The CPP And QPP Imputed Earnings, When An Employee Is On Leave No Pay, Should Not Be In Exempt For CPP Wages. These Imputed Earnings Should Still Be In QPP Exempt
(Doc ID 2133554.1)
Last updated on FEBRUARY 17, 2019
Applies to:Oracle HRMS (Canada) - Version 12.1.3 and later
Information in this document applies to any platform.
On : 12.1.3 version, Canadian Payroll
Year End Phase I, <Patch 21911111>, delivered a change so that CPP imputed wages would no longer be exempt when a person is on leave. This change also impacted QPP wages as well and it should not have.
The CPP and QPP imputed earnings, when an employee is on leave and no actual pay, should not be in exempt for CPP wages. The rules for QPP are different. These imputed earnings should still be in QPP Exempt
The issue can be reproduced at will with the following steps:
1. An employee in Quebec that is on leave without pay but has an imputed earnings being processed
2. After the Year End Phase 1 patch these imputed earnings for CPP are no longer going to exempt earnings
3. The patch has also changed the way that QPP wages are being accumulated
4. The QPP wages accumulation should not have changed
5. The Exempt balance was updated in order to exclude the benefit from T4 Box 26, CPP pensionable earnings as per instructions from the Canada Revenue Agency. The CRA reporting rules have been changed and these taxable benefits must now be reported in Box 26. As a result, the Exempt balance is no longer being updated and the earnings are included in the 'Subject, 'Reduced Subject' and 'Taxable' or 'Excess' balances.
6. This change also impacted QPP wages and based on the wording on the RL1 it should not have.
The following amounts included in box A must not be entered in box G
• the value of a taxable benefit in kind if no amount was paid to the employee in cash or by cheque for the pay period
during which the benefit was granted
Applied Year End Phase I, <Patch 21911111>
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