 56 Carpenter Carrie QC ADMIN C384 869 195 61 11 72 Dobly Daryl QC SALES D913 659 148 _ 46 _ 8 _ 54 COMPANY TOTALS 3 772 847 264 48 312 C 4 AvanTax User s Guide F
16. calculated You can accept or edit the default rate for the standard rate or the leasing business rate for both 2007 and 2008 Reset per km rates to default rates Use this function of the File menu to reset the per kilometre rates to the prescribed rates for standard companies and auto dealerships leasing businesses Automobile Taxable Benefits 4 3 CHAPTER 5 Company Management Creating a Company Record You can enter as many company records as you require To create a new company record select the New command from the Company menu or click the New icon from within the company window EZ AvanTax 2006 Auto Perform Inc Eile Company Employee Vehicles Reports Help lbs ES Ashton April 4 employees F Company Information Companies Auto Perform Inc ea Deals tle m lal o Barker Brian Carpenter Carrie File number Dolby Daryl Name Auto Perform Inc Gismo Manufacturing Universal Corporation Address 55 Bloor Street City Toronto Province ON y Postal code M3H 4N8 Language E F English Pay periods per year 24 I Auto dealership or leasing business Pay periods to date 2006 21 Pay periods to date 2007 0 Open Windows Company Information You may now insert specific information with respect to the employer Company File Number This field is optional and is used internally for identification purposes only The number will not a
17. creen will be used as the default value for any new employees added to the company Car Dealership Where the employer operates a car dealership or leasing business you should check the auto dealership check box This will ensure that salespersons or leasing agents taxable benefits are properly computed see Salesperson on page 6 2 Average Cost Once you have indicated that an employer operates a car dealership or leasing business you will be able to enter the average cost applicable to computations of taxable benefits for salespersons leasing agents see Car Dealerships and Leasing Businesses on page 9 3 The average cost will be automatically inserted as the vehicle cost applicable to salespersons when completing the vehicle description for these employees Note that the average cost must include GST HST but PST is not applicable AvanTax allows you to insert the average costs with respect to the current year and next year the planning year At the beginning of the planning year you should insert your estimated average cost for the year This will allow you to calculate per pay period estimates for next year The average cost box can only be accessed if the company is an auto dealership or leasing business Otherwise the actual cost of the vehicle is used in all calculations The actual cost of the vehicle is entered on the Vehicle Information screen Editing Company Information After a company record has been created th
18. d planning years There will also be a column for the Qu bec taxable benefit if applicable If the Show Combined Vehicles box has been checked the taxable benefit for the combined vehicles will be displayed beside the value for the current vehicle Enter the number of pay periods to date if different from the default value entered on the company information screen along with the amount included to date AvanTax will then calculate the amount of benefit per remaining pay period Editing Employee Information After the employee record has been created the employee information can be edited at any time Simply select the Edit command from the Employee Menu The employee information screen for the current employee will appear You can switch between employees using the arrow icons in the tool bar Selecting an Employee Although you can enter as many employees as you desire you are only able to access one employee at a time The name of the current employee will always be displayed beside the tool bar at the top of the main AvanTax window along with the total number of employees entered for the current company To switch to another employee choose the Select command from the Employee menu This will open an alphabetic list of the employee names You can also see the list by simply clicking on the current employee name Highlight the desired employee name using the mouse or the cursor arrow keys Then either hit the Enter key or click on the
19. e Print Reports window Le Company Alt C E Opens the Company information window for the current company If there are no companies in the database a new company information record will be opened A Employees Alt E E Opens the Employee information window for the current employee If there are no employees for the current company a new employee information record will be opened SS Vehicles Alt V E Opens the Vehicle information window for the current employee If there are no vehicles for the current employee a new vehicle information record will be opened Mi Delete Ctrl D Deletes the current record You will be asked to confirm that you wish to delete the record 1 First Ctrl F Moves to the first record Automobile Taxable Benefits 3 3 ER Previous Ctrl lt Moves to the previous record gt Next Ctrl gt Moves to the next record NM Last Ctrl L Moves to the last record 3 4 Automobile Taxable Benefits CHAPTER 4 File Menu Commands Printer Setup To choose a printer select Printer Setup from the File menu A Print window will open listing the printer currently selected You may choose a different printer by clicking on the current printer name and selecting from the list that appears If an appropriate printer is not listed you will need to add the printer to the list using the Windows control panel 2 Print General Select Printer Ve Epson Stylus
20. e company information can be edited at any time Simply select the Edit command from the Company Menu or right click the company name in the Company Employee tree and click Edit The company information screen for the current company will appear You can switch between companies using the arrow icons in the tool bar 5 2 AvanTax User s Guide Selecting a Company Although you can enter as many company records as you desire you are only able to access one company at a time The name of the current company will always be displayed on the title bar of the AvanTax window To switch to another company you may use the Company Employee tree or choose the Select command from the Company menu This will open a list with the company names Highlight the desired company name using the mouse or the cursor arrow keys Then either hit the Enter key or click on the OK button Deleting a Company If you select the Delete command in the Company menu a verification message will be displayed requesting your confirmation to delete the company record Once that process is activated all of the employees and their associated vehicle records for that company will be deleted You can also delete a company record by clicking on the delete icon on the tool bar at the top of the Company Information screen Again you will be asked to confirm the deletion before AvanTax will permanently erase the company record Company Management 5 3 CHAPTER 6 Employee Management
21. e employee made reimbursements with respect to personal use of the vehicle Employee s signature A 2 AvanTax User s Guide APPENDIX B Reduced Benefit Election Form Appendix B B 1 Qu bec Automobile Taxable Benefit Request to Use Optional Calculation Taxation Year 2007 Employer Gismo Manufacturing I hereby elect to have my automobile benefit calculated pursuant to Section 41 1 of the Qu bec Taxation Act Murray George Date B 2 AvanTax User s Guide Federal Automobile Taxable Benefit Request to Use Optional Calculation Taxation Year 2007 Employer Gismo Manufacturing I hereby elect to have my automobile benefit calculated pursuant to Section 6 1 k of the Canadian Income Tax Act Murray George Date Appendix B B 3 APPENDIX C Sample Reports Appendix C C 1 Automobile Taxable Benefits Summary Taxation Year 2007 Company Auto Perform Inc Employee Name File No Prov Dept Taxable Benefit Ashton April A123 ON SALES 562 Barker Brian B053 ON SALES 148 Carpenter Carrie C384 ON ADMIN 853 Dolby Daryl D913 ON SALES 138 COMPANY TOTALS 1 701 Automobile Taxable Benefits Per Pay Period Taxation Year 2007 Company Auto Perform Inc Employee Name Pay Pds PayPds Federal Taxable Benefit Prov Dept File No Per Yr To Date Total ToDate Per pay Ashton April ON SALES A123 24 21 562 0 187 Barker Brian ON SALES B053 24 21 148 0 49 Carpenter Carrie ON ADMIN C384 24 21 853 0 284 Do
22. ederal Automobile Taxable Benefit Calculation Employer Auto Perform Inc Employee Ashton April Vehicle Audi Ser No Acquisition cost GST HST on acquisition PST on acquisition Number of days vehicle available Number of months vehicle available Total kilometres driven Personal kilometres driven Employee reimbursements re standby charge Employee reimbursements re operating costs Actual operating costs Standby Charge 2 x 35 600 x 12 x 2 950 20 000 Taxation Year 2007 File No A123 Province ON Department SALES 30 957 2 167 2 477 365 12 00 36 250 2 950 800 400 0 1 260 Less Amount reimbursed by employee 800 Operating Costs 2 950 x 022 649 Less amount reimbursed by employee 400 TOTAL FEDERAL TAXABLE BENEFITS Appendix C 460 249 709 C 5
23. for one specific province In that case click on Select and then choose the desired province from the list in the box to the right Taxation Year Indicate the year for which you want to produce reports You may select either the current year or the planning year Reports 8 1 Departments You may produce reports that include All Departments or you may type in the name of the one department you require the report for Make sure that the department name is entered exactly as it appears on the employee information screen Sort Employees By You can choose the order in which the employees will be listed on the reports from the options listed Whenever Name is selected the employees will be listed alphabetically by the full name as entered To produce a listing that is alphabetical by family name the names must be entered in the Family Name First Name format Reports to Print AvanTax provides you with the following company summary reports Taxable Benefits Summary Employee Vehicle List Taxable Benefits per Pay Period Remittable GST and Remittable QST Examples of these reports are provided in Appendix E You may select any one or more of these reports to print by checking the appropriate box es Then click on Print to proceed with the printing or Preview to view the report on screen Employee Detailed Computation The Employee Detailed Computation Reports window is very similar to the
24. hip under normal use for a period of 90 days from the date of delivery to you If you discover a defect in the media within the 90 day period ELM will replace it at no charge upon return of the media to ELM at the address stated below along with a copy of your receipt showing proof of payment ELM s entire liability and your exclusive remedy shall be the replacement of any media which does not meet EL Mis limited warranty and which is returned to ELM with a copy of your receipt showing proof of payment If ELM is unable to deliver replacement media which is free of iv Automobile Taxable Benefits defects in materials or workmanship you may terminate this license agreement by returning the program and related documentation to ELM during the 90 day warranty period and you will be entitled to a refund of your purchase price As software is inherently complex and may not be completely free of errors you are advised to verify your work In no event will ELM be liable to you for any direct damages and all other incidental or consequential damages including lost profits data and or savings arising out of the use of or inability to use the program regardless of whether ELM or any authorized dealer has been advised of the possibility of such damages occurring This Agreement represents the entire agreement concerning the license and use of the program to which it refers and supersedes all previous proposals and or prior agreements whether written or oral
25. id more or less frequently than others or where an individual is supplied with a vehicle part way through the year In the latter circumstance the number of remaining pay periods in the year should be inserted Salesperson Where the employer operates a car dealership or an automobile leasing business you will be prompted to indicate if the employee is a salesperson or leasing agent see Car Dealerships and Leasing Businesses on page 9 3 If you check this box AvanTax will use the average cost from the company information screen as the cost for the vehicle In addition AvanTax will compute the standby charge using the reduced rate of 1 5 instead of 2 and the operating costs benefit will be calculated at 19 per kilometer instead of 22 per kilometer Use Optional Calculation if Beneficial Under certain conditions there is an optional method of calculating the operating costs benefit for a vehicle as 50 of the standby charge see Operating Cost section 2b on page 9 3 If this option is checked AvanTax will use whichever calculation method is most beneficial to the employee To use this method the business use of the vehicle must be at least 50 and the employee must complete an election form prior to December 31st of the taxation year Show Combined Vehicles If the employee has more than one vehicle with dates in the current or planning year and these vehicles are either all leased or all purchased it may be beneficial to merge the
26. is conditional upon and limited by the terms and conditions of this license You may not a modify adapt translate reverse engineer decompile disassemble or create derivative works based on the program or b loan rent lease or sublicense the program or any copy without the prior written consent of ELM Any violation of these provisions will constitute an automatic revocation of your license to use the program and will subject you to substantial liability under the applicable legislation of the jurisdiction in which the program is being used You are permitted to use the program on any and all personal computers in your office with no restriction on the number of concurrent users Use of the program at other offices i e different street addresses is prohibited unless separate licenses have been purchased for each office LIMITED WARRANTY AND REMEDIES This program and accompanying written materials are provided on an as is basis without warranty of any kind either express or implied including but not limited to any implied warranties of merchantability or fitness for a particular purpose This means among other things that ELM is not responsible and you are not entitled to a refund if the program does not meet the requirements for which you license it or if the program will not operate free of error However ELM does warrant that the media on which the program is recorded will be free from defects in materials and workmans
27. l 90 or more for the transportation of goods equipment or passengers in the course of the business Personal Driving Personal driving is any driving by an employee or a person related to the employee for purposes other than in the course of his or her employment This includes e vacation trips e driving for personal use and travel between home and work even if the employer insists that the employee drive the vehicle home Number of Months The number of months for the purposes of all taxable benefits calculations is to be calculated as the total number of days available divided by 30 and rounded off to the nearest whole number if it is more than one About the Legislation 9 1 Computation of Taxable Benefits Federal The automobile taxable benefit for purposes of the ITA is the sum of the standby charge benefit and the operating costs benefit minus any reimbursements the employee makes in the year This section provides a summary of the rules affecting the computation for both employer owned and leased automobiles Basic Taxable Benefit 1 Standby Charge a Employer Owned Car 1 if business use is less than or equal to 50 2 x number of months x cost of the vehicle including PST and GST HST 11 if business use is greater than 50 and the number of personal use kilometres in the taxation year is less than 20 000 kilometres 1 667 kilometres per month 2 x personal km no of months x 1 667 km x no
28. ll allow you to input basic company and employee information and print reports and summaries You may enter as many separate companies as you require and there is no limit on the number of employees each company can have EZ AvanTax 2006 Auto Perform Inc File Company Employee Vehicles Reports Help eal Ashton April 4 employees Companies 5 Auto Perform Inc Ashton April Barker Brian Carpenter Carrie Dolby Daryl Gismo Manufacturing Universal Corporation Open Windows Company Employee Selection Window The Company Employee Selection window on the left side of the AvanTax window allows you to quickly move from one company to another and from one employee to another within a company When you click on a company name the company edit window will appear on the right side of the screen likewise when you click on an employee name the employee edit window will appear When you move from one company or employee to another the windows will automatically be kept in synch with each other Only one company and one employee may be accessed at a time Automobile Taxable Benefits 3 1 Sub Menus File The File menu contains the Printer Setup and Exit commands There are also functions to switch languages to repair the database to set per kilometer rates and to change the authorization number See Chapter 4 for details on these commands Company Each company has a separate record which contain
29. m which you are given the opportunity to register the program Click on the Registration button and in the box provided enter your authorization number from your invoice or if you ordered AvanTax online from the email we sent you If you choose not to register the program at this time you can click on the Start button to begin the program However the unregistered program will allow only one company record one employee record and one vehicle record to be entered Once the program has been registered the welcome screen will no longer be displayed upon startup New Releases Once you have installed an AvanTax application on your hard drive you should install new releases for that same application in the same subdirectory The information you have already entered will be preserved Choosing French or English AvanTax is a bilingual program When you first start the program you will be asked to select French or English as your default language but you can switch to the other language at any time To switch from English to French select Fran ais from the File menu To switch from French to English select English from the Fichier menu When you switch to English the program will close and be in English when you restart it 2 2 Automobile Taxable Benefits CHAPTER 3 Menus Main Menu When you start AvanTax it will automatically present the Main Menu on the screen You will then be able to access the sub menus which wi
30. ng 1 Employees other than shareholders The GST HST with respect to taxable benefits will be deemed to have arisen on the last day of February following the calendar year and the GST HST will be reported on the GST HST return covering the period which includes that day 2 Shareholders 9 4 AvanTax User s Guide The GST HST with respect to taxable benefits will be deemed to have arisen on the last day of the employer s taxation year in which the automobile was made available to the shareholder and the GST HST will be reported on the GST HST return covering the period which includes that day QST Reporting The amount of net remittable QST with respect to a particular employee will include 7 5 107 5 of the standby charge before deducting reimbursements and 5 3 4 7 for 2008 and subsequent years of the operating costs benefit also before deducting reimbursements About the Legislation 9 5 APPENDIX A Data Entry Form Appendix A A 1 Automobile Taxable Benefit Input Form Taxation Year 2007 Employer File No Province Employee Department Vehicle Information Description Serial no Cost GST HST PST Usage Information Date vehicle made available Date vehicle returned Days available if not entire period Total kilometres driven Personal kilometres driven Reimbursements Re standby charge Re operating costs Actual operating costs including GST HST and PST Only applicable wher
31. ppear on any reports We recommend that you use the federal employer account number as the company file number Name The company name should be entered in the same manner as you wish it to appear on all reports Address These fields are optional The company address is not printed on any of the reports However the address may be used to further identify a company Company Management 5 1 Province The province code entered on the company information screen will become the default province code for all of the employees added to the company This in turn will determine the tax rates used and for Qu bec whether provincial taxable benefits will be calculated and displayed and whether the QST Remittable report will be available Either type in the appropriate two character province code or select it from the dropdown list Pay Periods Per Year This value will be used by the software to produce the per pay period estimated taxable benefit The number entered here will be used as the default value for all employees added to the company If however some employees are paid a different number of times per year the number can be adjusted on the Employee Information screen Pay Periods to Date To aid in the calculation of the taxable benefit per remaining pay period on the employee information screen it is necessary to indicate the number of pay periods that have already passed The value entered here on the company information s
32. r with Windows 98 NT ME 2000 XP RAM 32 Mb RAM Disk Space At least ten megabytes of free space on hard drive Printer A Windows compatible printer Installing AvanTax To install AvanTax 1 Insert the first diskette or the CD in an appropriate drive 2 Run avtsetup exe 3 Follow the instructions on the screen You may select any available directory for the program the default directory is C Program Files AvanTax If you used the 2006 version of AvanTax we recommend that you install the 2007 version in the same directory as the 2006 version You will still be able to run the 2006 program and access the 2006 data exactly as before Installing in the same directory as the 2006 version will cause the 2006 data to be automatically brought forward to 2007 If you choose to put the 2007 version in a different directory than the 2006 version you can still roll the data forward by using the Bring Forward Previous Year s Data function in the File menu Network Installation Install AvanTax on an appropriate network drive and in the same directory from each workstation that will be using the program Automobile Taxable Benefits 2 1 Starting AvanTax The installation process will add AvanTax to your program list Click on the AvanTax icon to start the program AvanTax will create a database in the program directory The database will be named AVT2007 MDB The first time you start AvanTax a Welcome screen is displayed fro
33. reafter compute the amount of operating costs attributable to personal use and compare that amount to the reimbursements made to determine if an operating costs benefit applies see Reimbursements page 9 3 After all relevant information has been input click the Save icon or press Ctrl S to save the data Once the permanent information has been saved the Vehicles List and taxable benefit information will be updated on the appropriate employee information screen TIP When multiple automobiles are made available to an employee they will be listed in the order of most recent acquisition first Editing Vehicle Information After a vehicle record has been created the vehicle information can be edited at any time Simply select the Edit command from the Vehicle Menu The vehicle information screen for the current vehicle will appear You can switch between vehicles using the arrow icons in the tool bar Deleting a Vehicle If you select the Delete command in the Vehicle menu a verification message will be displayed requesting your confirmation to delete the vehicle record Once that process is activated all of the information for the vehicle will be deleted You can also delete a vehicle record by clicking on the delete icon from the tool bar at the top of the Vehicle Information screen Again you will be asked to confirm the deletion before AvanTax will permanently erase the record Vehicle Management 7 3 CHAPTER 8 Reports Comp
34. ributable to the personal use of the vehicle by the employee no taxable benefit applies with respect to such operating costs Qu bec For purposes of computing the automobile taxable benefit to be reported on Qu bec Relev 1 s the employers are required to first compute the standby charge and operating cost benefits and then compute the QST taxable benefit The Qu bec standby charge taxable benefit and operating cost benefits are computed using the same formulae as the Federal calculation Car Dealerships and Leasing Businesses These employers have the option no election is to be filed with Revenue Canada Taxation or the Minister of Revenue of Qu bec to compute the automobile taxable benefit standby charge using a reduced factor of 1 5 instead of 2 where the employee is employed principally i e more than 50 in selling or leasing automobiles About the Legislation 9 3 If the employer uses the option for purposes of the computation the cost of the automobile will be determined as the greater of a average cost of new automobiles acquired in the year for sale or lease b average cost of all new and used automobiles acquired in the year for sale or lease These two items are computed including GST HST and excluding PST QST In addition the prescribed amount with respect to operating costs benefit is 19 per kilometre driven for personal use rather than 22 GST HST Computation Reporting and Remittance Comput
35. rk of ELM Computer Systems Inc Published by ELM Computer Systems Inc 502 Gordon Baker Road North York Ontario M2H 3B4 Telephone 416 495 1624 Toll Free 1 800 268 3211 Fax 416 495 0044 Web site www avantax ca E Mail support avantax ca Automobile Taxable Benefits ili PROGRAM LICENSE AGREEMENT SOFTWARE LICENSE AND LIMITED WARRANTY Please carefully review this license agreement before installing or using this software BY INSTALLING OR USING THIS SOFTWARE YOU ARE AGREEING TO BECOME BOUND BY ALL OF THE TERMS AND CONDITIONS STATED IN THIS LICENSE If you do not agree with any of the terms and conditions promptly return this package and the other items which are part of this product to ELM Computer Systems Inc ELM and your purchase price will be refunded If the complete package has not been returned to ELM within 30 days from the date you take possession of the software then you will be deemed to have accepted the terms and conditions of this license LICENSE The AvanTax Software program is owned by ELM ELM hereby grants to you a non exclusive non transferable license to use the program You are expressly prohibited from distribution of the program to others outside your office regardless of whether such distribution is for profit All rights title and interest in and to the program and all documentation code and logic which describes and or comprises the program is vested in ELM Your right to use the program
36. s the company information There is no practical limit to the number of companies that can be created but only one company can be accessed at a time This company is referred to as the current company The name of the current company is always displayed in the title bar of the AvanTax window The commands listed in the Company menu are used to create delete and edit the company information records as well as to switch between companies See Chapter 5 Company Management for more details Employees Each company has a separate list of employees associated with it The commands in the employee menu allow you to create delete edit and switch between these employee records As with companies you can access only one employee at a time The name of this current employee will always be displayed to the right of the icon tool bar on the main menu along with the total number of employee records entered for the current company See Chapter 6 Employee Management for more details Vehicles A Vehicle Information record should be entered for every vehicle that was available to each employee during the year The details required to calculate the taxable benefit are recorded here Use the commands from this menu to create edit and delete these vehicle information records See Chapter 7 Vehicle Management for more details Reports The commands in the Reports menu are used to generate the various reports available from AvanTax These include the
37. sing cost for the entire period of time the employee had the vehicle or the monthly leasing cost You must label the value you have entered by selecting either the monthly payment or the period payment option The software will thereafter determine the total lease cost for the period the vehicle was available If the vehicle was not available to the employee for the entire period and the monthly lease cost is input the program will calculate the total lease cost based on the number of days the vehicle was available see below However if the lease cost is entered for the entire period the program assumes you have already allowed for the number of days the vehicle was actually available to the employee If you have indicated that the employee is a sales person or leasing agent the acquisition cost will be inserted automatically as the average cost entered in the employer record No PST QST has to be entered in this case however the amount of GST HST must be included in the average cost Date Automobile Made Available Provide for each vehicle the date it was made available to the employee Should the vehicle have been acquired prior to January 1 of the current year you can input either January 1 or the actual date that the vehicle was received by the employee Date Automobile Returned The input of the Date returned is important since the software will automatically determine the number of days an automobile was available
38. sk of computing taxable benefits AvanTax will allow you to compute automobile taxable benefits in a fraction of the time With its user friendly approach and its standardized questionnaire for orderly capture of required information AvanTax will allow you to proceed with the computation of such benefits in an efficient and reliable manner The system performs logical operations on the data and interacts with the user where certain elections alternatives are available AvanTax has been developed to provide payroll and HR departments with an appropriate tool to manage the automobile taxable benefits of all employees This is your AvanTax Users Guide It is designed for computer users of all experience levels Use this guide to learn the basic skills and as a reference document once you have familiarized yourself with the basics Technical Support As a registered user you will receive notices from us of upgrades to AvanTax software and you may telephone fax or email us with your questions about the installation and use of the Program Toll Free 1 800 268 3211 in French 514 499 9669 Fax Number 416 495 0044 in Toronto 416 495 1624 E Mail support avantax ca Web site www avantax ca ELM Computer Systems Inc 502 Gordon Baker Road North York Ontario M2H 3B4 Automobile Taxable Benefits 1 1 1 2 Automobile Taxable Benefits CHAPTER 2 Getting Started Hardware Requirements Computer Pentium class compute
39. to an employee If this field is left blank AvanTax will assume that the vehicle has not yet been returned and was therefore still available to the employee on December 31st Number of Days Available When you enter the dates available and returned AvanTax will automatically calculate the maximum number of days that the vehicle was accessible to the employee during the current year or would be accessible during the planning year If the vehicle was not available each day during the period enter the actual number of days available Total Personal Kilometres Driven Enter the total number of kilometres driven in this vehicle by this employee On the next line enter the number of personal kilometres driven by the employee 7 2 AvanTax User s Guide Reimbursements a Standby Charge Enter the total of all reimbursements made by the employee during the calendar year with respect to the use of the vehicle other than reimbursements with respect to the operating costs b Operating Costs Enter the total of all reimbursements with respect to the operating costs made by the employee prior to February 15 of the year following the year for which the taxable benefit is computed Where reimbursements are made with respect to operating costs you will also be prompted to input the total actual operating costs including PST and GST HST incurred by the employer while the vehicle was available to the particular employee The software will the
40. vehicles together as if they were one vehicle by using the average acquisition cost and the totals of the kilometres driven days available and amounts reimbursed When the Show Combined Vehicles box is checked the program calculates and displays the taxable benefit using the combined data This allows you to compare the taxable benefit calculated in the two different 6 2 AvanTax User s Guide manners You will need to indicate whether you want to treat the vehicles as individuals or combined when you produce the printed reports Important Note The combined vehicles method is not explicitly prescribed by Canada It has been included in the program at the request of users Taxable Benefit and Vehicles These sections will be blank until vehicle information is entered The data will be automatically updated with a summary of the data entered in the Vehicle Information screen See Chapter 7 Vehicle Management for details on entering vehicle information The Vehicles list show the name and available dates for each vehicle entered for the current employee If there is more than one vehicle the most recent vehicle will be listed first The current vehicle will be highlighted As soon as usage and reimbursement values are entered and saved in the vehicle information screen the taxable benefit will be displayed The Taxable Benefit section will show the calculated federal taxable benefit for the highlighted vehicle for both the current an
41. yees SIN number an internal employee number or leave the field blank Department A department name of up to six characters can be assigned to each employee if desired This will allow for the printing of company and employee reports by department Be careful to be consistent with the spelling of the department Company Management 6 1 name since only exact matches will be included in reports filtered by department Employee Name We suggest that you use the family name first name input format e g Berridge Charles to input the employee names This will make searching for an employee easier since the employee list will appear in alphabetical order by family name Province of Employment This field is required to accurately calculate the taxes on the cost of vehicle s entered for the employee If Qu bec is chosen it will cause the calculation and display of provincial taxable benefits The default value will be the value entered on the company information screen It can however be edited for each employee by simply typing the correct code or selecting it from the drop down list Pay periods The number of pay periods will be set by default as the number of pay periods inserted in the company information screen This number will allow the computation of the per pay period taxable benefit amount This field can be overridden if required by simply typing in the correct value This may be necessary where some employees are pa
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