2741042 - FAQ: Tax calculation in Payroll Canada

This article describes some topics that are a common source of questions in the context of Canadian Payroll.

Before submitting an case to SAP, review the questions listed in this article and check if the explanation or solution to your problem is already described in one of them.

SAP certifies that the tax calculation in the system follows the specifications from the CRA as available in publication T4127. For further details, refer to https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/t4127-payroll-deductions-formulas-computer-programs.html

Topics:

1. Tax calculated is too high

2. Differences in comparison with PDOC calculation

3. Bonus calculation with less or no regular earnings

4. Income tax calculated when moving full bonus amount to RRSP

5. Gross-up calculation is too high

6. Different calculation methods used for income tax vs. CPP and EI.

• Human Capital Management (HCM)
• SAP R/3
• SAP ERP Core Component
• SAP ERP
• SAP enhancement package for SAP ERP
• SAP enhancement package for SAP ERP, version for SAP HANA 

RPCALCK0, RPCALCK0_CE, KATAX, KAVGF, KTHPE , KBA , PY-CA , Canada , PY-CA-CE , Concurrent Employment - Payroll Canada , Problem