Payroll Accounting

Question: Discuss about thePayroll Accounting. Answer: Memo Date: 11/17/2016 To: Mary Arnstein, Payroll Manager From: Re: CPP reporting requirement on T4 slips The Canada Pension Plan Regulations requires that employers should deduct CPP contribution from the remuneration of employees. The remuneration is referred to the amount that is received by the employee from the employer[1]. The RC4157 states that employer is required to fill the T4 information slip if the remuneration paid is more than $500 and the incomes paid includes income from employment; allowances and benefits that are taxable and other incomes. The T4 information slip should include the information relating to salary, wages and all other remuneration of the employees. Further, it should also contain information relating to taxable allowance, taxable benefit and other deductions. The general instruction for completing the T4 slip is to clearly complete the slip in an alphabetical order and dollar sign is not required to be included[2]. There are numerous boxes in the T4 slip and the basic informations like name, address and years are included in the slip. In Box 10, the province of employment is indicated in abbreviation and if the employee works in more than one province then separate T4 slip should be filled. The employment income should be included in the Box 14 and this should include total income received before any deductions. In the BOX 16 and 17, the amount that has been deducted from the employees for CPP and QPP should be reported. It is to be noted that if the employees do not contribute then the boxes should be left blank and the employers contribution should not be reported. If the employee turns 18 year old during the reporting period then the employer should start deducting CPP contribution from the remuneration. On the other hand, if the employees turn 70 years the calculation of CPP contribution should be discontinued. The CT Form 30 is the Election to Stop Contribution to Canada pension Plan this form should be filled by the employees between the age of 65 years and 70 years. This form can also be filled if the contribution to CPP was stopped in the previous year and the employees plan to restart the contribution. The Part A, b and C of the CT Form 30 should be filled if the employee plans to stop CPP contribution. In this case, the deficiency in CPP is due to non-contribution by employees turning 18 years old. Reference Annex, H. "Canada Pension Plan."National Population Projections: Review of Methodology for Projecting Mortality(2001): 71. Gruber, Jonathan, and David A. Wise, eds.Social security programs and retirement around the world. University of Chicago Press, 2009. https://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/clcltng/cpp-rpc/menu-eng.html[3]