Set up a CPP Deduction: Canada
Create a deduction code when setting up Canadian Pension Plan withholding.
These steps are to set up a CPP deduction code. If you need a more general description of creating deduction and liability codes, see Creating Deduction and Liability Codes.
- In the Dedn / Liab Code field, enter a number to uniquely identify the code.
- In the Description field, enter a description for the code.
- In the Type section of the form, select the Deduction radio button.
- Set the Calculation Category drop-down to F-Federal.
- In the Federal Type drop-down, select 2-CPP.
- In the GL Account field, enter the GL account to credit for this deduction code.
- In the Method drop-down, select R-Routine.
- In the Routine field, enter CPP or press F4 to locate and select the routine.
- In the Rate / Amount #1 field, enter the current rate.
- In the Amount field (Limit section), select the Subject Amount option and enter the annual contribution amount.
- Set up automatic AP updates for the code, making sure to select the Separate AP Transaction per Employee check box. For more information, see Setting Automatic Accounts Payable Updates for D/L Codes.