canada payroll and tax reporting year-end update 2020
TRANSCRIPT
INTERNAL
SAP
November 05, 2020
Canada Payroll and Tax Reporting Year-End Update2020
Special Edition
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Disclaimer
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Year-end 2020 Delivery
HR Support Packages, CLC and SAP Notes
Agenda
Upcoming Legal Changes
Dynamic Basic Personal Amount
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Year End 2020: CLC & HR Support Packages
ReleaseSynch Support Pack
( SAP_HR / EA-HR )
CLC for Canada
( SAP_HRCCA / EA-
HRCCA )
Base SP
( SAP_HR / EA-HR )
EHP8 for SAP ERP 6.0 / HR Renewal 2.0 80 / 80 85 / 85 85 / 85
EHP7 for SAP ERP 6.0 / HR Renewal 1.0 F2 / A3 F7 / A8 F7 / A8
EHP6 for SAP ERP 6.0 F2 / B4 F7 / B9 F7 / B9
EHP5 for SAP ERP 6.0 F2 / C9 F7 / D4 F7 / D4
EHP4 for SAP ERP 6.0 F2 / F2 F7 / F7 F7 / F7
EHP3 for SAP ERP 6.0 I6 / G0 J1 / G5 J1 / G5
EHP2 for SAP ERP 6.0 I6 / G5 J1 / H0 J1 / H0
SAP HR 6.00 I6 / I6 J1 / J1 J1 / J1
• Information also available in the One Support Launchpad
• SAP Note 2971350 - YE20: Main Note for Canadian Year End 2020
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Legal Changes / Corrections post May Sync SP
Component SAP Note Description
PY-CA-RP 2866434 BPS: Incorrect output for different Payroll Areas in same execution
PY-CA 2891141 Gross-Up: Incorrect calculation when function GRSUP is executed more than once for the same wage type
PY-CA-NT-GR 2900029 GARN: Québec Changes to Calculation of Seizable Portion of an Employee’s Income, Effective April 1, 2020
PY-CA 2901138 TAX: New Calculation of Canada Employment credit (K4) considers Pension Earnings incorrectly
PY-CA-YE 2903970 YE: Personnel Number specific processing functionality for T4 amendment
PY-CA-YE 2908116 YE: Invalid MRQ XML For Employee Without Valid Address In IT0006
PY-CA-YE 2926123 YE: Wrong Amount in Box B-1 and G-2 on the Relevé 1 in case of Transfer
PY-CA 2932492 TAX: Legal Changes Effective July 1, 2020
PY-CA-YE 2948922 Year-End Run Viewer - Issues With Void Run Button
PY-CA-YE 2956904 YE: T4 Processing Tax Reporting Units that Were Not Selected
PY-CA 2960679TAX: New Calculation of Canada Employment Credit (K4) Considering Regular Federal Pension Earnings Amount in Annual Gross Income
PY-CA 2968300 T4 reporting requirements for Year 2020 COVID19
PY-CA-YE 2970796 YE20: Year-end Canada 2020 Phase 1 - preparation for upcoming changes
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▪ T4127 - Payroll Deductions Formulas (CRA): Expected 16 November 2020
▪ TP-1015.G-V – Quebec Source Deductions & Contributions: TBD
▪ CPP / QPP Maximum Pensionable Earnings
▪ Federal /Provincial TD1 & Quebec TP-1015.3-V Basic Personal Amounts ( In Draft )
▪ Workers’ Compensation Maximum Assessable Earnings
Upcoming Legal Changes and Deliveries - Payroll
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▪ New T4 reporting requirements for Year 2020– Code 57: Employment income from March 15 to May 9
– Code 58: Employment income from May 10 to July 4
– Code 59: Employment income from July 5 to August 29
– Code 60: Employment income from August 30 to September 26
▫ SAP Note 2968300 released on 30th October 2020
▪ New T4, T4A & T4A-NR PDF Form Layout ( Updated 28 October 2020 )▫ In Analysis – Planned delivery
▪ Electronic Filing for T4 & T4A▫ In Analysis - Planned delivery CW 49/50
▪ RL-1 Slip ( RL-2 Not Published ) ▫ Planned delivery CW 49/50
▪ Electronic Filing for RL-1 & RL-2 ( Updated 30 October 2020 )
▫ In Analysis – Planned delivery CW 49/50
Upcoming Legal Changes and Deliveries - Reporting
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More information can be found here:
• 2543237 - YE: Print Year-end forms using Adobe Forms technology on RPCYERK0 report
• 2529182 - YE: FAQ Print Year-end forms using Adobe Forms technology
* SAP Script not planned for delivery in 2020
PDF Forms for HCM Canada
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TD-1 Basic personal amount – Every resident of Canada can enter a basic personal amount of $13,229. However, if your net income from all sources will be greater than $150,473 and you enter $13,229, you may have an amount owing on your income tax and benefit return at the end of the tax year. If your income from all sources will be greater than $150,473, you have the option to calculate a partial claim. To do so, fill in the appropriate section of Form TD1-WS, Worksheet for the 2020 Personal Tax CreditsReturn, and enter the calculated amount here.
If the estimated net income of an employee is more than $151,978 (2), a partial claim may be calculated using the TD1-WS
T4127 - Federal Basic Personal Amount: The federal Basic Personal Amount (BPAF) has been changed from $12,298.00 to the
following formula and the new factors BPAF and NI have been created
Either
Where NI* ≤ $150,473, BPAF = $13,229
Where $150473 < NI* ≤ $214,368, BPAF** = $12,298 + [($13,229-$12,298) - ($13,229-$12,298) × Lesser of (1, (NI* –
$150,473)/($214,368-$150,473))***]
Or
Where NI* ≤ $150,473, BPAF = $13,229
Where $150473 < NI* < $214,368, BPAF**= $13,229 - (NI* - $150,473) x ($931 / $63,895)***
Where NI* ≥ $214,368, BPAF = $12,298
* Variable NI represents Net Income = A + HD
Basic Personal Amount - Definitions
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• Enhance Federal Tax (Infotype 0463) to record BPA as provided in the TD-1. Currently only total credits are recorded and
the BPA is not recorded
• Enhance the payroll driver to compute dynamic BPA
• Configuration to determine if BPA from TD-1 is to be used for computation or BPA from the payroll driver is to be used
during payroll.
• Enhance Tax Update Utility (Program RPUTXUK0) to process BPA
• Planned delivery post publishing of T4127 ( Subject to change )
* Limitations foreseen for the Tax Update Utility ** Yukon has a similar concept and is being evaluated
Basic Personal Amount – Proposed Solution
Appendix
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SAP One Support Launchpad
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The following apps are available to you on the Launchpad:
Announcement of
Legal ChangeMy SAP Notes & KBAs SAP Legal Change Notes
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SAP HR Support Packages
Support.sap.com > Maintenance > Maintenance Information > Schedules for Maintenance Deliveries
https://support.sap.com/en/release-upgrade-maintenance/maintenance-information/schedules-for-maintenance-deliveries.html
Contact information:
Viswanath Ramamurthy
Director – Product Management
Globalization Services
Thank you.