How to Setup CPP Adjustment Deduction Code

GOAL: To provide a wholistic overview of the best practice method of refunding additional CPP paid, and general CPP Adjustments. 

Boards can use a custom Deduction Code to create a code and apply negative earnings to level out CPP. 

Important Note: It is best practice to input this as a deduction, and not as a timesheet. However, there is no way to mass upload the amounts for this deduction, it must be done per Employee basis.

 

PAYROLL > BOARD > DEDUCTION CODE

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**Choose NEW and Create the CPP Adjustment Deduction Code** 

PAYROLL > BOARD > DEDUCTION CODE MAINTENANCE

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**Search new Deduction Code, input Start Date and End Date as NULL** 

It is also good practice to align the Start Date of the Deduction Code with the Pay Period.

Note: Algorithm Code = Standard, Rounding Method = N, and Liability Code might be different, up to the board

 

PAYROLL > GROUP DATA > PAY PERIOD CALENDAR > EMP_GROUP

Ensure the Deduction Start/End dates align with the appropriate Pay Period Start Date. A later End Date is not required because there’s no rate attached to the Deduction Code.

**Note the Start/End Dates of Pay Period for Emp Group in question**

 

PAYROLL > EMPLOYEE > NON-STATUTORY DEDUCTIONS

The Override Start/End Pay Number = Current Pay Period.

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**Input Deduction Code and Negative Earning Amount – per Employee**

IMPORTANT NOTE: The Amount is reported as an Earning. If you want to deduct, the amount needs to be a negative.

  • Negative earning = deduction override