Payroll Canada Year End 2023
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
You may also set e-mail notifications for new PY-CA notes. See how on below article:
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
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:
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:
We do not accept comparison with PDOC, as this calculator cannot simulate all aspects of payroll of SAP HCM.
Frequently Asked Questions
- 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
- 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
- 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
- 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
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.
Jonas and Claudia