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EPY: CP2 & QP2 Adjustments For Proration Of Annual Maximums Are Self-Correcting To Zero (Doc ID 3063018.1)

Last updated on DECEMBER 10, 2024

Applies to:

PeopleSoft Enterprise HCM Payroll for North America - Version 9.2 and later
Information in this document applies to any platform.

Symptoms

QP2 Adjustments for proration of annual maximums are self-correcting to zero

Upon receipt of RR-50-V (Revenu Quebec form to stop contributing to QPP submitted to the employer by the employee), a new row is added to the Update Employee Tax Data page and the Months Subject to CPP/QPP field for the employee (the date the row was added is used as the effective date) is updated to the number of months elapsed at the time the form was signed - for example, if the form was signed May 10th 2024 - the Months Subject to CPP/QPP field would be populated with a value of 5. Prorated maximum QPP and QP2 contributions and pensionable earnings for the number of months subject to QPP will then be manually calculated by the agent. When an employee's YTD QPP contributions/pensionable earnings exceed the calculated prorated Annual Maximums - the Payroll agents will then process balance adjustments to the QPP and QP2 taxable gross and no limit gross to reflect the prorated maximums. Balance adjustments will also be processed to transfer excess QPP contributions to QP2 to fulfill the prorated QP2 contribution requirement. Once all balance adjustments for QPP and QP2 have been calculated, an off-cycle payment will be processed to refund the remaining QPP over-contributions to the employee via Create Online Cheque.

CP2 Adjustments for proration of annual maximums are self-correcting to zero

Upon receipt of CPT30 (Canada Revenue Agency form to stop contributing to CPP submitted to the employer by the employee), a new row is added to the Update Employee Tax Data page the Months Subject to CPP field for the employee (the date the row was added is used as the effective date) and the Months Subject to CPP field is updated to the number of months elapsed at the time the form was signed - for example, if the form was signed May 10th 2024 - the Months Subject to CPP field would be populated with a value of 5. Prorated maximum CPP and CP2 contribution and pensionable earnings for the number of months subject to CPP will then be manually calculated. When an employee's YTD CPP contributions/pensionable earnings exceed the calculated prorated Annual Maximums - the Payroll agents will then process balance adjustments to the CPP and CP2 taxable gross and no limit gross to reflect the prorated maximums. Balance adjustments will also be processed to transfer excess CPP contributions to CP2 to fulfill the prorated CP2 requirement. Once all balance adjustments for CPP and CP2 have been calculated, an off-cycle payment will be processed to refund the remaining CPP over-contributions to the employee via Create Online Cheque.

Currently, when the agents process an off-cycle payment Peoplesoft is self-correcting QP2 or CP2 (Enhanced QPP or CPP) balances to zero - refunding the contribution amounts and creating negative taxable and no limit gross entries on the payment to reduce the YTD balances to zero; essentially undoing the balance adjustments processed.


The issue can be reproduced with the following steps:

1. Create a monthly Pay Group - Set up HCM>Product Related>Payroll for North America>Payroll Processing Controls>Pay Group Table

2. Hire an employee effective 01/01/2024 - Workforce Administration>Personal Information>Add Person

3. Confirm 7 pay periods - NO CP2 or QP2 included. YTD CPP or QPP Txgrs is 46,958.38

4. Go back to Update Employee Tax Data and insert a row effective date 5/10/2024 and populate the Months subject to CPP or QPP field with a value of 5 - Payroll for North America>Employee Pay Data CAN>Tax Information>Employee Tax Data

5. Create paysheets for the next pay period - Payroll for North America>Payroll Processing CAN>Create and Load Paysheets>Create Paysheets

6. Run the payroll calculation - Payroll for North America>Payroll Processing CAN>Produce Payroll>Calculate Payroll

7. Verified the Review Paycheque and no CPP or QPP was taken but there was no refund processed - Payroll for North America>Payroll Processing CAN>Produce Payroll>Review Paycheque

8. Went to the balance adjustment and back out the NLG and Taxable Gross for Period 6 and Period 7

9. Ran the payroll calculation again and the review paycheque taxes showed no CPP or QPP refund.

 

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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