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How to configure Employee Saving Plan for Canada?

Jun 19, 2017 at 07:12 PM

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I am doing a configuration where I need to move the employees from an exiting plan to ESP plan where in I should enable Payroll to initially update the contribution percentages from 0 to 12 and it also needs to be enabled in ESS for the subsequent months so Employees can directly update?

1. Should I create multiple wage types for each percentage? Or is there a way to create/ configure these list of percentages directly?

I also need to generate an interface capturing a set of information including Employee and Employer contributions based on the percentage.

2. How do I configure the interface to capture the contributions?

Appreciate a quick response please.

Thanks!

Ram

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Best Answer
Rémi Corriveau Jun 20, 2017 at 04:45 PM
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To your first question, you should be able to get by with one WT for the Employee's Contribution and one WT for the Employer's Contribution, and you should be able to create many Plans, each with a set percentage (Pre-YMPE and Post-YMPE).

As to the Interfaces, you should first define your needs, and then talk to an ABAP programmer. The Ad-Hoc Query should enable you to report on the employee's IT0169 (Plan and Contribution Percentages), while the WT Reporter should enable you to report on the actual Contributions.

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Thank you Remi for your response.

How the Employer contribution needs to be worked out. The scenario goes like this,

Employee --> Can choose contribution percentage between 0 to 12 % (in even percentages)

Employer --> Contributes one third of the EE contribution up to 6% and above that it is flat 2% (for 7 to 12%)

Do we create z-processing class and insert a rule to determine the calculations?

And please let me know what Pre, Post YMPE and why do we need to create two WT?

Thanks!

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On the requirement that Employee Contributions must be "in even percentages", an ABAP programmer should be able to create that check upon saving IT0169 and give an error with the appropriate message if the percentage has decimals.

On your requirement that the Employer's Contribution is 33% of Employee Contribution if Employee chooses 1% to 6%, or that the Employer's Contribution is 2% of Employee Contribution if Employee chooses 7% to 12%, you should be able to manage that with 2 Plans (one for each Employer Contribution Rate).

Calculations could be based on Cumulation WT /171, or you may choose an other way.

The Yearly Maximum Pensionable Earnings (YMPE) is set by Service Canada for the Canada Pension Plan. For 2017, the YMPE is 55300.00 $. In the Pension Plan Configuration Tables (such as V_74FH_C), SAP sometimes uses Pre-Tax and Post-Tax. Also look at Feature PYMPE.

As for WTs, you will need one for the Employee Contribution (a deduction) and one for the Employer Contribution (a Company Expense).

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