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Additional CPP and QPP contributions - Sage Business Cloud Payroll (Canada)
Additional CPP and QPP contributions - Sage Business Cloud Payroll (Canada)

This article explains the additional CPP and QPP contributions that apply from January 2024 (Canada only).

Written by Wayne Pickard
Updated over a week ago

What are additional CPP and QPP contributions?

From January 2024, there will be additional contributions to the Canada Pension Plan (CPP) and the Quebec Pension Plan (QPP) for high earners.

If an employee's annual income exceeds the Year’s Maximum Pensionable Earnings (YMPE), which is the initial earnings ceiling, they will begin making these second-level contributions, referred to as CPP2 or QPP2 contributions.

Employers will be required to match the CPP2 or QPP2 contributions.

This only applies to employees who earn more than $67,000 annually.

For more information and details of the contribution rates, maximums and exemptions, access the CRA website (opens in a new tab).

Example additional CPP calculation

If an employee earned $100,000 in 2024:

· The first earnings ceiling is $67,700

· The second earnings ceiling is $72,439

($67,700-$3,500) "0.0595 = $3.819.90

($72,439-$67,700)*0.04 = $189.56

The employee's contributions equals $4,009.46 for 2024.

Processing additional CPP and QPP in Sage Payroll

Sage Payroll has been updated with the new legislation to handle the additional contributions.

Where applicable, the values will appear on the T4 and pay statements.

The Payroll detailed report will show a combined value for both:

· CPP with additional CPP contribution.

· QPP with additional QPP contribution.

Next steps

For help verifying your CPP/QPP and EI figures prior to finalizing payroll for the year, read our Pensionable and Insurable Earnings Review article.

For help finding the reports that contain CPP and QPP values, read our Reports in Sage Business Cloud Payroll article.

For help sending tax documents to qualifying employees by the end of February each year, read our Send T4 and RL-1 tax documents to Sage HR from Sage Business Cloud Payroll (Canada) article.

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