Canadian Payroll: CPP Retro Exemption is Incorrectly Created in Second Pay Period of the Year
Last updated on NOVEMBER 20, 2017
Applies to:Oracle HRMS (Canada) - Version 12.1.3 and later
Information in this document applies to any platform.
CPP Retro Exemption Element entries are created in the second period of the year when they should not be created and the amounts are wrong.
Pay Period 1 of calendar year has 'regular' retro element entries (negative values) for prior calendar year as well as CPP Retro Exemption elements. Payroll is run and CPP Retro Exemption elements are not processed as they are for a prior calendar year. CPP pensionable earnings are calculated as current period earnings minus retro earnings. CPP contribution is based on that amount which is correct.
Pay Period 2 of the calendar year has retro earnings for pay period 1 which are also negative. CPP Retro Exemption elements are created for the retro earning as well as for the difference between what was used for taxable in pay period and earnings for the current year which is incorrect.
The issue can be reproduced at will with the following steps:
1. Run Payroll in period 1 with retro entries for prior calendar year
2. Run Payroll in period 2 with retro entries for period 1
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