In ABRA Flexi, you can enter a child tax credit that will be taken into account when calculating payroll and in tax returns. Unfortunately, the program does not include the form for Confirmation of Non-Application of Child Tax Credit.
Entering a Child Tax Credit
The child tax credit can be entered via the menu Employees - HR. If you are adding a credit for an employee who has already been working for you for some time, Flexi will display a window similar to the one shown when changing company settings, asking you from which date the credit will apply. You can choose to apply the setting from a specific date or apply it to the existing setup. However, child tax credits should always be set with a specific effective date, i.e., from a date:
The child (or children) being claimed can then be added in the lower tab Children using the New button:
Fill in the children's details and save:
At this point, the children have only been created but are not yet being claimed. For the credit to be reflected in the payroll, you need to save the employee record and reopen it so that the record is refreshed. You can then set the credit via the menu Payroll Parameters - Tax Credits:
In the dropdown, select the 1st, 2nd, and any additional children for the deduction and save. The credits will then appear in the payroll update:
When the tax credit amount changes, you do not need to configure anything — these changes are always applied on our end. Simply update Flexi after the new version is released.
Removing a Child Tax Credit
When an employee stops claiming a child tax credit, it can be removed in ABRA Flexi as follows.
On the Payroll Parameters - Tax Credits tab, right-click on the field containing the child's name and select Clear Field. Do not delete the data from the Children tab, as there is a database relationship to the calculated payroll records during which the child tax credit was being claimed.
Once you make the change and attempt to save the employee record, Flexi will ask whether you want to apply the change to the existing setup or use the new setup from a specific date. In this case, you should again select the date from which the child tax credit actually stops being claimed:
