----------------------------------------------------------------- Payroll and Tax Table Update (73rd Edition) ----------------------------------------------------------------- This update contains the changes needed for the QuickBooks payroll system to comply with new legislation, announced by the Government of Canada and most provincial governments, that affects payroll calculations. These changes become effective on January 1st, 2001. IMPORTANT: Due to indexation, federal and provincial tax credit amounts have changed for the 2001 tax year. * This tax table update cannot update employee tax credit claim amounts for you! * You must examine each employee's profile and manually update his or her claim amounts. Also, you should update your employee defaults (templates) with the new basic personal tax credit amounts. ----------------------------------------------------------------- To check if the Tax Table Update installed properly: ----------------------------------------------------------------- For installation instructions, please see the insert that came with your diskette or CD. If your company uses more than one copy of QuickBooks, you must update each copy separately. 1. If you are using... * QuickBooks 4.5, 5.0, or 6.0: From the Help menu (or, for Mac OS, the Apple menu), select About Tax Table. * QuickBooks 2000 or 2001: From the Employee menu, select Setup Payroll Tax Compliance Service, then About Tax Table. 2. The version number in the window should be: QuickBooks or QuickBooks Pro 2001: 739017 QuickBooks or QuickBooks Pro 2000: 738017 QuickBooks or QuickBooks Pro 6.0: 736017 QuickBooks or QuickBooks Pro 5.0: 735017 QuickBooks or QuickBooks Pro 4.5: 7317 QuickBooks Pro for Macintosh: 7317 ----------------------------------------------------------------- Contents ----------------------------------------------------------------- I. TONI (Tax On Net Income) comes into effect Jan. 1st, 2001 II. Basic federal and provincial personal amounts adjusted III. New tax bracket and federal income tax rate changes IV. Federal surtax is eliminated V. Canada Pension Plan (CPP) adjusted VI. Employment Insurance (EI) adjusted VII. Provincial and Territorial Tax Changes A) Newfoundland and Labrador B) Nova Scotia C) Prince Edward Island D) New Brunswick E) Quebec F) Ontario G) Manitoba H) Saskatchewan I) Alberta J) British Columbia K) Yukon L) Northwest Territories M) Nunavut VIII. New boxes on T4 slips IX. Upgrading QuickBooks after installing this update X. Contacting Intuit XI. License agreement ----------------------------------------------------------------- 1. TONI (Tax on Net Income) comes into effect: ----------------------------------------------------------------- What is TONI? TONI (Tax on Net Income) is the new provincial method of calculating individual income tax based on taxable income. With the "tax-on-tax" method, the provincial income tax is calculated as a percentage of the basic federal tax. With the TONI method, the provincial tax is calculated by applying a provincial tax rate to the taxable income amount. Taxable income is the same amount for both federal and provincial tax calculations. Beginning January 1, 2001, the TONI method of calculating provincial taxes will apply to withholdings at source for all provinces. Two separate calculations based on the taxable income will be necessary, one for the federal tax withholdings and the other for the provincial tax withholdings. Territorial tax will continue to be calculated on a tax-on-tax basis. There is no change to the methods of calculating federal tax for employees or pensioners in Quebec or outside Canada. A province can have multiple tax rates, tax brackets, and provincial non-refundable personal tax credit amounts that differ from the federal non-refundable personal tax credit amounts. However, credits based on expenditures, such as Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and tuition fees will be based on the actual payments for both federal and provincial calculations. How does TONI affect me as an employer or payer? As an employer or payer, you may have to ask your employees or pensioners to complete both a federal and provincial tax credit return (Form TD1) to allow you to accurately determine the tax withholdings at source. You will have different federal and provincial personal claim amounts and claim codes for an employee or pensioner. You will have to process two separate calculations based on taxable income to determine the federal and provincial tax withholdings. What does not change for me with TONI? There is no change to the methods of calculating federal tax for employees or pensioners in Quebec or outside Canada. You will continue to calculate territorial tax applying the tax-on- tax method. You will continue to report the combined federal and provincial tax deductions on the payroll remittance Form PD7A or PD7TM. You will continue to make periodic remittances of both federal and provincial tax withholdings, along with CPP and EI, to the Canada Customs and Revenue Agency (CCRA). You will continue to file a single T4 information return in February of each year. The T4 slip will show combined federal and provincial tax as one amount. The CCRA will continue to issue letters for "authority to reduce tax withholdings" and to respond to employer enquiries. Provincial TD1 forms The CCRA will provide a specific TD1 form for each province where the provincial non-refundable personal tax credit amounts are different from the federal non-refundable personal tax credit amounts for 2001. Employees will be required to complete the provincial tax credit return that corresponds to their province of employment, or province of residence in the case of pensioners. Completion of the form is considered voluntary except for a new employee, a new pensioner or an individual who wishes to claim a tax credit amount greater than the provincial basic personal amount. We recommend that you do all that you can to ensure affected employees and pensioners complete a provincial Form TD1. You should advise employees or pensioners that if they do not complete the form, they will receive only the basic personal amount for provincial tax purposes; this could lead to excessive tax withholding. An employee who lives in one province but works in another one may be subject to excessive tax deductions. If so, he or she can ask for a reduction in tax deductions, by obtaining a letter of authority from any tax services office. For more information, see Chapter 4 of the employers' guide called Payroll Deductions (Basic Information). TD1 transitional rule Due to late release of the provincial TD1 forms, for the initial pay periods of 2001, employers and payers are authorized to determine the amount of the provincial tax credit amounts on behalf of their employees and pension or benefit recipients. You can achieve this by using the federal TD1 information already on file and the corresponding provincial TD1 values for 2001, to estimate the appropriate 2001 provincial tax credit amounts for your employees and pension or benefit recipients. If you do not have a TD1 form on file, you will deduct federal and provincial taxes using only the basic personal federal and provincial amounts. Those individuals affected must still complete and submit provincial TD1 forms within a reasonable period of time to ensure that they receive the correct provincial tax credit amounts. Claim codes The provincial claim code amounts will not correspond with the federal claim code amounts. When the federal claim code is "0" because the employee is a non-resident, the provincial claim code must also be "0". Basic personal amounts and employment income from all sources If an employee states that his or her total expected income will be less than the "Total claim amount" on line 12 of a TD1 form, do not deduct any federal or provincial tax. However, as an employer, if you know that this statement is false, you must deduct federal and provincial tax from the employee's salary. You are required to deduct tax according to the claim code that corresponds to the claim amount on line 12 of the TD1 form. It is a serious offence to knowingly accept a TD1 form that contains false or misleading statement(s). If you are uncertain whether a statement you receive on a TD1 form is false, please contact your tax services office for advice. ----------------------------------------------------------------- II. Basic federal and provincial personal amounts adjusted: ----------------------------------------------------------------- Tax brackets and most of the personal amounts on the federal Form TD1, Personal Tax Credits Return, have been indexed for 2001. Indexing means that the amounts are adjusted based on annual changes in the consumer price index (CPI). To calculate most personal credit amounts for your employees, multiply the existing amounts by 1.011. Other changes have also affected the personal amounts. They are now: * Basic personal amount: $7,412 * Spousal or equivalent-to-spouse amount: $6,294 (reduced by the dependant's net income over $629) * Disability amount: $6000 * Amount for a dependant with a disability, age 18 and over: $3,500 (reduced by any equivalent-to-spouse amount in respect of the dependant and by the dependant's net income over $4,966) * Age amount for an individual age 65 or over: $3,619 (reduced by 15% of net income over $26,941) * Caregiver amount: $3,500 (reduced by any equivalent-to-spouse amount in respect of the dependant and by the dependant's net income over $11,953) ***This tax table update cannot update employee tax credit claim amounts for you!*** You must examine each employee's profile and manually update his or her claim amount. On the Payroll Info tab of the employee's profile, click the Payroll Taxes button and adjust the TD1 amount as needed. Also, each of your employees must fill in a provincial TD1. You should enter your employees' provincial personal amounts in their profiles. Finally, you should update your employee defaults with the new basic personal tax credit amount. In the Employee list, click the Employee menu button and select Employee Defaults . Then click the Payroll Taxes button and multiply the federal TD1 amount by 1.011. ----------------------------------------------------------------- III. New tax bracket and federal income tax rate changes: ----------------------------------------------------------------- From To Tax Rate $0 $30,754 16% $30,754 $61,509 22% $61,509 $100,000 26% $100,000 and up 29% ----------------------------------------------------------------- IV. Federal surtax is eliminated: ----------------------------------------------------------------- For the year 2001, the federal surtax is eliminated. ----------------------------------------------------------------- V. Canada Pension Plan (CPP) adjusted: ----------------------------------------------------------------- For 2001, the Canada Pension Plan maximum pensionable earnings are $38,300, and the basic exemption for the year is $3,500. The contribution rate for employees is 4.3%. An employee's maximum contribution for the year is $1,496.40. The employer's contribution is an amount equal to the total of the employee's contribution. For insurance companies that need the year's maximum pensionable earnings before rounding, the amount for this year is $38,396.68. ----------------------------------------------------------------- VI. Employment Insurance (EI) adjusted: ----------------------------------------------------------------- For 2001, the maximum annual insurable earnings are $39,000 and the premium rate is 2.25% for a maximum annual premium of $877.50. ----------------------------------------------------------------- VII. Provincial and Territorial Taxes effective Jan. 1, 2001 ----------------------------------------------------------------- A. Newfoundland and Labrador: The following provincial tax rates are effective January 1, 2001: * 10.57% on income less than or equal to $29,590; * 16.16% on income greater than $29,590 but less than or equal to $59,180; and * 18.02% on income greater than $59,180. Listed below are some of the non-refundable personal tax credit amounts that the province of Newfoundland and Labrador has announced for January 1, 2001. Please refer to Form TD1NF for complete information on personal amounts. * the basic personal amount will be $7,410; and * the spousal amount or equivalent-to-spouse amount will be $6,055. The claim will be reduced by the spouse's or dependant's income in excess of $606. Personal amounts will be multiplied by the province's lowest non- zero tax rate of 10.57%. The provincial surtax payable for Newfoundland and Labrador for 2001 is revised as follows: * Where the basic provincial tax payable (T4) is less than or equal to $7,032, the surtax payable (V1) is $0. * Where the basic provincial tax payable (T4) is greater than $7,032, the surtax payable (V1) is 9% of the basic provincial tax payable in excess of $7,032. B. Nova Scotia: The following provincial tax rates are effective January 1, 2001: * 9.77% on income less than or equal to $29,590; * 14.95% on income greater than $29,590 but less than or equal to $59,180; and * 16.67% on income greater than $59,180. Listed below are some of the non-refundable personal tax credit amounts that the province of Nova Scotia has announced for January 1, 2001. Please refer to Form TD1NS for complete information on personal amounts. * the basic personal amount will be $7,231; and * the spousal amount or equivalent-to-spouse amount will be $6,140. The claim will be reduced by the spouse's or dependant's income in excess of $614. Personal amounts will be multiplied by the province's lowest non- zero tax rate of 9.77%. The provincial surtax payable for Nova Scotia for 2001 is as follows: * Where the basic provincial tax payable (T4) is less than or equal to $10,000, the surtax payable (V1) is $0. * Where the basic provincial tax payable (T4) is greater than $10,000, the surtax payable (V1) is 10% of the basic provincial tax payable in excess of $10,000. The provincial labour-sponsored funds tax credit (factor LCP) for Nova Scotia will remain the lesser of $525 and 15% of the share purchase. C. Prince Edward Island: On March 17, 2000, the Provincial Treasurer for Prince Edward Island announced the following provincial tax rates, effective January 1, 2001: * 9.8% on income less than or equal to $30,754; * 13.8% on income greater than $30,754 but less than or equal to $61,509; and * 16.7% on income greater than $61,509. Listed below are some of the non-refundable personal tax credit amounts that the province of Prince Edward Island has announced for January 1, 2001. Please refer to Form TD1PE for complete information on personal amounts. * the basic personal amount will be $7,412; and * the spousal amount or equivalent-to-spouse amount will be $6,294. The claim will be reduced by the spouse's or dependant's income in excess of $629. Personal amounts will be multiplied by the province's lowest non- zero tax rate of 9.8%. The provincial surtax payable for Prince Edward Island for 2001 remains as follows: * Where the basic provincial tax payable (T4) is less than or equal to $5,200, the surtax payable (V1) is $0. * Where the basic provincial tax payable (T4) is greater than $5,200, the surtax payable (V1) is 10% of the basic provincial tax payable in excess of $5,200. D. New Brunswick: On March 28, 2000, the Minister of Finance for the province of New Brunswick announced the following provincial tax rates, effective January 1, 2001: * 9.68% on income less than or equal to $29,590; * 14.82% on income greater than $29,590 but less than or equal to $59,180; and * 16.52% on income greater than $59,180. Listed below are some of the non-refundable personal tax credit amounts that the province of New Brunswick has announced for January 1, 2001. Please refer to Form TD1NB for complete information on personal amounts. * the basic personal amount will be $7,231; and * the spousal amount or equivalent-to-spouse amount will be $6,140. The claim will be reduced by the spouse's or dependant's income in excess of $614. Personal amounts will be multiplied by the lowest non-zero provincial tax rate of 9.68%. The New Brunswick provincial surtax payable for 2001 is as follows: * Where the basic provincial tax payable (T4) is less than or equal to $13,500, the surtax payable (V1) is $0. * Where the basic provincial tax payable (T4) is greater than $13,500, the surtax payable (V1) is 8% of the basic provincial tax payable in excess of $13,500. The provincial labour-sponsored funds tax credit (factor LCP) for New Brunswick will remain the lesser of $750 and 15% of the share purchase. E. Quebec: There is no change to the 16.5% federal abatement for Quebec for 2001. F. Ontario: Tax brackets and some non-refundable personal tax credit amounts have been indexed by the factor 1.027 for 2001. Indexing factors will be determined annually for Ontario. On May 2, 2000, the Minister of Finance for the province of Ontario announced the following provincial tax rates, effective January 1, 2001: * 6.2% on income less than or equal to $30,814; * 9.24% on income greater than $30,814 but less than or equal to $61,629; and * 11.16% on income greater than $61,629. Listed below are some of the non-refundable personal tax credit amounts that the province of Ontario has announced for January 1, 2001. Please refer to Form TD1ON for complete information on personal amounts. * the basic personal amount will be $7,426; and * the spousal or equivalent-to-spouse amount will be $6,306. The claim will be reduced by the spouse's or dependant's net income in excess of $631. Personal amounts will be multiplied by the province's lowest non- zero tax rate of 6.2%. The Ontario provincial surtax payable for 2001 will be calculated as follows: * Where the basic provincial tax payable (T4) is less than or equal to $3,560, the surtax payable (V1) is $0. * Where the basic provincial tax payable (T4) is greater than $3,560 and less than or equal to $4,491, the surtax payable (V1) is 20% of the basic provincial tax payable in excess of $3,560. * Where the basic provincial tax payable (T4) is greater than $4,491, the surtax payable (V1) is the total of 20% of the basic provincial tax payable in excess of $3,560 and 36% of the basic provincial tax payable in excess of $4,491. The provincial labour-sponsored funds tax credit (factor LCP) for Ontario will remain the lesser of $750 and 15% of the share purchase. Provincial tax reduction for Ontario The provincial tax reduction for Ontario will continue under TONI. When possible, the employer or payer should implement the Y factor based on the total of the applicable amounts shown on the employee's or pensioner's TD1ON form. If the reduction factor (Y) is not used, any over-deduction of tax will be considered when the individual files an income tax return. When possible, the Y factor should be implemented. The provincial tax reduction amounts for 2001 are as follows: * $156 for basic personal amount; * $317 for each dependant under age 18(*); and * $317 for each dependant with a disability that the employee or pensioner has claimed on Form TD1ON. (*) Since the tax reduction for dependants under 18 is not shown on the TD1ON, the employee or pensioner will have to provide the employer or payer with a written request to include such amounts. The reduction remains equal to two times the individual's personal amounts minus Ontario income tax. The reduction cannot exceed the Ontario income tax and the reduction is nil when Ontario income tax exceeds twice the personal amounts. G. Manitoba On May 10, 2000, the Minister of Finance for the province of Manitoba announced the following provincial tax rates, effective January 1, 2001: * 10.9% on income less than or equal to $30,544; * 16.2% on income greater than $30,544 but less than or equal to $61,089; and * 17.5% on income greater than $61,089. Listed below are some of the non-refundable personal tax credit amounts that the province of Manitoba has announced for January 1, 2001. Please refer to Form TD1MB for complete information on personal amounts. * the basic personal amount will be $7,361; and * the spousal amount or equivalent-to-spouse amount will be $6,251. The claim will be reduced by the spouse's or dependant's income in excess of $625. Personal amounts will be multiplied by the province's lowest non-zero tax rate of 10.9%. The surtax and flat tax factors previously used for the Manitoba tax calculation (factors V2 and V4) have been discontinued for 2001. The provincial labour-sponsored funds tax credit (factor LCP) for Manitoba will remain the lesser of $750 and 15% of the share purchase. Provincial tax reduction for Manitoba The amounts used in the tax reduction calculation have been revised. We have also discontinued the use of an estimated Y factor in the tax reduction formula. When possible, the employer or payer should implement the Y factor based on the total of the applicable amounts shown on the employee's or pensioner's TD1MB form. If the Y factor is not used, any over-deduction of tax will be considered when the individual files an income tax return. When possible, the Y factor should be implemented. The tax reduction amounts for Manitoba are as follows: * the basic provincial tax reduction amount will be $225; * the spousal or equivalent-to-spouse amount will be $225; * the amount for age 65 and over will be $225 for the employee or pensioner and $225 for a dependant spouse age 65 and over; * the amount for each dependant under 18 will be $300(*); * the amount for an employee or pensioner with a disability will be $300; and * the amount in respect of a dependant with a disability will be $300. (*) Since the tax reduction for dependants under 18 is not shown on the TD1MB, the employee or pensioner will have to provide the employer or payer with a written request to include such amounts. The total of the above amounts that apply is reduced by 1% of net income and the reduction cannot exceed the provincial tax otherwise payable. H. Saskatchewan On March 29, 2000, the Minister of Finance for the province of Saskatchewan announced the following provincial tax rates, effective January 1, 2001: * 11.5% on income less than or equal to $30,000; * 13.5% on income greater than $30,000 but less than or equal to $60,000; and * 16.0% on income greater than $60,000. Listed below are some of the non-refundable personal tax credit amounts that the province of Saskatchewan has announced for January 1, 2001. Please refer to Form TD1SK for complete information on personal amounts. * the basic personal amount will be $8,000; * the spousal amount or equivalent-to-spouse amount will be $8,000. The claim will be reduced by the spouse's or dependant's income in excess of $800; and * the amount for dependant children under 18 will be $1,500 per child. Personal amounts will be multiplied by the province's lowest non- zero tax rate of 11.5%. The surtax factors (V1 and V2) along with the reduction factor (S) for Saskatchewan have been discontinued for 2001. The provincial labour-sponsored funds tax credit (factor LCP) for Saskatchewan will remain the lesser of $525 and 15% of the share purchase. I. Alberta On May 6, 2000, the Premier of Alberta announced that, effective January 1, 2001, a provincial tax rate of 10.5% would apply on all income. Listed below are some of the non-refundable personal tax credit amounts that the province of Alberta has announced for January 1, 2001. Please refer to Form TD1AB for complete information on personal amounts. * the basic personal amount will be $12,900; and * the spousal or equivalent-to-spouse amount will be $12,900. The claim will be reduced by the spouse's or dependant's net income over $0. Personal amounts will be multiplied by the province's tax rate of 10.5%. The Alberta flat tax (factor V3) and the factor (S) have been discontinued for 2001. J. British Columbia The first two tax bracket amounts have been indexed by the factor 1.016 for 2001. Indexing factors will be determined annually for British Columbia. On March 27, 2000, the Minister of Finance for the province of British Columbia announced the following provincial tax rates, effective January 1, 2001: * 8.4% on income less than or equal to $30,484; * 11.9% on income greater than $30,484 but less than or equal to $60,969; * 16.7% on income greater than $60,969 but less than or equal to $70,000; * 18.7% on income greater than $70,000 but less than or equal to $85,000; and * 19.7% on income greater than $85,000. Listed below are some of the non-refundable personal tax credit amounts that the province of British Columbia has announced for January 1, 2001. Please refer to Form TD1BC for complete information on personal amounts. * the basic personal amount will be $8,000; and * the spousal or equivalent-to-spouse amount will be $6,850. The claim will be reduced by the spouse's or dependant's net income in excess of $685. Personal amounts will be multiplied by the province's lowest non- zero tax rate of 8.4%. The surtax factor (V1) and the non-refundable surtax credit of $50 based on the number of dependants have been discontinued for 2001. The provincial labour-sponsored funds tax credit (factor LCP) for British Columbia will remain the lesser of $2,000 and 15% of the share purchase. K. Yukon On November 14, 2000, the Yukon government tabled a reduction to the basic territorial tax rate for 2001 to 46% (formerly 49% implemented as 48% in July 2000 for Option 1). The territorial labour-sponsored funds tax credit (factor LCP) for Yukon remains equal to the lesser of $1,250 and 25% of the cost of the qualified shares. The Yukon surtax payable remains as follows: * Where the basic territorial tax payable (V × T3) is less than or equal to $6,000, the surtax payable (V1) is $0. * Where the basic territorial tax payable (V × T3) is greater than $6,000, the surtax payable (V1) is 5% of the basic territorial tax payable in excess of $6,000. L. Northwest Territories There is no change to the Northwest Territories basic territorial tax rate of 45% for 2001. The territorial labour-sponsored funds tax credit (factor LCP) for the Northwest Territories remains equal to 15% of the first $5,000 invested plus 30% of the remainder, with a maximum credit of $29,250 (the maximum share purchase for purposes of the credit is $100,000). M. Nunavut There is no change to the Nunavut basic territorial tax rate of 45% for 2001. The territorial labour-sponsored funds tax credit (factor LCP) for the Nunavut remains equal to 15% of the first $5,000 invested plus 30% of the remainder, with a maximum credit of $29,250 (the maximum share purchase for purposes of the credit is $100,000). Nunavut abbreviation On your 2000 T4 information slips, use the abbreviation NN or NU to designate employment in Nunavut. Also use NN or NU for other reporting slips, such as a T4A slip. For information slips for 2001 and subsequent, use only the abbreviation NU to identify employment in Nunavut. ----------------------------------------------------------------- VIII. New boxes on T4 slips ----------------------------------------------------------------- Because the federal government changed the way stock options are taxed and the way other T4 amounts are handled, several new boxes appear on T4 slips for 2000: Box 53: Deferred Stock Option Benefits If the employee has bought shares in your company below their fair market price through a stock options plan and wants to defer his or her taxable benefit until the shares are sold, enter the amount (not including GST or HST) here. This amount should not be included in Box 14. The taxable benefit is usually the fair market price of the stock at the time of purchase minus what the employee actually paid. Contact your local Canada Customs and Revenue Agency office for more information. Code 77: Workers' Compensation Benefits repaid to the employer Enter the amount of workers' compensation benefits that you previously included in the employee's salary and that he or she is now repaying to you. This will allow the employee to claim a corresponding deduction as other employment expenses on his or her income tax return. Box 97: Stock Option Benefits (before Feb. 28, 2000) If the employee has bought shares in your company below their fair market price through a stock options plan, enter the amount of his or her taxable benefit (not including GST or HST) here. QuickBooks automatically fills in this amount for you according to the employee's payroll information and includes it in Box 14. The taxable benefit is usually the fair market price of the stock at the time of purchase minus what the employee actually paid. Contact your local Canada Customs and Revenue Agency office for more information. Box 98: Stock Option and Shares Deductions 110.1.d (before Feb. 28, 2000) If the employee has bought shares in your company below their fair market price through a stock options plan and is entitled to a deduction under paragraph 110.1.d of the Income Tax Act, enter one-quarter of the amount you entered in Code 97 here. Box 99: Stock Option and Shares Deductions 110.1.d.1 (before Feb. 28, 2000) If the employee has bought shares in your company below their fair market price through a stock options plan and is entitled to a deduction under paragraph 110.1.d.1 of the Income Tax Act, enter one-quarter of the eligible amount you entered in Code 97 here. ----------------------------------------------------------------- IX. Upgrading QuickBooks after installing this update ----------------------------------------------------------------- After you install this patch, certain versions of QuickBooks will no longer be able to read your company file. If you want to upgrade to a more recent version of QuickBooks, make sure you have the most recent maintenance release of that version. Many of these updates are included on your tax table CD-ROM. QuickBooks Release required to read version: your company file 2001 2 2000 7 6.0 8 5.0 8 4.5 18 Macintosh 7 To check which release you have, install your new software. Follow the directions included with it to open the sample company. Then, with the sample company open, hold down the Control ("CRTL") key and press "1" (above the letter "Q", not the "1" on the keypad). If you need to update your copy of QuickBooks: * QuickBooks 2000 and 2001, with an Internet Connection: from the File menu, select Update QuickBooks. * QuickBooks 6.0, with an Internet Connection: from the Online menu, select Update Service, then Go Online. * no Internet connection or all other versions of QuickBooks: check your tax table CD-ROM or contact QuickBooks technical support. For more information about updating QuickBooks, see your user's guide or the onscreen help, or else visit: http://www.quickbooks.ca/updates.html ----------------------------------------------------------------- X. Contacting Intuit ----------------------------------------------------------------- For the latest information about QuickBooks, please visit our online support web site: http://www.quickbooks.ca/support If you encounter a problem with this patch, please contact Intuit Canada: * QuickBooks Basic Telephone Support: Call 1-877-868-1977 from 8 am to 5 pm MST, from Mon. to Fri. A charge per incident applies. To expedite your call, please have your credit card number ready. * QuickBooks Payroll Tax Compliance Service: If you have questions about your subscription, call 1-877-442-8912 from 8 am to 6 pm MST, from Mon. to Fri. Support is available for extended hours from October to April. * QuickFax Service: The answers to many frequently-asked questions are available through our automated fax service. To request a fax, call 1-800-858-6090 at any time. ----------------------------------------------------------------- XI. QuickBooks Payroll Tax Compliance Service License Agreement ----------------------------------------------------------------- This is an agreement between You and Intuit for your subscription to the QuickBooks Payroll Tax Compliance Service. The terms and conditions in this agreement will govern your subscription. You should read this agreement before subscribing. 1. Definitions. The following items are defined for use in this Agreement. a. "Intuit" means Intuit Inc., a Delaware corporation or its Canadian subsidiary, Intuit Canada Limited. b. "You" means the subscriber shown on the subscription card. c. "Tax Tables" means the information provided to You by Intuit on floppy diskettes pursuant to this Agreement. d. "On Documentation" means any written information provided to You by Intuit regarding the Tax Tables. e. "Service" means the periodic provision to You during the Service Period of payroll withholding tax tables for the subscribed-for jurisdictions encoded on floppy disks for use with the QuickBooks software product licensed by Intuit to You. f. "Service Period" means the period from the date Intuit receives your payment for the Service to the end of the subscription period. 2. Agreement and License By subscribing to the Service and paying the appropriate subscription fee, Intuit grants You a personal and non-exclusive license to use the Tax Tables and Documentation for the jurisdictions for which You have subscribed within Canada ("License"). You may not use the Tax Tables or the Documentation except with the QuickBooks product. This license may be terminated by Intuit immediately and without notice if You fail to comply with any term or condition of this Agreement. From time to time Intuit may change the subscription fee. In this event You will receive notice of such change. 3. Title, Copyright, and Restrictions on Use Please refer to the QuickBooks manual for the terms on Title, Copyright, and Restrictions on Use. These terms are incorporated into this Agreement and will govern your subscription. 4. Limited Warranty Intuit warrants only that under normal use for a period of 60 days from the date of delivery to You that: (a) the diskettes on which the Tax Tables are furnished will be free from defects in material and workmanship: (b) the Tax Tables will operate substantially as described in the Documentation and (c) any defective Documentation pages returned to Intuit within such period will be replaced. (While Intuit has attempted to eliminate inaccuracies and typographical errors from any such Documentation, such inaccuracies and errors shall not be considered defects.) Intuit makes no other warranties, express or implied, with respect to the Service, the Tax Tables, or the Documentation. YOU ASSUME FULL RESPONSIBILITY FOR THE SELECTION OF THE TAX TABLES TO ACHIEVE YOUR INTENDED PURPOSES, FOR THE PROPER INSTALLATIONS AND USE OF THE TAX TABLES AND FOR VERIFYING THE RESULTS OBTAINED FROM USE OF THE TAX TABLES, INTUIT DISCLAIMS ANY WARRANTY OR CONDITION THAT THE FUNCTIONS CONTAINED IN THE TAX TABLES WILL MEET YOUR REQUIREMENTS OR THAT THE OPERATION OF THE TAX TABLES WILL BE INTERRUPTION OR ERROR FREE. If You discover a defect in the diskettes or the Tax Tables fail to operate substantially as described in the Documentation within the 60-day warranty period, then return the defective diskette to Intuit within such 60-day period together with the receipt showing the date of purchase of this License. Intuit will, upon verification of the defect or error, at Intuit's option, either repair or replace the defective copy or refund the amount You paid for this License (the "License Fee"). If Intuit elects to provide a refund, upon the date You receive notice of such election this License shall terminate and You must destroy any copies of the Tax Tables and any portions of them, including copies residing in computer memory, and certify such compliance to Intuit. INTUIT DISCLAIMS ALL OTHER WARRANTIES OR CONDITIONS, WHETHER ORAL OR WRITTEN, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OR CONDITIONS OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. ALL WARRANTIES OR CONDITIONS PROVIDED HEREIN SHALL TERMINATE 90 DAYS FROM DATE OF DELIVERY OF THE TAX TABLES TO YOU. Some provinces may not allow limitations on how long an implied warranty lasts, so the above limitation may not apply to You. This limited warranty gives You specific legal rights and You may have other rights which vary from province to province. 5. EXCLUSIVE REMEDY YOUR EXCLUSIVE REMEDY AND INTUIT'S ENTIRE LIABILITY ARISING FROM OR IN CONNECTION WITH THE TAX TABLES, THE DOCUMENTATION, OR THIS LICENSE, INCLUDING WITHOUT LIMITATION FOR BREACH OR WARRANTY, SHALL BE, AT INTUIT'S OPTION, THE REPAIR OR REPLACEMENT OF TAX TABLE DISKETTES OR REFUND OF LICENSE FEES. 6. 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