The Government of Canada has implemented the second phase of additional Canada Pension Plan contributions, known as CPP2. These contributions will be automatically deducted from earnings that exceed the annual maximum pensionable earnings of $68,500.
This setup has been completed automatically for your account and applies to all employees who are currently subject to CPP deductions. Eligible employees will see the new deductions on their 2024 pay stubs once their pensionable earnings exceed the annual maximum
Action Required: We strongly recommend that you review the following for accuracy:
Tax/Deductions: Go to Payroll ->Taxes & Deductions to ensure that "CPP2" and "CPP2 - Employer" records are assigned to the correct employees. If you have any employees that have opted out of CPP, ensure they are opted out of CPP2 as well.
Remittance Summary Tax Report: Go to Report -> Tax Reports -> Remittance Summary, Form Setup tab, ensure that "CPP2" and "CPP2 - Employer" is included in the "Employee/Employer CPP2" field.
New Hire Defaults: Go to Employee -> New Hire Defaults -> Taxes & Deductions to ensure that all new hires are assigned to "CPP2" and "CPP2 - Employer" Tax/Deductions in addition to "CPP" and "CPP - Employer".
T4 Summary Report: Go to Report -> Tax Reports -> T4 Summary, Form Setup tab, to ensure that "CPP2" Employee Deduction is included in the Employee CPP2 (Box 16A) Form Setup field and the "CPP2 - Employer" Employer Deduction is included in the Employer CPP2 Form Setup field.
General Ledger Summary: If you use this report to export data to your accounting software, go to Payroll -> Pay Stub Accounts to confirm that "CPP2" and "CPP2 - Employer" are mapped to the proper GL accounts.
Your TimeTrex settings have been configured to ensure a seamless transition to these new deductions, however not all situations can be handled automatically so your manual review is required.
As always, please contact our support department if you have any questions or need further clarification.
Tax Reports:
T4 - Dental Benefit Code (Box 45) has been added to the Form Setup tab to indicate the type of dental benefit plan (if any) offered to your employees. If all employees are offered the same type of plan:
Go to Reports -> Tax Reports -> T4 Summary.
Click the Form Setup tab.
Choose the code that matches your plan in the Dental Benefit Code (Box 45) field.
However, if you offer multiple plans to different groups of employees, custom fields at the branch, department, title or employee level can be used to handle those situations. For example, if employees in the "Managers" department are offered a different plan than those in other departments, use custom fields at the department level.
Go to Report -> Tax Reports -> T4 Summary.
Click the More button at top right.
Click Create Custom Fields to automatically create the custom field at the employee level.
If you prefer it at a different level, you can go to Company -> Custom Fields, and Copy as New to copy it to any other level, and delete it from the Employee level.
Choose the code that matches your plan for the custom fields you created above. (ie: Edit each Employee record, or Department record)
Go to Reports -> Tax Reports -> T4 Summary.
Click the Form Setup tab.
In the Dental Benefit Code (Box 45) field, choose "-- Custom Field --", then choose the custom field that you created above.
at top right.