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 PR Deductions/Liabilities form:
  1. In the Dedn / Liab Code field, enter a number to uniquely identify the code.
  2. In the Description field, enter a description for the code.
  3. In the Type section of the form, select the Deduction radio button.
  4. Set the Calculation Category drop-down to F-Federal.
  5. In the Federal Type drop-down, select 2-CPP.
  6. In the GL Account field, enter the GL account to credit for this deduction code.
  7. In the Method drop-down, select R-Routine.
  8. In the Routine field, enter CPP or press F4 to locate and select the routine.
  9. In the Rate / Amount #1 field, enter the current rate.
  10. In the Amount field (Limit section), select the Subject Amount option and enter the annual contribution amount.
  11. 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.
Note: Enter the yearly CPP exempt amount in the MISC Amt #1 field in the PR Routines form. For more information, see Deduction and Liability Based Routines: Canada.