Canadian CPP and QPP create claims situation
Hi SAP expert ;
Is there any way that we can stop having CPP and QPP calculating for an employee when they have no earning ? Some of our Withdrawn EE still eligible for Taxable benefit and these are CPP and QPP taxable so when running payroll these taxes are calculated and then claims created for the EE.
Thanks
If the benefits are subject to CPP (or QPP), then the CPP deduction should be calculated. The employer should pay it's share and make sure that the employee's share is also paid, either by giving a "cash advance" to the employee and then asking the employee to provide a check to the appropriate amount at the end of the year, or by giving enough earnings to the employee to cover her/his CPP contribution plus any additional contribution generated by these new earnings.
You could try to go around the problem and delete these claims, but as an employer, you'd probably still be liable towards Revenu Canada (or Revenu Québec).
P.S. : Note that automatic advances can be configured through V_T51P1 with code 00 to link the deduction WT to the Automatic Net Advance WT, with a change to the PCR using operation R51P1.
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