Beginning in 2024, Revenue Canada instituted a new tier for Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) contributions that apply to pensionable employee earnings that are above the current wage ceiling and below a new, higher ceiling. Revenue Canada refers to these calculations as the second CPP and the second QPP.

Adding the second CPP or QPP payroll calculations

1. Open the 5-3-1 Payroll Calculations window.
    NOTE: You must have existing CPP or QPP calculations for employee and employer contributions before adding calculations for the second CPP or QPP.  
2. Click File and New.
3. Assign a number to identify the new calculation in the data control box.
4. Enter a description in the Description box.
5. 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
6. 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
7. 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.
8. 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.  
9. Repeat steps 2 through 7 to add other employer and employee CPP and QPP calculations, as needed.

CANADIAN: Quebec indexation rate has changed