Payroll Canada Year End 2023

[jonasben]

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

[FASEEH_UDDIN]

Hi Malou,

B16A & B17A is available in sub-application T424 in T596I.

B45 will be populated automatically when you maintain the data in IT0033 or activate the BADI/feature . For example: Maintain IT0033 for 1 employee and then process T4, you will see value in B45 that was maintianed for EE in IT0033.

Regards,

Faseeh

[ejaz1]

Hi Mohammed

 

It is added is fine, but it should not get populated with CPP amount correct ? My Box 16A is populated with the same amount that is in Box 16 ( CPP)

When you run this for your employees does the Box 16A get populated with amount for Year 2023

 

Thanks

 

 

[drbonfi]

Hello,

 

Last year, in SAP note "3269868 - PY-CA-YE: Relevé XML updates for Tax Year 2022", the XML schema (file ED-800-T(2022.1) was an attachment to the note.

This year, I could not find the attachment in the current note 3401099 and could not find it in https://www.revenuquebec.ca/ .

 

Could you please help me where to find this file ED-800-T(2023.1)?

 

Thank you so much in advance,

Diego

[megha_paul01]

Hi Faseeh,

 

I am currently unable to see Box 16A, Box 17A in sub-application T423 and T424, and have followed all the Manual Instructions as per Note.

Do we suspect some issue regarding validating XML file, since after performing all the Manual instructions and while validating XML File and schema getting below Error:-

 

XML File, Schema validation Error

 

Could you kindly guide on the same how to rectify.

My am trying to provide file path where we have locally saved the Form inside my Presentation server, am I missing something?

 

Many thanks for the valuable Inputs!

 

Regards,

Megha

[ejaz1]

I have opened an SAP incident for this issue , will update once i get the solution from them

[jonasben]

Hello Diego,

The schema is attached to the Regulatory Change announcement.

If you have access to SAP for Me, you can check it here: [LINK]

Kind regards,

Jonas

[jonasben]

Hi Megha,

Boxes 16A and 17A are not relevant for fiscal year 2023.
They will only be visible for subapplication T424.

For subapplication T424, the entries might not be there, but you can create them in SM30.

As per the error with XML: this might happen if you use WebGUI.

Please read KBA 2727702. If issue persists, I suggest raising a support case.

Regards,

Jonas

[FASEEH_UDDIN]

Hi Ejaz,

Yes, I am sure B16A & 17A is not relevant for year 2023. But you can cross check internally with your payroll team.  For me I don't see any values in  B16A or 17A for 2023 T4. So I think it is a mapping issue for you in T596I.

Regards,
Faseeh

[Malou_Navera]

Thank you Faseeh.  We finally saw the new boxes when we ran a sample T4 and did a print preview.  However, I still do not see the new boxes in T424 in T596i.  Before we applied these 4 notes, I already ran PYKT to copy tax forms from 2023 to 2024.  Could this be the reason why I don't see the new boxes in T424?

Malou

[FASEEH_UDDIN]

Hi Malou,

In t424, it doesn't get defaulted you have to add it. So you can copy create using an existing box like b16 and enter b16a and save it.

Hope this helps.

Regards

Faseeh

[FASEEH_UDDIN]

Hi Xavier,

 

To my earlier response, b45 is not required to be maintained in t596i.

B45 will be populated automatically when you maintain the data in IT0033 or activate the BADI/feature . For example: Maintain IT0033 for 1 employee and then process T4, you will see value in B45 that was maintianed for EE in IT0033.

Regards

Faseeh

[Malou_Navera]

Hi Faseeh,

Are these manual steps to add the 3 new boxes in T596i T424 captured in any note?  If not,  so I just add the 3 boxes and assign these wage types:  /316 to 16A, /317 to 17A.  What about Box 45 - what should it contain?

Thanks.

Malou

[FASEEH_UDDIN]

The steps are not captured in any note. Please add it manually for B16a & 17a.

For B45 you don't have to maintain it in T596I. SAP has delivered multiple options, either maintain IT0033 with dental record or Badi or feature 07DEN. As stated in my previous replies, Maintain IT0033 for 1 employee and then process T4, you will see value in B45 that was maintained for EE in IT0033.

Hope this helps.

Regards,

Faseeh

[FASEEH_UDDIN]

Thats right, please add it manually and for B45 refer to my previous comments

[Malou_Navera]

Thank you for the clarification.  So just to confirm, I have to add in T424 these entries:  /316 to 16A and  /317 to 17A?

[FASEEH_UDDIN]

That's right. Thanks

[dilippatchamatla]

hi Jonas,

Can you please confirm if you are releasing any Canada specific notes before Dec 19th other than the notes you released in main note 3373115  ?

[jonasben]

Hi Venkata,

Unfortunately I cannot confirm that.

But all new notes related to Year End will be listed in main note 3373115  .

 

[ejaz1]

Hi

 

SAP released a Pilot Note to address this isssue - SAP Note 3413096 - YE23: Form T4 printing incorrect information

 

The issue is now resolved

 

Thanks

Ejaz

 

[jaganmohan456]

Hi There,

Thank you for the information.

A quick question on Box 45, Let's say we are not maintaining data in IT 33 for all the EEs. Rather we would like to go with Feature 07DEN update or BADI option.

For Ex. If we default all the Salaried EEs with Option 2 in the feature and without maintaining IT 33, will it populate automatically in Box 45 ?

Please confirm.

[FASEEH_UDDIN]

Hi Jaganmohan,

 

Yes, it will show 2 in B45 automatically.

 

Regards

Faseeh

[altruismconsulting]

At my 2 clients, we are using Feature 07DEN. They had a question about reporting on who was getting assigned what as they had some concern about doing amendments solely for an inaccurate dental benefit code.

I suggest running a test CRA Mag Media and then importing the XML into Excel. Then you can easily validate the assignment.

[Renato_Rocha]

Hi guys,

I've been working with SAP on this pilot note 0003413096 - YE23: Form T4 printing incorrect information. The only point is missing is the decimal separator for a few boxes that are not aligned behind the | Bar. SAP will work on this today.

Keep you posted!

Renato Rocha.

[dharitree_ravat2]

Hello,

 

We have implemented all T4 related notes. I do see new fields in form HRPAYCA_T4_2023 and table T799BSFT does show correct form for 1/1/2023-12/31/9999. When I run T4 for 2023, I don't see new boxes and the footnote says T4(18) instead of T4(23). I also added B16A and B17A for T423 manually in table T596G. Note sure what's the issue?

Thank you,

Dharitree Ravat

[dharitree_ravat2]

Issue is resolved. YENFF option had to activated.

[jonasben]

Hi Dharitree,

Thank you for updating the outcome.

 

This is a common issue. You must also ensure you have constant YENFF set up with YES in view V_T5F99K2.
This will enable system to look for PDF form instead of SAP Script form.

 

This is described in KBA

2911945 - YE19: T4/RL printing as SAP Script instead of PDF forms 

 

[dharitree_ravat2]

Thank you Jonas. That's what I did and it started picking up correct form.

[ChandraV]

jonasmben the Maximum annual employee and employer contribution (CPP/QPP second contribution) threshold is CAD 188.00, not CAD 184 (per the National Payroll institute publication). The ceiling should be CAD 73200. Could you confirm if a correction note will be issued?

[ChandraV]

I dug into this further. Looks like the original note 3395958 had the right amount for CS (CAD188); I'm guessing a subsequent note may have reverted this. Still trying to find the later note that reversed this. Stay tuned...

[MeghaTufchi]

Hi Jonas,

Box 16A and 17A now seems to appear on PDF form, along with Box45.

Regarding values coming up in Box16A, it has been solved with the Pilot Note- 3413096.

However, we are now facing an error prompt while generating XML for T4/T4A.

However, it displays success message that XML file validation is completed, no errors found.

When we try to open generated file it shows below error:-

Error Prompt:-

 

Could you kindly advise?

 

Thanks,

Megha

 

[MeghaTufchi]

Hi All,

Anyone facing issues in validating XML file and schema.

T4 and T4A are working as expected, but getting an error prompt while generating XML for T4/T4A.

Thanks,

Megha

[jonasben]

Hello Megha,

I saw your attachment from a few days ago and I see that you are using the form layout as schema.

The file "SFPF_HRPAYCA_T4_2023.XML" is the sip layout. This is not the schema.

 

The schema is in the link mentioned in the Note  3393981:

To get the most recent XML Schemas for tax year 2023, reported in 2024, please access Filing Information Returns Electronically (T4/T5 and other types of returns) - How to file.

In the above link, click Get ready to file > Download the CRA schema.
It will download a ZIP file, which content you will extract to a folder.

In the SAP XML generator program, you will select file "layout-topologie.xsd".

[adewale_ajayi]

Hi Jonas,

Happy New Year. Do you mind sharing sample of your feature 07DEN? We plan on using the feature to default the value and we are using mainly codes 1 (Not eligible) & 3 (Payee, spouse and dep. Children) for most of our EEs and I was wondering the best way to use the date field decision for determining the code say when an EE loses their coverage at the later part of the year or is the assumption that once an EE has coverage initially they are assumed to be eligible for coverage for the year.

Thanks
Joshua

[jonasben]

Hello Joshua,

Happy New Year!

 

I do not have a feature set up for sharing. I suggest you wait for other users to share here.

 

Regarding box 45 on T4 slip, as per CRA, it must be informed if there was coverage on December 31st:

"For calendar year 2023 and after, it is mandatory to indicate whether the employee or any of their family members were eligible, on December 31 of that year, to access any dental care insurance, or coverage of dental services of any kind, that you offered."

 

Regards,

Jonas

[adewale_ajayi]

Hi Jonas,

Thanks for the quick response. Much appreciated

Hope other users can share here snippet of their feature 07DEN logic.

Regards,
Joshua

[former_member499909]

After testing the logic for the Dental Benefits. The order of Dental Benefits determination is Infotype 33, BAdi, and then feature 07DEN.  Infotype 33 is read as of December 31st, and so is the data processed by the feature.  Only in the BAdi, could you fully manipulate the date used for reading of the results.  However, it would be more important to understand the Service Canada/CRA business requirement for the applicable date.

SAP comment from the code in include RPCYERKN Form: FILL_DENTAL_BENEFITS

    "Only if we've the infotype in the correct subtype and with value we will use it.
    "The priority is infotype 0033, if we don't have it or this information
    "we consider the BAdI, and if the BAdI doesn't return anything we then
    "use as last resort the feature

         D PERSG
1       D PERSK
1 FR     &07DEN=3,
1 PR     &07DEN=3,
1 **       &07DEN=1,
2       D PERSK
2 FR     &07DEN=3,
2 PR     &07DEN=3,
2 **       &07DEN=1,
*            &07DEN=1,

[adewale_ajayi]

Hi Al

Thanks for the feedback. I see for your feature you are using PERSK (Employee Subgroup) to determine the return value, we are still in requirement gathering and would likely use this as well or the BSTAT (Benefit Second Program Grouping).

I just have one question regarding your statement that the data processed by the feature is read as of December 31st. Did you define this date in the feature logic or the BAdi?

Also, for the IT0033 was this to capture your exceptions?

Thanks
Joshua

[former_member499909]

The data provided to the Badi and the feature is gathered from Infotype 0000, 0001, 0033, 0171 all as of December 31st prior to executing the BAdi or Feature.

  LOOP AT p0000 INTO ls_action WHERE begda <= gen_run-endda AND
                                     endda >= gen_run-endda.
  ENDLOOP.

  LOOP AT p0001 INTO ls_org_assignment WHERE begda <= gen_run-endda AND
                                             endda >= gen_run-endda.
  ENDLOOP.

  LOOP AT p0033 INTO ls_statistics WHERE subty = '1' AND
                                         begda <= gen_run-endda AND
                                         endda >= gen_run-endda.
  ENDLOOP.

  LOOP AT p0171 INTO ls_gen_ben_information WHERE begda <= gen_run-endda AND
                                                  endda >= gen_run-endda.
  ENDLOOP.

[adewale_ajayi]

Thanks, Al

[ChandraV]

We looked at the Feature and in particular the date field in the decision; however, the date field in the decision isnt working the way we expected it to work. For e.g. if we want to make a decision based on the employment status, say as of 12/31/2023, it didnt work.  Also, there were few more conditions from the plan eligibility standpoint that were not possible to capture it via the feature. To fully implement all the requirements, it will have to be the BAdi; because of lack of time to develop these, we decided to use the Infotype 33 directly. We built an upload for Infotype 33 to capture the eligible codes for our associates. From our standpoint, this is the fastest approach.

Thanks
Chandra

[adewale_ajayi]

Hi Chandra, Thanks for the feedback, I was just testing out the DATUM (date field) and it was failing and as you indicated to fully implement the requirements would need the BAdi so right now also developing a script to do a mass load on IT033 in case we do not have enough time to implement the BAdi.

[BREVAN]

I cannot find the 2023 CRA mag media XML schema.  Can you point me in the right direction?

xmlschm1-YY-1

 

Thanks for your patience!

[BREVAN]

Never mind.... I found it in a previous post.  Sorry to bother.

[Renato_Rocha]

Hi,

you can find it on the following CRA website:

https://www.canada.ca/en/revenue-agency/services/e-services/filing-information-returns-electronicall...

On the section:

• Download the CRA schem
  
  
  you will have the file

  
  

  
  
  • For 2024: Download the xmlschm1-24-1 file
    (version 1-24-1, last updated December 21, 2023).
  
  

  
  
   

Please let us know if this help!

BR,

Renato.

[BREVAN]

Many thanks!

Can we see Box 45 reported in the XML file?  I'm trying to confirm.

We are having issues with updating our T4 for 2023.  This is the Basis team response I receive -

"The issue with uploading FORMS.zip / FORM.zip OSS note, without ADS, the Adobe forms transaction where I upload and edit forms, throw me an error"

We have not had this issue in previous years.  Can you provide guidance on this?

Rosemary

[Renato_Rocha]

Hi Rosemary,

yes, in my test I saw the new "tag" for box 45 correctly reported; <empr_dntl_ben_rpt_cd>

for your issue I did not have this in my system.

BR,

RR

[ClaudiaMayer]

Hello Rosemary,

Please report a case so we can take a look in your system and scenario.

Regards,
Claudia

[BREVAN]

I do not see tag "empr_dntl_ben_rpt_cd" in my XML file.

Is this related to the fact that we do not have the correct form (T4/23) uploaded in our system?

I do not want to waste your time if that is our issue.... as per the Basis team response in my last message.

You are my YE angel.

Rosemary

 

[Renato_Rocha]

Hi again,

SAP delivered several OSS notes related to YE for Canada since Sept 04 2023.

Please check the OSS note 3373115 - Main note for Canadian year-end 2023 and make sure you have all related notes applied in your system, based on the HRSP you have implemented.

I remember that SAP delivered change for T4 2023 et XML under the note 3393981.

Probably this note is missing in your system.

ps.: it is really important to follow the Main note for YE and apply all changes that SAP delivered (if they are affecting your system).

BR,

Renato.

[BREVAN]

Many thanks for your patience with us.

I will relay the message to the Basis team.

Rosemary