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E1: 77: Legislative Enhancement - Canadian 2023 CPP QPP F5 Deduction Phase 1 and 2024 CPP C2 QPP Q2 Deduction Phase 2 (Doc ID 2913997.1)

Last updated on JANUARY 30, 2024

Applies to:

JD Edwards EnterpriseOne Canadian Payroll - Version 9.2 and later
Information in this document applies to any platform.


Summary of Legislative Change for Phase 1

Effective January 1, 2023, the tax deductibility for the enhanced portion of employee CPP/QPP contributions will be implemented. A new deduction calculation (F5) was introduced. The base portion of CPP/QPP contributions will remain as tax credits. The new F5 deduction is treated as a calculated deduction against the taxable wages. The Current Adjusted Gross that is returned for the Tax will also be reduced by F5. The returned Current Adjusted Gross will be the net amount of the calculated F5, along with any additional deductions passed in by the customer.

Vertex requirement for 2023 CPP QPP F5 Deduction Phase 1 is Vertex 4.4.7.


Summary of Legislative Change for Phase 2

The Canada Revenue Agency has planned a second earnings ceiling for the Canadian Pension Plan (CPP) and Québec Pension Plan (QPP) contributions. Changes to the CPP/QPP deduction calculations and their impacts to the federal and provincial withholding values are effective January 1, 2024.

Terminology is used for this new contribution:
C2/Q2 - The additional contributions, known as the Second Additional Contribution
YAMPE - The new limit, called the Year's Additional Maximum Pensionable Earnings or second earnings ceiling

Vertex requirement for 2024 CPP C2 QPP Q2 Deduction Phase 2 is Vertex 4.5.0.





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