Presentation on theme: "] COREY PEARSON [ ASUG INSTALLATION MEMBER MEMBER SINCE: 2008 CHAVONE JACOBS [ ASUG INSTALLATION MEMBER MEMBER SINCE: 2003 ALLAN FISHER [ ASUG INSTALLATION."— Presentation transcript:
] COREY PEARSON [ ASUG INSTALLATION MEMBER MEMBER SINCE: 2008 CHAVONE JACOBS [ ASUG INSTALLATION MEMBER MEMBER SINCE: 2003 ALLAN FISHER [ ASUG INSTALLATION MEMBER MEMBER SINCE: 2008 SAP HCM Canadian Development Kim LaPierre; SAP Canada
Real Experience. Real Advantage. [ 2 Learning Points HCM Canadian Development Legal Change Process 2010 Development Update Upcoming Events
Real Experience. Real Advantage. [ 3 Legal Change process Yearend Changes – December SYNCH HRSP available in the month of June. Base CLC/HRSP available in October, which acts as a prerequisite for Year end changes. November CLC for CSST changes (specific to 2010 only) 1st set of changes released by December 1 st. Changes typically include Forms, Tax engine and customizing. Incase further changes are published, Changes are released by 15 th of December. January CLC will contain consolidated Year End Changes Additional information
Real Experience. Real Advantage. [ 4 Legal Change process Midyear Changes - June Base HRSP / CLC delivered in April, which acts as the prerequisite for midyear tax changes. Mid Year Tax Changes released in June. July CLC for Canada will contain consolidated Mid year Changes.
Real Experience. Real Advantage. [ Development update HST for Ontario and British Columbia SAP analyzed customer use of HST, GST and PST in payroll processing of benefit contributions. Many customers use delivered functionality as a "model” Changes released to customers were documented “guidelines” with specific examples to SAP standard delivered constants and payroll rules Tax changes in first half of 2010 Segregation of taxes for Retiring Allowances and other items reported on the T4A in preparation for the move of Retiring allowance boxes to the T4 July 1 st Mid Year Tax Changes
Real Experience. Real Advantage. [ Development update Employment Equity update HRSDC replaced the Employment Equity Computerized Reporting System (EECRS) reporting system with Workplace Equity Information Management System (WEIMS) SAP released changes to the extract file from RPLEAK00 to conform to the new file specifications Prescribed Interest Rate SAP released a note ( ) in January 2010 with the Federal Government prescribed interest rate. As the rate did not change throughout the year, no subsequent note was delivered. Starting in 2011, SAP will deliver a quarterly note, even if the rate remains unchanged.
Real Experience. Real Advantage. [ Development update Change to Bonus Tax Calculation (Change #1) In January 2010, CRA added a note to the T4127 guide indicating that if the estimated Annual remuneration of the employee is $5,000 or less the tax is calculated as 15% of the bonus (10% for Quebec. SAP has updated the tax formula to follow this direction from CRA. The change will be delivered with the yearend base HRSP.
Real Experience. Real Advantage. [ Development update Change to Bonus Tax Calculation In the Bonus tax calculation section of the T4127 guide, there is a formula (Step 2) that is used to calculate Estimated annual earnings A = [(IYTD – FYTD – F2YTD – U1YTD) + (PR × (I – F – F2 – U1)) – F1 – HD]* + (B1 – F4) the guide also indicates that “if there is no current I, use the most recent I” Two problems exits with this CRA guidance. If there is no current “I” actually means if “I” is zero or is less than the usual amount …use most recent “I” CRA have indicated that this is not necessarily the most recent “I” but is the average or usual or typical “I”.
Real Experience. Real Advantage. [ Development update Change to Bonus Tax Calculation (change #2) If there is no current “I” actually means if “I” is zero or less than usual Currently, SAP provides functionality to configure wage types to be used for estimation of gross in case of missing regular pay for salaried employees. The WT's can be configured in table T51P1 with indicator R3. If the sum of the WT's is zero, the basic pay from IT0008 is used in estimation. As of January 1, 2011 even if the sum of R3 wage types is only a percentage (configurable) of earnings in IT0008, the IT0008 amount can be used in estimation. The constant KTHPE can be configured in T511K to achieve this. For example, if you wish to use IT0008 value for estimation when current earnings are less than 20% of IT0008 earnings, set KTHPE to 0,20.
Real Experience. Real Advantage. [ Development update Change to Bonus Tax Calculation …use most recent “I” In some cases however, even this value may not be very accurate. For example the most recent 'I' may again be zero or a very small percentage of regular earnings. To overcome the above problem, as of January 1, 2011, provision has been made to use the average year-to-date values instead of the most recent.
Real Experience. Real Advantage. [ Development update Change to Bonus Tax Calculation (#3) …use most recent “I” CRA provides the below formula for calculation of annual taxable income using the YTD bonus calculation method: A = [(IYTD - FYTD - F2YTD - U1YTD) + (PR × (I - F - F2 - U1)) - F1 - HD]* + (B - F3)** + (B1 - F4)** In the above formula, in case of missing regular pay, the values of I, F, F2 and U1 will be replaced by their respective YTD average values. To enable this, constant KAVGF in table T511K should be set to 1,00. If this new YTD average process is not used (KAVGF flag not set to 1.00) then the existing IT0008 income estimation process will be used
Real Experience. Real Advantage. [ Development update CSST To be released in November via a CLC Changing from Annual remittance to CSST based on estimated earnings to Pay Period remittance to MRQ based on actual earnings Introduction of a new Periodic Payment Rate (blended rate) for employers with multiple rates Post yearend reconciliation of amount paid by using the Periodic Payment Rate and what would have been paid if you used the actual rates. SAP will provide new T511K literals to store the Periodic Payment Rates Additional functionality in KFTAX to calculate CSST New technical wage types Changes to the TPZ-1015.r Changes to be delivered via a CLC in November 2010.
Real Experience. Real Advantage. [ Yearend Update Payroll yearend Master Note ( ) has been published This note informs you of legal changes that relate to Year End 2010 processing within Canadian Payroll. The Country Legal Changes (CLC) contain functionality that affects Year End Reporting for 2010, Year End Adjustments, Audit (Reconciliation) Reporting, and taxation changes that take effect on January 1, The yearend master note is updated as required throughout the yearend season. For additional information on Year End 2010 for Canada Payroll, consult SAP Service Marketplace at then click on the link for yearend on the left hand side.www.service.sap.com/hrcanada
Real Experience. Real Advantage. [ Yearend Update Yearend Support Requests for assistance logged through OSS with component (PY-CA-YE) SAP Canadian development team will monitor OSS and will pick up these messages directly If your OSS support is normally picked up by a third party (SMB market), please insert the following text at the beginning of your message. As this message is related to Canadian payroll yearend support, and since SAP Canada is monitoring OSS for messages using component PY-CA-YE, the processing for this message will be picked up by SAP as part of the Canadian Yearend support program
Real Experience. Real Advantage. [ Yearend Update Canadian Payroll yearend training The following information contains the current schedule for SAP payroll yearend training. As this schedule is subject to change, please refer to the SAP Education webpage for the most up to date schedule. This information can be found at: HR707 – Canadian Yearend Reporting December 13 – 14, Toronto December 16 – 17, Ottawa
Real Experience. Real Advantage. [ Development update T4A Redesign Move Retiring Allowance (box 26 and 27 of T4A) to the T4 Redesigned T4A slip New Box 48 “fees for services” on T4A
Real Experience. Real Advantage. [ Yearend Update Cancelled RL-1 and RL-2 slips MRQ has mandated that software vendors must support “Cancelled” RL slips in order to be certified. SAP has satisfied the business need in the past by producing “zero value amended” RL slips. As of payroll yearend 2010, SAP is providing the cancelled RL slip functionality which will include: The creation of a new extract file, Yearend workbench changes and A change to the slip itself Printing Annule Remainder of slip is unchanged from original
Real Experience. Real Advantage. [ Yearend Update Wage Loss Replacement programs Federal court ruling has determined that some WLRP are not subject to CPP. CRA still discussing with HRSDC CRA will be releasing a Q&A guide shortly This ruling allows for retroactive recalculation for non-pensionable earnings. While no system changes will be required from SAP, if your WLRP is deemed to be not subject to CPP, you will have to make some configuration / procedural changes to accommodate this.
Real Experience. Real Advantage. [ 19 Future Development Web ROE Convert extract file to XML Update extract file to conform to new specification CPP Changes (Bill C51) Elimination of a need for an interruption in employment to collect CPP benefits Change to the penalty for early collection of benefits Introduction of enhanced benefits if you continue to contribute beyond age 65, while continuing to work. Option to elect whether to contribute to CPP while working between the ages of 65 and 70. If you have concerns or thoughts on any issues that might arise with this update, please let me know as I am on a CPP Action Task Force with the Canadian Payroll Association, working with CRA, Service Canada and HRSDC.
Real Experience. Real Advantage. [ 20 Future Development Report on Hiring (ROH) Develop the file extract to conform to the XML specifications
Real Experience. Real Advantage. [ 21 Upcoming Events Canadian Yearend 2010 Webcast Update on legislative payroll changes, Yearend training and Upcoming Canadian HCM and Payroll development. When: November 17, 2010 at 2pm ET. Speaker: Kim LaPierre
Real Experience. Real Advantage. [ 22 Upcoming Events Canadian ASUG Chapter meetings Western Canada Chapter November 16, 2010 Where: Suncor Inc in Calgary, AB Ottawa Chapter BW/BI/BOBJ/Crystal Reporting theme November 3,2010
Real Experience. Real Advantage. [ 23 Upcoming Events The 2010 SAP World Tour is the premier event for Canada’s business leaders. This one-day forum features a timely and engaging series of presentation tracks focused on visionary ideas, innovative strategies, and customer testimonials. Montreal | Le Westin Montreal | October 21, 2010 Vancouver | Four Seasons Hotel | October 26, 2010 Toronto | Allstream Centre | October 28, 2010 REGISTER NOW:
Real Experience. Real Advantage. [ 24 Upcoming Events It's the one event where you can: Get visionary updates directly from SAP executives Hear extraordinary insights from thought leaders Learn best practices and approaches from other top-level executives, and have 1:1 meetings with other SAP customers Get an in-depth look at future SAP applications that will support your growth strategies and create a competitive advantage Gather your entire team - from project managers to senior executives - and take a holistic approach to solving key business challenges Access SAP partners and solution providers for the latest on SAP software-supporting technologies Discover industry solutions with built-in functionality supporting best practices
Real Experience. Real Advantage. [ 25 SAP’s work with CPA – Federal government relations Vice Chair of the FGRAC (Federal Government Relations Advisory Council) SME with CPA for Legislative change review CPA training material review The Role Semi-annual 2 day meeting in Ottawa with federal government Semi-annual Steering committee meeting with CRA and Service Canada Ad hoc meetings with Service Canada and CRA Liaison between SAP customers and government agencies Participation in various FGRAC subcommittees Web ROE usability ROE guide rewrite (delivered) CRA – Tax simplification Publication Readability Service Canada data requirement inventory and Reporting rationalization CPP Legislative changes Activities
Real Experience. Real Advantage. [ 26 ] Thank you for participating.
Real Experience. Real Advantage. [ Yearend Update Wage Loss Replacement programs Federal court ruling has determined that some WLRP are not subject to CPP. CRA still discussing with HRSDC CRA will be releasing a Q&A guide shortly This ruling allows for retroactive recalculation for non-pensionable earnings.