EPY: CAN - Employee's CPP Taxable Gross is Showing a Large Negative Amount to be Refunded Back to Employee That is Turning 70
(Doc ID 2779300.1)
Last updated on MAY 28, 2021
Applies to:PeopleSoft Enterprise HCM Payroll for North America - Version 9.2 and later
Information in this document applies to any platform.
Employee's CPP taxable gross is showing as a large negative amount with an employee that is turning 70.
One employee's CPP taxable gross is showing as a large negative amount (No Limit Gross is fine) which is refunding the employee CPP.
YTD Tax Balances are correct.
The YTD CPP amount of 2,725.79 is correct for the YTD taxable earnings of 50,014.68. The calculated amount is exactly 5.45%.
The employee has earnings in the current Pay Period of 7,307.65.
Why would an employee who is turning 70 in June of 2021 would have CPP deductions refunded?
The issue can be reproduced with the following steps:
1. Employee is turning 70 in June 2021
2. Employee did not elect to be exempt from CPP (since the employee is over 65 and less than 70)
3. Employee had YTD CPP taxable earnings of 50,014.68 with a YTD Tax Amount of 2,725.79 as a balance adjustment
4. Run the first pay for the employee that has a taxable earnings of 7,307.65 in the current Pay Period
5. Employee is being refunded 1,142.56 with taxable CPP gross of negative 20,964.68
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