SAP Knowledge Base Article - Preview

2741042 - FAQ: Tax calculation in Payroll Canada

Symptom

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

Before submitting an incident 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.


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Environment

  • 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 

Product

SAP ERP Central Component all versions ; SAP ERP all versions ; SAP enhancement package for SAP ERP all versions ; SAP enhancement package for SAP ERP, version for SAP HANA all versions

Keywords

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

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