Canadian Pension Plan CPP_C2 (Second Additional Tax) for Employees Incorrect Deduction and No Employer Liability Accrual Refund > 70 Years of Age
(Doc ID 3021106.1)
Last updated on MAY 07, 2024
Applies to:
Oracle HRMS (Canada) - Version 12.1.3 and laterInformation in this document applies to any platform.
Symptoms
Canadian Pension Plan (CPP) deduction should be applicable till end of Feb-2024 and stop in the first Pay in March-2024.
Per Canadian Revenue Agency (CRA) rules, employees must continue to make CPP contributions until the last pay period with a pay date in the month in which they turn 70 years of age.
Per CRA rules: an employer may have to pro-rate an employee’s maximum CPP contribution where the employee turned 70 during the year.
However, in the past, Oracle Tax did not do this proration, and the CPP contribution would just stop in the following month employee turns 70.
STEPS
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The issue can be reproduced at with the following steps:
1. Submit the employee's quick pay observe the CPP should be taken until the end of February 2024.
2. CPP should Stop withholding in March 2024.
3. Per Canadian Revenue Agency (CRA) rules, employees must continue to make CPP contributions until the last pay perod with a pay date in the month of which they turn 70 years old.
4. The application is refunding the CPP2_EE portion.
5. Observe the CPP2_ER Liability did not refund.
Changes
CRA legislative updated regulations
Cause
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In this Document
Symptoms |
Changes |
Cause |
Solution |
References |