The following are the notes for Mid year tax changes for 2017.
a. 2477509 – TAX: Tax update effective July 1, 2017
b. 2480030 – TAX: Activate influx principle for tax changes
effective July 1, 2017
These are manual changes and are to be done in Tables T5KTC and T511K.
The Year end master note is out.
The following are the notes.
2369480 – YE16 – Master Note for Canadian Year End 2016, where it gives the list of OSS notes that they released as part of year end
2392633 – TAX – Legal changes effective January 1 2017, All the legal changes indetailed will be mentioned
2394813 – TAX Transport Files for SAP Note 2392633, Transport list that we need to install into the system
SAP has released Mid year tax changes effective 1st July 2016.
Tax rates has been changed for Provinces, Federal Tax rate has been changed for PE and Many new slabs have been introduced for NF.
There is changes to rates for SLVCCs as well.
Rules for SLVCC
For purchases of approved shares in federally registered LSVCCs, the formula for 2016 remains:
LCF = The lesser of:
5% of the amount deducted or withheld during the year for the acquisition, by the employee, of approved shares of the capital stock of a prescribed labour-sponsored venture capital corporation.
For purchases of approved shares in provincially registered LSVCCs, the formula for 2016 is changed to:
LCF = The lesser of:
15% of the amount deducted or withheld during the year for the acquisition, by the employee, of approved shares of the capital stock of a prescribed labour-sponsored venture capital corporation.
The following are the OSS notes :
Master note – 2300133
Main Note – 2321814 – TAX: Tax update effective July 1, 2016
Additional Note for NF slab changes – 2326420
CNT is Commission des normes du travail.
CNT is a legal person created in the public interest within the meaning of the Québec Civil Code. The Commission reports to the Minister of Labour.
It was created as per the labour standards in 1980.
The following are the activities of CNT
- communication and prevention activities with the public, employers and employees
- providing information on labour standards and on the obligations stipulated by the Act and the regulations
- monitoring the application of the Act respecting labour standards, its regulations and the National Holiday Act
- recording complaints, investigations, mediation, civil and penal proceedings, representation of employees before the courts and before the Commission des relations du travail
- authorization of the applications to stagger working hours
- research and analysis work, surveys, opinions and recommendations intended for the Minister of Labour.
In the carrying out of its mission, the Commission teams up with departments and public organizations, including the Ministère du Travail, Revenu Québec, Emploi Québec and the Commission des relations du travail. It also works in partnership with employee and employer associations.
For Year 2016 :
The portion of the remuneration in excess of $71,500 (instead of $70,000) is not subject to the contribution to the financing of the CNT for 2016
I came across this good concept in Canadian Payroll and in this years tax changes there is a mention of this CEC.
What is CEC?
CEC is otherwise called as Canada employment credit.
As per CRA:
Its the Canada employment amount which provides recognition for work-related expenses such as home computers, uniforms and supplies in the public and private sector.
Self-employed individuals are not eligible to claim this amount.
It can be claimed on line 363 of schedule 1.
For Year 2016:
The Canada employment credit (factor K4) is the lesser of:
(i) 0.15 × A; and
(ii) 0.15 × $1,161.
The Canada Revenue Agency announced that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2016 will be $54,900—up from $53,600 in 2015. The new ceiling was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.
Contributors who earn more than $54,900 in 2016 are not required or permitted to make additional contributions to the CPP.
The basic exemption amount for 2016 remains $3,500.
The employee and employer contribution rates for 2016 will remain unchanged at 4.95%, and the self-employed contribution rate will remain unchanged at 9.9%.
The maximum employer and employee contribution to the plan for 2016 will be $2,544.30 each and the maximum self-employed contribution will be $5,088.60. The maximums in 2015 were $2,479.95 and $4,959.90.
Recently CRA announced a new version of ROE XML 2.0 which will be effective from 31st March 2016.
CRA XML Version 2.0 Specification Link http://www.servicecanada.gc.ca/eng/services/ei/employers/roe/resources/roewebur53payrollextract.shtml
For this, SAP Released a new note for ROE XML version 2.0.
Note – 2206524 – ROE: XML File Layout and Edit – VERSION 2.0
The following are some of the changes suggested :
- Dates: the format of all dates has been changed from DDMMYYYY to the ISO 8601 format (YYYY-MM-DD).
- Employee’s Postal Code (B9 – PC): this tag is contained within the Employee’s Information (B9) and reports the employee’s postal code, which is no longer reported in the Employee’s Address Line 3 (A3).
- Total Insurable Earnings (B15B): this box is no longer being reported. CRA calculates this amount based on the data provided in other tags.
- Reason for Issuing this ROE– Separation Code (B16 – CD): a new field has been introduced in the Reason code for issuing a ROE
Some of the related notes :
2211595 – ROE: dictionary objects for SAP note 2206524
2220338 – ROE: Technical changes required for ROE 2.0
There are changes suggested to the following tables in the manual instruction:
Note: Refer note : 2225592 for correction instructions on this.
It comes back to us many times … these periods. In-Period and for-period. Many of my friends are well versed with this, But I thought to share this, so that some of my other friends who wants to know further on this will have a clear idea what these Periods mean in SAP Payroll.
It’s the Current Period where Payroll is Running
The in-period (start and end date of a period) is the payroll period in which a payroll result is generated.
The period till which its going back retro.
The for-period (start and end date of a period) is the payroll period for which a payroll result is generated.
Garnishment is one of the widely used calculations and is very important part of the Payroll calculation in Canadian Payroll.
- Garnishment orders (Infotype 0066)
- Garnishment debts (Infotype 0067)
- Garnishment adjustments (Infotype 0068)
Function used : KGARN
Technical wage types:
/G00 – Garnishment/Net or called as Disposable Net
/G01 – Garnishment/Gross or called as Gross for Garnishment
/G02 – Garnishment/Non-ex. money or called as Completely Non-exempt
/G03 – Garnishment/Sum or called as Garnishment Total Amount Deducted