Payroll Canada Year End 2023

Greetings from SAP HCM Canada Support team!

On this blog we will share news, important Notes and changes related to Canada Year End 2023.

If you have questions about 2023 Canada Year End, please ask away with a comment to this post.

Legal Changes for Canada

To review the planned Legal changes for Canada, check the Announcements of Legal Change application. See how to use this tool on this blog.

You may also set e-mail notifications for new PY-CA notes. See how on below article:

2478289 - How to set up notifications for SAP Notes and/or KBAs with Expert Search filters

ASUG Webcast

SAP HCM Canada Payroll and Tax Reporting Year-End Update 2023

Date: November 8, 2023
Time – 11:30 Pacific time (14:30 ET); Duration: 1.5 hrs ( 1 hour 30 minutes)

Register at ASUG > Events > SAP HCM Canada Payroll and Tax Reporting Year-End Update 2023

Main SAP Note and minimum mandatory HRSP for Year End 2023

3373115 - Main note for Canadian year-end 2023

The minimum mandatory HRSP for Canadian Year End in fiscal year 2023 is specified in the above Note, according to the software release.

The system must be updated to the minimum required HRSP to work correctly.

If you face an issue that is caused by not having the minimum HRSP, we will suggest the HRSP upgrade.

CPP additional contributions to be treated as a deduction at source - second part

As announced in the Legal Change Announcements application [CPP 2023] [CPP 2024], in 2024 a year's additional maximum pensionable earnings is introduced.
See more in CRA page "What is the CPP enhancement".

The SAP Note below delivers the required changes for Option 1 published by CRA:

3334052 - YE23: CPP/QPP second additional contribution

All Notes that follow will be mentioned in Year End Main Note.

Reporting a tax calculation issue

In case you identify issues with tax calculation, please report a case and provide your analysis as per the approach below:

3314325 - How to report tax calculation issues in SAP HCM Canada?

We do not accept comparison with PDOC, as this calculator cannot simulate all aspects of payroll of SAP HCM.

2658386 - Differences in tax calculation between SAP and CRA PDOC

Frequently Asked Questions

1. New Wage Types in your system after upgrading to the minimum required HR Support Package: /314, /315, /3F2, /3F3, /3F4, /3F5, /3P2, /3P3, /3P4, /3P5These Wage Types were introduced in HRSP via SAP Note 3345263.
   They are part of enhancement for tax calculation based on Province of Residence.
   This enhancement was not yet released. The purpose and significance for each WT will be in the SAP Note
2. Will SAP deliver the changes to T4 slip regarding boxes 16A, 17A and 45A?
   
   Yes, required legal changes will be delivered in time for testing and publishing of T4 slips.
   The Legal Change announcement was already published by SAP, you can check the planned delivery date: T4 -- T4AThe necessary changes will also be delivered for Relevé slips: RL-1 -- RL-2
3. Will Form RR-50: Election to Stop Contributing to the Quebec Pension Plan or Revocation of an Election be delivered by SAP?
   
   Yes. The Legal Change Announcement was already published [LINK]
   The Note was also already released: 3398689 - YE23: Election to stop contributing to the QPP or revocation of an election
4. Factor I (Gross Remuneration for the pay period) is wrongly calculated after HR SP upgrade
   
   This happens due to missing configuration, please read KBA 3396530 - Factor I is wrongly determined in KATAX ICTX
5. Why are boxes 16A and 17A not being filled in T4 2023?
   
   Boxes 16A and 17A will only be populated for fiscal year 2024 onwards.
   You can confirm it in this CRA page: [LINK]
6. New boxes 16A, 17A and 45 are not even displayed in new form. Why?Check and ensure you have the constant YENFF set up with YES in view V_T5F99K2.
   This will enable system to look for PDF form instead of SAP Script form.
   
   2911945 - YE19: T4/RL printing as SAP Script instead of PDF forms 
7. New Wage Types /316 and /317 do not have text in French.Translations are available through the respective HR Support Package.
   If the Wage Types were delivered via Note and not HRSP upgrade, it is expected that translation is not available.
8. PIER report does not show CPP2 / QPP2 separately and calculates deficiency
   
   As per SAP Note 3410650 , the changes for PIER report to include second additional CPP/QPP contribution are under evaluation and not yet delivered.
   
   At this point, the requirements for PIER report are still not clear, as the PIER process for CPP2 and QPP2 are only relevant at the end of 2024.
   
   A change to the PIER report is planned for delivery in 2024, subject to clarification of the requirements from the CRA.
   At this time, the requirements are being actively reviewed.
   
   Information about the changes will be communicated through the standard channels, either through Notes or Legal Change notifications.

Questions and feedback

This is the first blog edition of Payroll Canada Year End.
In previous years we used KBAs for this purpose.
Your feedback and constructive criticism are appreciated.

As already mentioned, feel free to comment on this post if you have questions about 2023 Canada Year End.

Kind regards,

Jonas and Claudia