The CRD approval allows the payroll person of the church to reduce the gross taxable income by the amount being claimed for clergy residence when calculating income tax and CPP.  EI is still payable on the entire amount of employment income.

The amount approved for CRD is then divided by the number of months remaining in the year (12 months) and deducted from the gross monthly salary.  Confluent Accounting users will need to adjust the Employee Record to reflect amounts for CRD.