You can get set up early for the second phase of the enhanced CPP and QPP introduced for the 2024 payroll year. There are a few things you’ll need to do to prepare for the new year.
Create the eCPP2 and eQPP2 codes: You’ll need to create two new Deduction/Benefit Codes to support the Canada Pension Plan enhancement and the Québec Pension Plan enhancement.
Add the codes to your G/L Benefit Groups: If you’re using G/L Benefit Groups, you’ll want to ensure those are updated.
Add them to your Employment Default groups: Adding to your Employment Defaults ensures eCPP2 and eQPP2 are processed for current and future employees. If you don’t have employment groups set up, go to Employment Defaults to learn more.
Add to employees: You can add the codes to all your employees using default groups or manually on each employee’s profile.
Confirm the codes are added to employees: Once you’ve added the codes to your employees, you’ll want to confirm that everyone is updated. To make it easy, we’ve provided a report to download at the bottom of the article.
Reviewing the eCPP2 and eQPP2 Rates: Check out this year’s rates in your CPP/QPP groups. This is updated annually during Initialize Employee Totals.
Viewing eCPP2 and eQPP2: Get insight into the eCPP2 and eQPP2 deductions and benefits processed during payroll. You’ll see this information throughout Avanti, in Payroll Reports, Vendor Remittance and Totals on the Employee Profile.
Avanti will start determining whether the eCPP2/eQPP2 threshold is met with your employee’s first pay in 2024. Once the threshold is met and deductions begin, they’ll appear automatically on your employees’ pay statements.
How to Create the eCPP2 and eQPP2 Deduction/Benefit Codes
Step 1: Open Deduction/Benefit Codes on the Avanti Desktop, and select the pension plan code you want to copy, right-click and select Copy.
By default, this can be found in Canadian Payroll >> Employer Payroll Tables.
Step 2: Right-click anywhere in Deductions/Benefits Codes, and select Paste.
Step 3: Enter Code and update the descriptions of the code:
Full Name
Short Name
French Name
French Abbrev
Additional Information
We recommend creating a code between 500 and 599, similar to your CPP and QPP deduction/benefit code.
Step 4: Update the Type.
Additional Information
You can find eCPP2 and eQPP2 at the bottom of the list. Be sure to keep the Calc. Step the same as the CPP or QPP code you copied.
Step 5: Update the G/L Liability Accounts for the Deduction and Benefits if they differ from the current selections.
Step 6: On the T-Slips tab, update the T4 Box.
Additional Information
This is box 16A for eCPP2 and 17A for eQPP2.
Step 7: On the T-Slips tab, select the RL-1 Box and click OK.
Additional Information
This is box B-2 for eCPP2 and B.B for eQPP2.
Step 8: Repeat Steps 2 to 7 to create your eQPP2 code if you have employees in Québec.
How to Update Your G/L Benefit Group
If you use G/L Benefit Groups, you’ll want to add these new eCPP2 and eQPP2 codes to your groups. If you don’t use G/L Benefit Groups, skip to the Updating Your Employment Defaults.
Step 1: Open G/L Benefit Group on the Avanti Desktop.
By default, this can be found in Canadian Payroll >> Employer Payroll Tables.
Step 2: Select a Benefit Group, then click Modify.
Step 3: Select Insert.
Step 4: Enter your new eCPP2 or eQPP2 in Benefit Code, add the G/L Account, and then click OK. Click OK again.
Step 5: Repeat Steps 2 to 4 for each G/L Benefit Group.
How to Update Your Employment Defaults
Now that you’ve created your new Deduction/Benefit Code, you’ll want to add it to your employment default groups.
If you’re not using Employment Default groups, you’ll want to add one so you can easily add your new eCPP2 and eQPP2 codes to all your employees. Go to Employment Defaults to learn more.
Step 1: In Maintain Employment Defaults on the Avanti Desktop, eelect the group you want to update and select Modify.
By default, this can be found in Canadian Payroll >> Employer Payroll Tables >> Employment Defaults.
Step 2: Select Insert on the Deductions tab.
Step 3: Select your new eCPP2 Deduction Code. Ensure the Code Type is Normal and the Active box is checked, then click OK.
Step 4: If you created an eQPP2 code, select Insert, pick it for Deduction Code, and click OK.
Step 5: Select OK to save your changes to the Default Group.
Step 6: Repeat Steps 1 to 6 for each of your Default Groups.
How to Add the Codes to All Your Employees
Using Employment Defaults, you can easily add the codes for all employees. If you’d like to add these codes manually instead, go to How to Manually Add the Codes to Employees below.
Additional Information
While you can add eCPP2 and eQPP2 codes to all employees, we recommend adding them based on the employee’s province of employment, as only employees who reside in Québec will require the eQPP2 code.
Step 1: Open Reapply Employment Defaults on the Avanti Desktop.
By default, this can be found in Canadian Payroll >> Employer Payroll Tables >> Employment Defaults.
Step 2: Select the Default Group you’ve updated with the new deduction codes.
Step 3: Select Reapply to all filtered employees.
Additional Information
Selecting this will update all employees regardless of their default group; it uses the filter to determine which employees to update.
Step 4: Select Active, your eCPP2 Deduction Code, then click Filter.
Step 5: On the Employee Profile tab, select Insert.
Step 6: To update employees in provinces other than Québec, select:
ProvEmploy for Field
<> for Condition
QC for Value
Step 7: Select OK, then click Exit.
Step 8: Select OK, then click OK again to add the code to your employees.
Step 9: A list of your updated employees displays. Select Exit.
Congratulations! You’re done updating your eCPP2 for all your employees. If you don’t have employees in Québec, skip to How to Manually Add the Codes to Employees.
Step 10: Open Reapply Employment Defaults on the Avanti Desktop.
By default, this can be found in Canadian Payroll >> Employer Payroll Tables >> Employment Defaults.
Step 11: Select the Default Group you’ve updated with the new deduction codes.
Step 12: Select Reapply to all filtered employees.
Additional Information
Selecting this will update all employees regardless of their default group; it uses the filter to determine which employees to update.
Step 13: Select Active, your eQPP2 Deduction Code, then click Filter.
Step 14: On the Employee Profile tab, select Insert.
Step 15: To update employees in provinces other than Québec, select:
ProvEmploy for Field
= for Condition
QC for Value
Step 16: Select OK, then click Exit.
Step 17: Select OK, then click OK again to add the code to your employees.
Step 18: A list of your updated employees displays. Select Exit.
How to Manually Add the Codes to Employees
Want to manually add eCPP2 and eQPP2 to your employees? You can do this on the Employee Profile in the Avanti Desktop.
If you’ve already added the codes to all employees, you’ll want to confirm that no employees were missed. To make it easier, we’ve created a report. Go to the Ensure Codes are Added to All Employees section below.
Step 1: Select the Employee on the Employee Profile in the Avanti Desktop.
Step 2: Select Insert on Deduction/Benefit Codes, select select the Deduction Code you’d like to insert, then click OK.
By default, this can be found in Deduction/Benefits.
Additional Information
We recommend adding eQPP2 for employees in Québec and eCPP2 for employees in other provinces.
Step 3: Repeat Steps 1 and 2 for each employee you want to add codes for.
Great job! You’re done updating your eCPP2 and eQPP2 for each employee.
Ensure the Codes are Added to All Employees
We’ve created a report so you can easily confirm whether all your employees have the new deduction/benefit codes added. You’ll need to import the report, then update it with the correct codes.
Employees without an eCPP2 code and eQPP2 code display at the top of the report, followed by employees with the codes.
You can find the import file at the bottom of this article. Once the report is downloaded, you can import it into your company and update it to your eCPP2 and eQPP2 codes.
Step 1: Open Report Definitions and select File, then Import and select where you saved the file.
By default, this can be found in Report Designer.
Step 2: Browse to the location you saved the import file. Select the file, then select Open.
Step 3: Enter a Definition Name, then update the Report Title if desired. Select OK to save the Report.
Additional Information
Once OK is selected, the Definition Name cannot be modified.
Step 4: Select the imported report, then select Modify.
Step 5: Select Columns 4 and 5.
Additional Information
Select Shift on your keyboard while selecting the columns to select multiple columns.
Step 6: Select the column beside Criteria in Column Settings, then select … to open the criteria.
Step 7: Select the eCPP2 and eQPP2 codes you created in the Available column. This moves the codes to the Selected column so they’re included in the report.
Step 8: If there are any codes in the Selected Column other than your eCPP2 and eQPP2 codes, select them to move them back to the Available column. Once only your eCPP2 and eQPP2 codes are in the Selected column, select OK.
Step 9: Select Apply to save your changes to the report, then click Print Report.
Step 10: Now, you can make your print selections and either save or print your report.
Employees with neither an eCPP2 code nor an eQPP2 code display at the top of the report. Then, employees with their codes will print.
Reviewing the eCPP2 and eQPP2 Rates
Now that you’ve set up your employees with the new codes, you can find this year’s rates in your CPP/QPP Groups in the Avanti Desktop. Each year, we’ll update these rates during Initialize Employee Totals. Check out Verify CPP and QPP Rates to learn more.
Viewing eCPP2 and eQPP2
Gain visibility into your employees’ eCPP2 and eQPP2 deductions and benefits in Avanti on:
Totals on the Employee Profile.
Vendor Remittance, Vendor Remittance Printing and Vendor Remittance Balance Reports for Receiver General and Quebec Receiver.
Receiver General Balance Report and Quebec Remitter Balance Report.
Payroll Reports and Pay Statements once the employee meets the threshold.
Report to Download
Here’s the report for you to download. Once it’s downloaded, you’ll need to import it into Avanti and update it with your eCPP2 and eQPP2 codes.
Go to the Ensure Codes are Added to All Employees section above to learn more.