Canada Year End 2022 - CPP/QPP additional contributions treated as deduction at source

[ejaz1]

SAP recently released a Note - "3248911 - YE22: Income tax regulation amendment - CPP/QPP additional contributions treated as deduction at source"

This is causing issue if you have split in the very first pay period of the year, for e.g. if your pay period is from 12/25/2022 to 1/7/2023 and you have updated the Tax Info types from 1/1/2023 this results in a payroll split, the calculation for additional contribution is wrong and it is calculating wrong amounts on the newly added WT /308 . There should be no additional calculation since this is the first period and employees has not even reached the CPP contribution limit for 2023

Has anyone else tested this scenario and facing the same issue..

[ejaz1]

SAP released a Note for this - 3280474 - New factors F5A and F5B incorrectly calculated

Ejaz

[c64_fanboy]

Thanks Ejaz. I saw that also. Now testing it. Thanks.

[c64_fanboy]

We are having similar issues. Please share the answer if/when you get this resolved. Thank you.

[ejaz1]

Yes certainly , I have open an incident with SAP as well.

Ejaz

[former_member548187]

Ejaz,

Thanks....that note did help with the year cross-over. However, we are questioning whether the /308 should even be listed at all. We can't find documentation that anything should be taken out for this, but it is definitely showing on our remuneration statements. Can you confirm that we should be taking out the additional dep pension? Thanks.

Steve French

[ejaz1]

Hi Steve,

/308 should not show up on your remuneration statement, so make sure to set the evaluation class to not show on statement. I did the same , as it was showing my statements as well while testing .

/308 is not a deduction that is coming out of the employees pay , it is in fact just used for tracking on how much additional CPP contributions were deducted from source .

Thanks

Ejaz

[former_member548187]

Ejaz,

Thanks so much for the quick response. I finally got it to work as expected.

Steve French

[NWL]

Steve, we are in same boat trying to understand /308 1% additional calculation. I believe CPP is correct at 5.95 but not sure how /308 is used. it will be really helpful if you can share how you got it worked. thanks

AK

[former_member548187]

We applied note 3280474, but it made the situation worse. It threw off our CPP amount more than previously and put even more tax in the /308 for our test employees.

Steve French

[ejaz1]

Steve,

Apply this Note - 3280515 - YE22: Corrections to SAP Note 3248911

We had similar issue's and this note resolved it

[R_Chohan]

Hi,

In the pay period where CPP contribution is being maxed out (PP15, 2023 in our case) and in all the following periods (PP16 to PP26), employee total tax is off by $30ish when comparing with PDOC. it seems that PDOC is still giving additional CPP contribution tax credit even when there is no CPP contribution for the pay period.

Maybe SAP taxes are accurate but PDOC needs an update.

Anyone with the similar issue? Please share your thoughts.

Thanks.

[ejaz1]

Did you apply this recently released Note - 3280515 - YE22: Corrections to SAP Note 3248911

Ejaz

[R_Chohan]

Yes, we did apply this note already, Maybe this note is for some other fixes.

[former_member548187]

Sohaib,

We are having the same issue...that SAP is not matching the PDOCs. CPP and EI match, but the additional pension ded amount is causing us not to match. We applied all the notes, but we are still having /308 appear on our statements. If anybody can confirm that this is correct, I'd appreciate it. Thanks.

Steve French

[R_Chohan]

Hi Steve,

SAP has release note 3284290 this morning and it fixed tax calculation when CPP is maxed out.

Thanks .