| CANADIAN: Second Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) |
Description | Beginning in 2024, Revenue Canada instituted a new tier for Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) contributions. This new tier applies to pensionable employee earnings that exceed the current wage ceiling but are below a new, higher ceiling. Revenue Canada refers to these calculations as the second CPP and the second QPP. |
Resolution | Adding the second CPP or QPP payroll calculations
- Open the 5-3-1 Payroll Calculations window.
NOTE: CPP or QPP calculations for employee/employer contributions must exist before adding calculations for the second CPP or QPP. - Click File and New.
- Assign a number to identify the new calculation in the data control box.
- Enter a description in the Description box.
- Select the tax type from the Tax Type picklist, matching the employee or employer CPP or QPP calculation.
- '20 - Employee Second CPP Contributions'
- '21 - Employer Second CPP Contributions'
- '22 - Employee Second QPP Contributions'
- '23 - Employer Second QPP Contributions'
- Press the tab key out of the field:
- The corresponding Calculation Type, Calculation Method, Max Type, and Subject To fields are automatically selected
- The corresponding Default Rate and Default Max are automatically entered from the current tax tables
- Specify the accounts affected by the payroll calculation:
- Enter the liability account number to credit in the Credit Account box.
- Enter the ledger subaccount number to credit, if applicable, in the Credit Subaccount box.
- Click Update Employees, Update Default Rate and Maximum, ALL Employees from the Options menu.
NOTE: This will also save the calculation and update employee records. - Repeat steps 2 through 7 to add other employer and employee CPP and QPP calculations, as needed.
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