It’s crazy to think that we’re already a few days into 2024. With that, there are a couple of important changes to Canadian Payroll that you should already be aware of and have been (or are planning for) in both your Payroll Systems and Reporting Systems. These two major changes are the introduction of CPP2 and the implementation of the Canadian Dental Care Plan (CDCP).
CPP2
Back in the Fall of 2023, the Canadian Revenue Agency announced the next phase of the CPP (Canadian Pension Plan) overhaul, which was announced and initiated back in 2019.
2024 is the first year of the new “second tier” of CPP or YAMPE (Year’s Additional Maximum Pensionable Earnings) calculation.
Before 2024, CPP was based on the YMPE (Year’s Maximum Pensionable Earnings) less the Basic Personal Exemption. Now in 2024, they have introduced CPP2 as a second tier, which is applied against the earnings between YMPE and YAMPA.
Using the final 2024 released information from Revenue Canada on November 01, 2023, the CPP YMPE is set at $68,500 with a contribution deduction of 5.95% and the CPP2 YAMPE is set at $73,200 with a contribution of deduction 4.00%.
Remember to double the contribution percentages if you are self-employed.
For example, let’s say in 2024, Fred makes $120,000 – which is higher than both the YMPE (CPP) and YAMPE (CPP2). This chart highlights the total 2024 CPP.
Income Range | CPP @ 5.95% | CPP2 @ 4.00% | Fred’s Total CPP | Employer’s Total |
$0 – $68,500 | $3,867 | $0 | $3,867 | $3,867 |
$68,502 – $73,200 | $0 | $188 | $188 | $188 |
$73,201 – $120,000 | $0 | $0 | $0 | $0 |
Total 2024 CPP | $3,867 | $188 | $4,055 | $4,055 |
You need to make sure that your payroll system has this covered for your first 2024 pay run.
Canadian Dental Care Plan (CDCP)
The second change affecting Canada Payroll systems is the new Canadian Dental Care Plan (CDCP).
Starting with the 2023 T4 / T4A forms, you need to report on CDCP for Employees.
For T4’s, it is Box 45 (Employer-Offered Dental Benefits) and for T4A’s it is Box 015 (Payer-Offered Dental Benefits).
The codes to be used are:
- Code 1: No access to any dental care insurance, or coverage of dental services of any kind.
- Code 2: Access to any dental care insurance, or coverage of dental services of any kind for only the payee.
- Code 3: Access to any dental care insurance, or coverage of dental services of any kind for payee, spouse, and dependents.
- Code 4: Access to any dental care insurance, or coverage of dental services of any kind for only the payee and their spouse.
- Code 5: Access to any dental care insurance, or coverage of dental services of any kind for only the payee and dependents.
Dynamics GP Systems
Now, the great news for Dynamics GP, is that “Santa” Terry Heley and her elves have been working very hard at getting this developed and tested for all our Dynamics GP users.
RELEASED – KB4602612-ENU.msp (December 19, 2023)
December 19, 2023, was the released date for the Dynamics GP code drop, by “Santa” Terry.
I know, not a lot of time, but we need to thank the Canadian and Quebec governments for their speedy verifications and certifications… but that is another story. There are several table and window changes with this new feature.
Table Changes
If you have any custom reports for Canadian Payroll, you will need to review, correct, and test these custom reports to include these new fields.
Below is the list of table changes for the Canadian Payroll release.
Physical Table | Table Name | Field Name |
CPY10100 | CDN Payroll Employee Master | PEmpOfferDental |
CPY10100 | CDN Payroll Employee Master | PPQReleve1BoxB2 |
CPY10103 | CDN Payroll Employee T4 File | PCPP2 |
CPY30150 | CDN Payroll Calculation WORK File | PCPP2 |
CPY30150 | CDN Payroll Calculation WORK File | PPQReleve1BoxB2 |
CPY30151 | CDN Payroll Employee T4 WORK File | PCPP2 |
CPY30250 | CDN Payroll Calculation MSTR File | PCPP2 |
CPY30250 | CDN Payroll Calculation MSTR File | PPQReleve1BoxB2 |
CPY40101 | CDN Payroll T4 Master | PEmpOfferDental |
CPY40101 | CDN Payroll T4 Master | PCPP2 |
CPY40102 | CDN Payroll T4A Master | PEmpOfferDental |
CPY40105 | CDN Payroll Employee R1 | PPQReleve1BoxB2 |
CPY40111 | CDN Payroll T4 Summary Master | PCPP2 |
CPY50100 | CDN Payroll Employee Master LY | PEmpOfferDental |
CPY50100 | CDN Payroll Employee Master LY | PPQReleve1BoxB2 |
CPY50103 | CDN Payroll Employee T4 File LY | PCPP2 |
CPY50250 | CDN Payroll Calculation MSTR File LY | PCPP2 |
CPY50250 | CDN Payroll Calculation MSTR File LY | PPQReleve1BoxB2 |
CPY70105 | CDN Payroll Employee R1 LY | PPQReleve1BoxB2 |
Window Changes
There are several window changes to facilitate these new requirements.
Employee Master -> TD1
Accessed from Cards > Payroll – Canada > Employee (TD1 Values) has the Employer Offered Dental Benefits drop-down field added.
Employer Offered Dental Benefits Mapping (PEmpOfferDental)
- Code 1 = No dental insurance or coverage of any kind
- Code 2 = Payee
- Code 3 = Payee, spouse and dependent children
- Code 4 = Payee and their spouse
- Code 5 = Payee and their dependent children
Employee Master -> T4
Accessed from Cards > Payroll – Canada > Employee (T4) has the CPP2 field added.
Payroll T4 Edit – Canada
Accessed from Tools > Routines > Payroll – Canada > T4 Edit has both the CPP2 field (Box 16A) and the Employer Offered Dental Benefits fields (Box 45) added.
Payroll T4A Edit – Canada
Accessed from Tools > Routines > Payroll – Canada > T4A Routines >> T4A Edit has the Employer Offered Dental Benefits field (Box 15) added.
2023 T4 – Requirements
As I mentioned above, the CRA is requiring the CDCP (Canadian Dental Care Plan) box to be filled in for the 2023 T4’s and T4A’s.
To make this happen, you can follow these simple steps after the upgrades have been completed, but before the T4’s / T4A’s are generated:
- Update all the CDCP (Canadian Dental Care Plan) on the Canadian Payroll Employee Master
- Produce the 2023 T4’s and T4A’s
If your CDCP is the same for all employees, then use this Code to update the Canadian Payroll Employee Master:
UPDATE [CPY10100] SET [PEmpOfferDental] = <X> <X> = the Code Number of the Dental Benefits received from the company.
Final Thoughts
The process of doing the Year End Update is VERY IMPORTANT to make all these changes work correctly. Please follow the recommended procedures from Terry Heley:
- Finish 2023 Payrolls
- Back ups
- Install the 2023 year-end update
- Make sure new Benefit field updates for Dental Insurance
- Back ups
- Close the 2023 year-end and move files to history
- Make sure 2024 Basic Personal amounts are updated
- Run 2024 Payroll
Other tidbits included:
- DO NOT use the NOV DVD image if you use/install Canadian Payroll. Or US Year-end MSP
- ROE has been adjusted to allow for ‘M’ as a starting character
- T4 and T4A will not print with lines or on blank paper
- New CPP fields are not included in the XML for the 2023 for T4 or RL-1 – (Confirmed not required)
For more details, please review all documentation from both Microsoft and Canadian Revenue Agency.
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