Here are answers to all your questions during the CPP Enhancements Skill-Up Workshop. Here’s the video if you’d like to watch the webinar again.
Don’t miss out on the insights shared in the presentation; the slides from the Skill-up Workshop are attached at the bottom of this article.
Q: When is the year-end tax update expected to be released?
A: We always aim to release in mid-December each year. However, this timing is subject to many federal and provincial publications, such as payroll formulas and TD1 forms, and also factors in development and testing time. Since we’re still waiting for everything we need for the year-end release to be published, we cannot commit to a date when it will be ready. Stay on the lookout for the announcement; we’ll email you to let you know.
Q: Are there changes coming for the dental boxes this year?
A: Yes, absolutely! Our team is putting the finishing touches on product development right now for the new dental boxes, which will be included in the year-end tax release next month. Information about all the features and functionality will be published in our help centre articles once the year-end tax release is available; you’ll see links in the December release notes.
We’re also hosting another complimentary workshop early in the new year to walk you through the dental box reporting changes. You can register now.
Q: Are there changes coming to the remittance programs for the eCPP and eQPP?
A: Yes, you will see updates in all three of the Receiver General, Quebec Remitter, and Vendor Remittance programs to reflect the new eCPP and eQPP changes. We’ll include these in December’s year-end tax release.
Q: Have CRA and RQ confirmed the YMPE and YAMPE numbers yet?
A: The CRA and Revenu Québec announced the 2024 CPP and QPP rates and limits. For 2024, the YMPE, the first earning ceiling, is $68,500, and the YAMPE, the second earning ceiling, is $73,200.
Q: Why didn’t Avanti automatically add the new eCPP/eQPP codes to our systems?
A: While we would have loved to be able to do this for you since we know how busy payroll professionals are during the year-end time, a benefit of Avanti is that it is highly configurable; each client has a different numbering structure, preventing us from making mass change for everyone.
Q: How will the eCPP be handled on a biweekly payroll?
A: CPP calculations are based on pensionable earnings values during the pay processing. The eCPP doesn’t begin calculating until the first ceiling limit of $68,500 is reached. Once this first ceiling is surpassed and the eCPP deductions start, they’ll continue calculating until the second earning ceiling of $73,200 is reached.
If an employee reaches the first earning ceiling of $68,500 mid-period, eCPP starts calculating immediately. For this pay period, the employee sees two separate deduction amounts on their pay statement: a partial CPP deduction and an eCPP deduction. Their eCPP deductions continue until the employee reaches the second earning ceiling of $73,200.
Q: Do the eCPP deductions start from pay period 1 based on annual salary?
i.e. If an employee’s annual salary is less than the second earning ceiling, or the YAMPE, will Avanti deduct eCPP during their first pay period? Will you deduct eCPP for the employees with a higher annual salary than YMPE?
A: CPP calculations aren’t based on annualized salary during processing; they calculate based on current pay run processing values and YTD totals. Since eCPP deductions don’t start until the first earning ceiling of $68,500 is reached, it should not impact any employees’ first pay of 2024, unless there are lucky employees receiving large lump sums or bonuses higher than the $68,500 in the new year.
Folks earning less than $68,500 of pensionable earnings in the year won’t see any eCPP deductions at all. Higher-income earners, depending on their gross pay and the pay period frequency, may reach their second earning ceiling and max out the eCPP deductions in as little as one or two pay periods.
Q: I’ve added the new eCPP/eQPP codes to my system. How can I begin testing them?
A: The CRA and RQ have just published the 2024 payroll formulas, so Avanti isn’t ready yet to start performing the new calculations while we work through the development and testing of those over the coming days.
You can start testing the new deductions after the Year-End Tax Release in December. There’s a few things you’ll want to keep in mind while testing:
Use your test company to try out these changes; you’ll need to complete some irreversible processes during your testing.
Before you can start testing, you’ll need to initialize employee totals to close off your 2023 payroll year.
The eCPP/QPP deductions don’t start until an employee reaches the first earning ceiling of $68,500. To test the new codes, you’ll need to set up your 2024 pay year, then process and complete pays until an employee’s earnings surpass the first ceiling limit.
Q: Do you know if PDOC/WinRAS will be updated to reflect the new eCPP/eQPP changes? When will they be published this year?
A: We expect changes to PDOC and WinRAS to reflect the new changes and calculations for 2024, although we don’t know the specifics of what’s changing. Publication dates for both have not been announced, but we generally expect to see them around mid-December.
Q: Will there be new tax factors displayed in payroll processing?
A: Yes, some new tax factors will be reflected in the payroll processing results if you have Show Tax Factors selected when processing the pay run.
Q: Do I need to create a new/separate GL account for just the eCPP deductions?
A: Although we do not anticipate this being a requirement for our clients, please check with your finance department if you’re unsure. If you require assistance setting up a new GL account, we’re here to help! Reach out to our Client Care Team.
Q: How will box 45 on employees' T4 populate for employer-offered dental benefits?
A: We're providing a couple of options to populate box 45. Please join us for all the details at our free workshop on January 9th.
Q: Will deductions immediately start if we add the eCPP code in our live environment right now?
A: You can create these codes anytime before your first pay in January. If you set it up in advance, it won’t start processing until your employees have surpassed the first earning ceiling of $68,500 in 2024.
Q: I created the eCPP code and calc step changed automatically from 6 to 5. Does this impact anything?
A: The calc step should be the same as the code you copied from and will not impact anything. The calc step tells the system when the code is processed.
Q: Will the CRA Remittance report be updated to reflect the eCPP amounts separate from the regular CPP amounts?
A: Correct; once you have Initialized Employee Totals and closed your 2023 year, you’ll see an additional column for the eCPP contribution within your Vendor Remittance Report.
Q: How can we see when the next Skill-Up is?
A: Go to the Skill-Up Webinar Registration to sign up for the next webinar.
Additional Resources
Here are the links to additional resources mentioned during the Skill-Up.