PY-CA YE 2016 : Releases.

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

 

Mid Year Tax changes effective 1st July 2016

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:
$250; and
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:
$750; and
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

 

What is CNT?

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

 

What is CEC?

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.

 

CPP/QPP Rates for 2015 and 2016

CPP contribution rates, maximums and exemptions
Year Maximum annual pensionable earnings Basic exemption amount Maximum contributory earnings Employee and employer contribution rate (%) Maximum annual employee and employer contribution Maximum annualself-employedcontribution
2016 $54,900 $3,500 $51,400 4.95 $2,544.30 $5,088.60
2015 $53,600 $3,500 $50,100 4.95 $2,479.95 $4,959.90
2014 $52,500 $3,500 $49,000 4.95 $2,425.50 $4,851.00
2013 $51,100 $3,500 $47,600 4.95 $2,356.20 $4,712.40
2012 $50,100 $3,500 $46,600 4.95 $2,306.70 $4,613.40
2011 $48,300 $3,500 $44,800 4.95 $2,217.60 $4,435.20
2010 $47,200 $3,500 $43,700 4.95 $2,163.15 $4,326.30

Maximum pensionable earnings for 2016

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.

ROE XML Version 2.0

Recently CRA announced a new version of ROE XML 2.0 which will be effective from 31st March 2016.

CRA1

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).
  • Employees Postal Code (B9 – PC): this tag is contained within the Employees Information (B9) and reports the employee’s postal code, which is no longer reported in the Employees 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 ROESeparation 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:

VC_T51T8_A
V_T5K1R
V_T5KR2
VC_T51T8
V_T5K1E

Note: Refer note : 2225592 for correction instructions on this.

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PY : Whats the Difference between for-period and in-Period?

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.

In-Period

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.

For-Period

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.

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PY-CA : Garnishment in Canadian Payroll – some info.

Garnishment is one of the widely used calculations and is very important part of the Payroll calculation in Canadian Payroll.

Infotypes used:

  • 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