Canadian Oracle Payroll Tax Engine Calculation Guide
Canadian Oracle Payroll Tax Engine Calculation Guide
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described in this document without risking significant destabilization of the code.
Overview 7
How This Document Is Organized 7
Income Tax 7
Federal/Provincial Payroll tax 7
Rates/Amounts for Federal/Provincial Payroll Tax 7
Legislative Requirements/Business Rules for Federal/Provincial
Payroll Tax 21
Calculation details for Federal/Provincial Payroll Tax 22
Federal Tax Formula Factors 22
Mapping of Fusion Tax Card to CRA factors 26
Federal/Provincial Regular taxation formula 27
Federal/Provincial Regular Bonus taxation formula 55
Federal/Provincial Year-to-date Bonus taxation formula 59
Federal/Provincial Commission taxation – Annual Taxable Income
formula 64
Quebec Provincial Income Tax 67
Rates/Amounts for Quebec Payroll Tax 67
Other Quebec rates and amounts 68
Quebec Lump sum withholding rates and amounts 69
Legislative Requirements/Business Rules for Quebec Payroll Tax 70
Mapping of Fusion Tax Card to Revenue Quebec factors 70
Quebec Tax Formula Factors 71
Quebec Regular taxation formula 74
Quebec Non-periodic taxation formula 77
Quebec Cumulative-averaging (commission) taxation formula 81
Northwest Territories / Nunavut Territory Payroll tax 84
Overview of NT/NU Territory Payroll Tax 84
Rates/Amounts for NT/NU Territory Payroll Tax 84
Legislative Requirements/Business Rules for NT/NU Territory
Payroll Tax 84
Special Notes for NT/NU Territory Payroll Tax 85
Calculation details for NT/NU Territory Payroll Tax 85
Retirement 86
Canada Pension Plan (CPP) 86
Overview of CPP 86
Rates/Amounts for CPP 86
Legislative Requirements/Business Rules 88
Special Notes 89
Calculation Details: CPP Self Adjust method 89
Calculation Details: CPP Self Adjust at Maximum method 97
Quebec Pension Plan (QPP) 103
3 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0
Copyright © 2023, Oracle and/or its affiliates / Public
Overview of QPP 103
Rates/Amounts for QPP 103
Legislative Requirements/Business Rules 105
Special Notes 106
Calculation Details: QPP Self Adjust method 106
Calculation Details: QPP Self Adjust at Maximum method 112
Unemployment 118
Employment Insurance (EI) 118
Overview of EI 118
Rates/Amounts for EI 119
EI Legislative Requirements/Business Rules 120
EI Special Notes 121
Federal Employment Insurance (EI) – Self Adjust formula 121
Federal Employment Insurance (EI) – Self Adjust at Maximum
formula 123
Quebec Employment Insurance (EI) – Self Adjust formula 125
Quebec Employment Insurance (EI) – Self Adjust at Maximum
formula 127
Quebec: Parental Insurance Plan (QPIP) 129
Overview of QPIP 129
Rates/Amounts for QPIP 129
QPIP Legislative Requirements/Business Rules 130
QPIP – Self Adjust formula 131
QPIP – Self Adjust at Maximum formula 132
Glossary 134
The report is generated manually after the payroll process completes. It is a separate process called the Canadian
Tax Calculation Report. The report can be generated for a payroll or a Quickpay process, that has a minimum
logging parameter of 'F'
Note:
Blue highlighted text is to be omitted when Period to Date Aggregation switch is not “on”.
Yellow highlighted text is related to the implementation of the enhanced CPP Phase 2 and enhanced QPP
Phase 2, which becomes effective on January 1, 2024.
A detailed, step by step list of calculations required for that tax formula.
Income Tax
This table contains the federal tax rate and constant values relative to annual taxable income ranges. These
values are used in the calculation of federal taxes
From To
0 53,359 15% 0
53,359.01 106,717 20.5% 2,935
106,717.01 165,430 26% 8,804
165,430.01 235,675 29% 13,767
235,675.01 and over 33% 23,194
From To
0 50,197 15% 0
50,197.01 100,392 20.5% 2,761
100,392.01 155,625 26% 8,282
155,625.01 221,708 29% 12,951
221,708.01 and over 33% 21,819
From To
0 49,020 15% 0
49,020.01 98,040 20.5% 2,696
98,040.01 151,978 26% 8,088
151,978.01 216,511 29% 12,648
216,511.01 and over 33% 21,308
This table contains the federal tax rate related to payments subject to Lump Sum taxation These values are used
in the calculation of federal taxes. The rates in the Federal column represent the tax rate for the combined federal
and provincial tax. The rates in the Quebec column represent the tax rate for the federal tax only.
From To
0 5,000.00 10% 5% 25%
5,000.01 15,000.00 20% 10% 25%
From To
15,000.01 and over 30% 15% 25%
From To
0 5,000.00 10% 5% 25%
5,000.01 15,000.00 20% 10% 25%
15,000.01 and over 30% 15% 25%
From To
0 5,000.00 10% 5% 25%
5,000.01 15,000.00 20% 10% 25%
15,000.01 and over 30% 15% 25%
This table contains the provincial tax rate and constant values relative to annual taxable income ranges These
values are used in the calculation of provincial/territorial taxes.
From To
AB 0.00 142,292.00 0.1000 0
142,292.01 170,751.00 0.1200 2,846
170,751.01 227,668.00 0.1300 4,553
227,668.01 341,502.00 0.1400 6,830
341,502.01 and over 0.1500 10,245
BC 0.00 45,654.00 0.0506 0
45,654.01 91,310.00 0.0770 1,205
91,310.01 104,835.00 0.1050 3,762
104,835.01 127,299.00 0.1229 5,638
127,299.01 172,602.00 0.1470 8,706
9 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0
Copyright © 2023, Oracle and/or its affiliates / Public
Province/Terr. Annual Taxable Income (A) Rate (V)l Constant (KP)
From To
172,602.01 240,716.00 0.1680 12,331
240,716.01 and over 0.2050 21,238
MB 0.00 36,842.00 0.1080 0
36,842.01 79,625.00 0.1275 718
79,625.01 and over 0.1740 4,421
NB 0.00 47,715.00 0.0940 0
47,715.01 95,431.00 0.1400 2,195
95,431.01 176,756.00 0.1600 4,104
176,756.01 and over 0.1950 10,290
NL 0.00 41,457.00 0.0870 0
41,457.01 82,913.00 0.1450 2,405
82,913.01 148,027.00 0.1580 3,482
148,027.01 207,239.00 0.1780 6,443
207,239.01 264,750.00 0.1980 10,588
264,750.01 529,500.00 0.2080 13,235
529,500.01 1,059,000.00 0.2130 15,883
1,059,000.01 and over 0.2180 21,178
NS 0.00 29,590.00 0.0879 0
29,590.01 59,180.00 0.1495 1,823
59,180.01 93,000.00 0.1667 2,841
93,000.01 150,000.00 0.1750 3,613
150,000.01 and over 0.2100 8,863
NT 0.00 48,326.00 0.0590 0
48,326.01 96,655.00 0.0860 1,305
96,655.01 157,139.00 0.1220 4,784
157,139.01 and over 0.1405 7,691
NU 0.00 50,877.00 0.0400 0
50,877.01 101,754.00 0.0700 1,526
101,754.01 165,429.00 0.0900 3,561
165,429.01 and over 0.1150 7,697
ON 0.00 49,231.00 0.0505 0
49,231.01 98,463.00 0.0915 2,018
98,463.01 150,000.00 0.1116 3,998
150,000.01 220,000.00 0.1216 5,498
220,000.01 and over 0.1316 7,698
PE 0.00 31,984.00 0.0980 0
From To
31,984.01 63,969.00 0.1380 1,279
63,969.01 and over 0.1670 3,134
SK 0.00 49,720.00 0.1050 0
49,720.01 142,058.00 0.1250 994
142,058.01 and over 0.1450 3,836
YT 0.00 53,359.00 0.0640 0
53,359.01 106,717.00 0.0900 1,387
106,717.01 165,430.00 0.1090 3,415
165,430.01 500,000.00 0.1280 6,558
500,000.01 and over 0.1500 17,558
From To
AB 0.00 131,220.00 0.1000 0
131,220.01 157,464.00 0.1200 2,624
157,464.01 209,952.00 0.1300 4,199
209,952.01 314,928.00 0.1400 6,299
314,928.01 and over 0.1500 9,448
0.00 43,070.00 0.0506 0
BC 43,070.01 86,141.00 0.0770 1,137
86,141.01 98,901.00 0.1050 3,549
98,901.01 120,094.00 0.1229 5,319
120,094.01 162,832.00 0.1470 8,214
162,832.01 227,091.00 0.1680 11,633
227,091.01 and over 0.2050 20,035
MB 0.00 34,431.00 0.1080 0
34,431.01 74,416.00 0.1275 671
74,416.01 and over 0.1740 4,132
NB 0.00 44,887.00 0.0940 0
44,887.01 89,775.00 0.1482 2,433
89,775.01 145,955.00 0.1652 3,959
145,955.01 166,280.00 0.1784 5,886
166,280.01 and-over 0.2030 9,976
NL 0.00 39,147.00 0.0870 0
From To
39,147.01 78,294.00 0.1450 2,271
78,294.01 139,780.00 0.1580 3,288
139,780.01 195,693.00 0.1780 6,084
195,693.01 250,000.00 0.1980 9,998
250,000.01 500,000.00 0.2080 12,498
500,000.01 1,000,000.00 0.2130 14,998
1,000,000.01 and over 0.2180 19,998
NS 0.00 29,590.00 0.0879 0
29,590.01 59,180.00 0.1495 1,823
59,180.01 93,000.00 0.1667 2,841
93,000.01 150,000.00 0.1750 3,613
150,000.01 and over 0.2100 8,863
NT 0.00 45,462.00 0.0590 0
45,462.01 90,927.00 0.0860 1,227
90,927.01 147,826.00 0.1220 4,501
147,826.01 and over 0.1405 7,236
NU 0.00 47,862.00 0.0400 0
47,862.01 95,724.00 0.0700 1,436
95,724.01 155,625.00 0.0900 3,350
155,625.01 and over 0.1150 7,241
ON 0.00 46,226.00 0.0505 0
46,226.01 92,454.00 0.0915 1,895
92,454.01 150,000.00 0.1116 3,754
150,000.01 220,000.00 0.1216 5,254
220,000.01 and over 0.1316 7,454
PE 0.00 31,984.00 0.0980 0
31,984.01 63,969.00 0.1380 1,279
63,969.01 and over 0.1670 3,134
SK 0.00 46,773.00 0.1050 0
46,773.01 133,638.00 0.1250 935
133,638.01 and over 0.1450 3,608
YT 0.00 50,197.00 0.0640 0
50,197.01 100,392.00 0.0900 1,305
100,392.01 155,625.00 0.1090 3,213
155,625.01 500,000.00 0.1280 6,169
500,000.01 and over 0.1500 17,169
From To
AB 0.00 131,220.00 0.1000 0
131,220.01 157,464.00 0.1200 2,624
157,464.01 209,952.00 0.1300 4,199
209,952.01 314,928.00 0.1400 6,299
314,928.01 and over 0.1500 9,448
0.00 42,184.00 0.0506 0
BC 42,184.01 84,369.00 0.0770 1,114
84,369.01 96,866.00 0.1050 3,476
96,866.01 117,623.00 0.1229 5,210
117,623.01 159,483.00 0.1470 8,045
159,483.01 222,420.00 0.1680 11,394
222,420.01 and over 0.2050 19,623
MB 0.00 33,723.00 0.1080 0
33,723.01 72,885.00 0.1275 658
72,885.01 and over 0.1740 4,047
NB 0.00 43,835.00 0.0968 0
43,835.01 87,671.00 0.1482 2,253
87,671.01 142,534.00 0.1652 3,744
142,534.01 162,383.00 0.1784 5,625
162,383.01 And-over 0.2030 9,620
NL 0.00 38,081.00 0.0870 0
38,081.01 76,161.00 0.1450 2,209
76,161.01 135,973.00 0.1580 3,199
135,973.01 190,363.00 0.1730 5,238
190,363.01 and over 0.1830 7,142
NS 0.00 29,590.00 0.0879 0
29,590.01 59,180.00 0.1495 1,823
59,180.01 93,000.00 0.1667 2,841
93,000.01 150,000.00 0.1750 3,613
150,000.01 and over 0.2100 8,863
NT 0.00 44,396.00 0.0590 0
44,396.01 88,796.00 0.0860 1,199
88,796.01 144,362.00 0.1220 4,395
144,362.01 and over 0.1405 7,066
From To
NU 0.00 46,740.00 0.0400 0
46,740.01 93,480.00 0.0700 1,402
93,480.01 151,978.00 0.0900 3,272
151,978.01 and over 0.1150 7,071
ON 0.00 45,142.00 0.0505 0
45,142.01 90,287.00 0.0915 1,851
90,287.01 150,000.00 0.1116 3,666
150,000.01 220,000.00 0.1216 5,166
220,000.01 and over 0.1316 7,366
PE 0.00 31,984.00 0.0980 0
31,984.01 63,969.00 0.1380 1,279
63,969.01 and over 0.1670 3,134
SK 0.00 45,677.00 0.1050 0
45,677.01 130,506.00 0.1250 914
130,506.01 and over 0.1450 3,524
YT 0.00 49,020.00 0.0640 0
49,020.01 98,040.00 0.0900 1,275
98,040.01 151,978.00 0.1090 3,137
151,978.01 500,000.00 0.1280 6,025
500,000.01 and over 0.1500 17,025
NU 17,925 0.063
ON 11,865 0.065 506
PE 12,000
QC 0.165
SK 17,661 0.063 0.175 875
YT BPAYT 0.063 1,368
Outside 0.480
Canada
ZZ or US
AB 19,369 -
BC 11,302 0.021
MB 10,145 0.021 0.150 1,800
NB 12,623 0.024 0.200 2,000
NL 9,803 0.028
NS BPANS - 0.200 2,000
NT 15,609 0.024
NU 16,862 0.024
ON 11,141 0.024 475
PE 11,250
QC 0.165
SK 16,615 0.024 0.175 875
YT BPAYT 0.024 1,287
Outside 0.480
Canada
ZZ or US
ZZ or US
From To
ON 0.00 5,315.00 0.00 0.00 0.00 0.00
5,315.01 6,802.00 0.20 5,315.00 0.00 0.00
6,802.01 and over 0.20 5,315.00 0.36 6,802.00
PE 0.00 12,500.00 0.00 0.00 0.00 0.00
12,500.01 and over 0.10 12,500.00 0.00 0.00
From To
ON 0.00 4,991.00 0.00 0.00 0.00 0.00
4,991.01 6,387.00 0.20 4,991.00 0.00 0.00
PE 6,387.01 and over 0.20 4,991.00 0.36 6,387.00
0.00 12,500.00 0.00 0.00 0.00 0.00
12,500.01 and over 0.10 12,500.00 0.00 0.00
From To
ON 0.00 4,874.00 0.00 0.00 0.00 0.00
4,874.01 6,237.00 0.20 4,874.00 0.00 0.00
PE 6,237.01 and over 0.20 4,874.00 0.36 6,237.00
0.00 12,500.00 0.00 0.00 0.00 0.00
12,500.01 and over 0.10 12,500.00 0.00 0.00
From To
BC 0.00 23,179.00 0.000 521.00
23,179.01 37,817.00 0.0356 521.00
ON 37,817.01 and over 0.000 0.00
0.00 and over 2.000 274.00
From To
BC 0.00 21,867.00 0.000 491.00
21,867.01 35,659.00 0.0356 491.00
From To
35,659.01 and over 0.000 0.00
ON 0.00 and over 2.000 257.00
From To
BC 0.00 21,418.00 0.000 481.00
21,418.01 34,929.00 0.0356 481.00
34,929.01 and over 0.000 0.00
ON 0.00 and over 2.000 251.00
Factor Meaning
B1 Gross bonuses, retroactive pay increases, vacation pay when vacation is not taken,
accumulated overtime payments or other non-periodic payments year-to-date (before
the pay period)
BPAF Federal Basic Personal Amount
BPANS Basic Personal Amount for Nova Scotia
BPAYT Basic Personal Amount for Yukon
C Canada (or Quebec) Pension Plan contributions for the pay period.
C2 Canada (or Quebec) Pension Plan second additional contributions
CEA Canada Employment Amount, a non refundable tax credit used in the calculation for K4
and K4P
D Employee’s YTD (before the pay period) Canada Pension Plan contributions with the
employer (cannot be more than the annual maximum)
DQ Employee’s YTD (before the pay period) Quebec Pension Plan contributions with the
employer (cannot be more than the annual maximum)
D1 Employee’s year-to-date employment insurance premium with the employer
E Total commission expenses deductions reported on Form TD1X. This value is stored in
Fusion on the Federal Tax Card in the Commission Expenses field.
EI Employment Insurance premiums for the pay period
F Payroll deductions for the pay period for employee contributions to a registered pension
plan (RPP) for current and past services, a registered retirement savings plan (RRSP), to a
pooled registered pension plan (PRPP), or a retirement compensation arrangement
(RCA). For tax deduction purposes, employers can deduct amounts contributed to an
RPP, RRSP, PRPP, or RCA by or on behalf of an employee to determine the employee’s
taxable income
F1 Annual deductions such as child care expenses and support payments, requested by an
employee or pensioner and authorized by a tax services office or tax centre. This value is
stored in Fusion on the Federal Tax Card in the Annual Deductions field.
F2 Alimony or maintenance payments required by a legal document dated before May 1,
1997, to be payroll-deducted authorized by a tax services office or tax centre
F3 Employee registered pension plan or registered retirement savings plan contributions
deducted from the current non-periodic payment. You can also use this field or design
another to apply other tax-deductible amounts to the non-periodic payment, such as
union dues
F4 Employee registered pension plan or registered retirement savings plan contributions
deducted from the year-to-date non-periodic payments. You can also use this field or
design another to apply other tax-deductible amounts to the non-periodic payment,
such as union dues
F5 Deductions for Canada Pension Plan additional contributions for the pay period
F5A Deductions for Canada (or Quebec) Pension Plan additional contributions for the pay
period deducted from the periodic income, if a non-periodic payment exists
F5B Deductions for Canada (or Quebec) Pension Plan additional contributions for the pay
period deducted from the nonperiodic payment
F5Q Deductions for Quebec Pension Plan additional contributions for the pay period
HD Annual deduction for living in a prescribed zone, as shown on Form TD1. This value is
stored in Fusion on the Federal Tax Card in the Prescribed Zone Deduction field.
G Gross commission amount including gross salary at the time of payment, plus any
taxable benefits for commission-remunerated employees who have filled out Form
TD1X. When an employee has not filed Form TD1X, tax is calculated the regular way
I Gross remuneration for the pay period. This includes overtime earned and paid in the
same pay period, pension income, qualified pension income, and taxable benefits, but
does not include bonuses, retroactive pay increases, or other non-periodic payments,
and taxable benefits.
In the Regular Bonus formula, if the gross remuneration in the current pay period is zero,
use the gross remuneration from the previous pay period. If the previous pay period had
zero gross remuneration, use the employee’s salary basis
I1 Total remuneration for the year reported on Form TD1X. This include commission
payments, salary (where applicable), non-periodic payments, and taxable benefits. This
value is stored in Fusion on the Federal Tax Card in the Commission Remuneration field
K Federal constant. The constant is the tax overcharged when applying he 20.5%, 26%,
29% and 33% rates to the annual taxable income A
K1 Federal non-refundable personal tax credit (the lowest federal tax rate is used to
calculate this credit)
K1P Provincial or territorial non-refundable personal tax credit (the lowest tax rate is used to
calculate this credit)
K2 Federal Canada Pension Plan contributions and employment insurance premiums tax
credits for the year (the lowest federal tax rate is used to calculate this credit). Note: If an
employee has already contributed the maximum CPP and EI, for the year with the
employer, use the maximum CPP and EI deduction to determine the credit for the rest of
the year If, during the pay period in which the employee reaches the maximum, the CPP
and EI, when annualized, is less than the annual maximum, use the maximum annual
deduction(s) in that pay period
K2P Provincial or territorial Canada Pension Plan contributions and employment insurance
premiums tax credits for the year (the lowest provincial or territorial tax rate is used to
calculate this credit). If an employee reaches the maximum CPP or EI for the year with an
employer, the instructions in the note for the K2 factor also apply to the K2P factor. For
employees paid by commission, use the federal K2 formula for commissions and replace
the lowest federal rate in the K2 formula with the lowest provincial or territorial tax rate
K2Q Quebec Pension Plan contributions, employment insurance premiums, and Quebec
Parental Insurance Plan premiums federal tax credits for the year (the lowest federal tax
rate is used to calculate this credit)
K3 Other federal non-refundable tax credits (such as medical expenses and charitable
donations) authorized by a tax services office or tax centre. This value is stored in Fusion
on the Federal Tax Card in the Other Tax Credits field.
K3P Other provincial or territorial non-refundable tax credits (such as medical expenses and
charitable donations) authorized by a tax services office or tax centre
K4 Factor calculated using the Canada employment amount credit (the lowest federal tax
rate is used to calculate this credit)
K4P Factor calculated using the provincial or territorial Canada employment amount credit
(only applies to Yukon)
KP Provincial or Territorial constant
L Additional tax deductions requested by the employee or pensioner as shown on Form
TD1
If a pay run includes both regular and supplemental, the Additional Tax will be applied
only once.
24 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0
Copyright © 2023, Oracle and/or its affiliates / Public
Factor Meaning
LCF Federal labour-sponsored funds tax credit. This value is stored in Fusion on the Federal
Tax Card in the Labour Fund Contributions field.
LCP Provincial or territorial labour-sponsored funds tax credit (only applies to New
Brunswick, Newfoundland and Labrador, Nova Scotia, Saskatchewan, British Columbia,
and Yukon)
M Accumulated federal and provincial or territorial tax deductions (if any) to the end of the
last pay period
M1 Year-to-date tax deducted on all payments included in B year-to-date
N The number of days since the last payment in the current year. The minimum basic
exemption amount of $67.30 is included in the formula in line with CPP legislation
NI Net income for the year from the employer
P The number of pay periods in the year
PI Pensionable Income for the pay period, or the gross income plus any taxable benefits for
the pay period, including bonuses and retroactive pay increases where applicable.
PM Pensionable Months (used in the proration of maximum contribution)
PR Periods remaining including current period
Q2 Quebec Pension Plan second additional contributions
R Federal tax rate that applies to the annual taxable income A
S Provincial tax reduction (only applies to Ontario and British Columbia)
S1 Annualizing factor
S2 Basic amount used in the calculation of Factor S (only applies to Ontario and British
Columbia)
T Estimated federal and provincial or territorial tax deductions for the pay period
T1 Annual federal tax deduction
T2 Annual provincial or territorial tax deduction (except Quebec)
T3 Annual basic federal tax
T4 Annual basic provincial or territorial tax
TB Tax deductions, i.e., bonuses or retroactive pay increases, payable now
TC “Total claim amount” reported on federal Form TD1. If Form TD1 is not filed by the
employee or pensioner, calculate TC using BPAF formula, and for non-resident
individuals, TC is $0. If the claim code is E, T = $0. If the province is Ontario, even if the
claim code is E, the Ontario Health Premium is payable on annual income over $20,000
TCP “Total claim amount” reported on the provincial or territorial Form TD1. If this form is not
filed, TCP is the provincial or territorial basic personal amount, refer to Table 8.2. For
Nova Scotia and Yukon, use BPANS and BPAYT formulas respectively.
U1 Union dues for the pay period paid to a trade union, an association of public servants, or
dues required under the law of a province to a parity or advisory committee or similar
body
V Provincial or Territorial tax rate for the year (does not apply to Quebec, outside Canada,
or in Canada beyond the limits of any province or territory)
V1 Provincial or territorial surtax calculated on the basic provincial or territorial tax (only
applies to Prince Edward Island and Ontario)
V2 Additional tax calculated on taxable income (only applies to the Ontario Health Premium)
W The greater of year-to-date (before the pay period) pensionable earnings (PIYTD or
GYTD) and employee’s Year’s Maximum Pensionable Earnings (YMPE). This is used to
calculate Factor C2
Y Additional provincial tax reduction amount based on the number of eligible dependents
used in the calculation of Factor S (only applies to Ontario)
YAMPE Year’s Additional Maximum Pensionable Earnings
YMPE Year’s Maximum Pensionable Earnings
YTD Year-to-date, not including current pay period
F5A = 0.00
ELSE
ENDIF
ELSE
F5A = 0.00
ELSE
ENDIF
Check for Commissioned If Federal Tax Card-Commission Remuneration > A (Annual
employee 0.00 Taxable
• Call “Calculate A” step from the Income) for
Commission taxation – Annual Taxable commissione
Income formula d employee
• skip to step 3 of this formula
ENDIF
2b Calculate full period gross I = PTD I + current I I
remuneration (I)
This
calculation is
used for PTD
tax
calculation
for regular
earnings.
2c Calculate full period payroll F = PTD F + current F F
deductions (F)
OR
ENDIF
ENDIF
calc 2 with
• ((PTD CPP withheld + current CPP current pay
Withheld) period
• * (1- ((PTD CPP Supp Withheld + regular and
current CPP Supp withheld) / (PTD YTD bonus
CPP Withheld + current CPP
Withheld))) K2 is based
• * P) * CPP base rate / CPP on CPP from
contribution rate Reg earnings
only in this
ELSEIF Regular Bonus Pay period
PLUS CPP
from current
Tax calc 1 bonus
Tax calc 2
And
Tax calc 1
Tax calc 2
And
And
ELSE
ENDIF
ELSEIF
(Regular tax calc OR Regular
bonus calc) AND
(Current EI withheld = 0.00 AND
PTD EI withheld = 0.00) then EI
portion of k2 = 0.00
Tax calc 1
Tax calc 2
Tax calc 1
Tax calc 2
And
• Federal EI Rate * I1
ELSE
EI portion of K2 = 0.00
ENDIF
ELSEIF
And
Tax calc 1
Tax calc 2
Tax calc 1
Tax calc 2
ELSE
QPP portion of K2Q = 0.00
ENDIF
ELSEIF
(Regular tax calc OR Regular
bonus calc) AND
(Current EI withheld = 0.00 AND
PTD EI withheld = 0.00) then EI
portion of K2Q = 0.00
Tax calc 1
Tax calc 2
And
Tax calc 1
Tax calc 2
ELSE
EI portion of K2Q = 0.00
ENDIF
Else
EI portion of K2Q = 0.00 (POE <> QC)
Endif
ELSEIF
(Regular tax calc OR Regular
bonus calc) AND
(Current QPIP withheld = 0.00
AND PTD QPIP withheld = 0.00)
then QPIP portion of K2Q = 0.00
Tax calc 1
Tax calc 2
And
Tax calc 1
Tax calc 2
And
• QPIP Rate * I1
ELSE
QPIP portion of K2Q = 0.00
ENDIF
Else
QPIP portion of K2Q = 0.00 (POE <> QC)
Endif
*
If the result is negative, enter $0
5 Calculate (T4): annual basic provincial or territorial tax
5a Exclude provincial calculation for IF (POE = QC or US or ZZ)
Quebec, US, Outside Canada T2 = 0.00
Go to step 6a
ENDIF
5b Calculate K1P K1P
If POE = ‘NS’
IF Regional tax card total claim amount <>
Nova Scotia Basic Personal Amount
K1P = regional tax card total claim
amount * lowest provincial tax
rate (V)
ELSE
Find appropriate row in “Basic
Personal Amount thresholds and
OR
ELSEIF POE = YT
OR
ENDIF
ENDIF
ELSE
K1P = Regional tax card total claim
amount * lowest tax rate (V) for the POE)
ENDIF
5c Calculate CPP portion of K2P IF (YTD QPP contribution * CPP rate / QPP rate) + CPP portion
YTD CPP contribution + current CPP contribution of K2P
>= Annual maximum CPP contribution * PM / 12
CPP portion of K2P = lowest
provincial/territorial tax rate (V) * Annual
maximum CPP contribution* CPP base
rate / CPP contribution rate * PM / 12
•
ELSEIF
(Regular tax calc OR Regular bonus calc
OR Commission tax calc) AND
(Current CPP withheld = 0.00 AND PTD
CPP withheld = 0.00) then CPP portion of
K2P = 0.00
And
Tax calc 1
And
Tax calc 2
And
Tax calc 1
Tax calc 2
And
ELSE
ENDIF
ENDIF
ELSEIF
(Regular tax calc OR Regular bonus calc)
AND
(Current EI withheld = 0.00 AND PTD EI
withheld = 0.00) then EI portion of K2P =
0.00
Tax calc 1
And
Tax calc 2
Tax calc 1
Tax calc 2
ELSE
EI portion of K2P = 0.00
ENDIF
6b Calculate V1 If POE = ON V1
Find appropriate row in V1 table based on
T4
Elseif POE = PE
Find appropriate row in V1 table based on
T4
Else
V1 = 0.00
Endif
6c Calculate V2 If POE = ON V2
Find appropriate row in V2 table based on
A
V2 is the lesser of
V2 Constant 1
AND
V2 Constant 2 + (V2 rate * (A – V2
table-low threshold - 0.01))
Else
V2 = 0.00
Endif
6d Calculate S If POE = BC S
Find appropriate row in S table based on A
S is the lesser of
T4 and
S2 constant – ((A – S table low
threshold - 0.01) * S rate)
Elseif POE = ON
Find appropriate row in S table based on A
Note: The
LCP = the lesser of: formula
LCP Amount assumes that
And for POE
LCP Rate * the amount deducted or where LCP =
withheld for the acquisition of approved 0.00, the
shares “Other
Federal and
Provincial
Rates and
Amounts”
table will
have 0.000
and 0.00
entered for
LCP rate and
LCP amount
6f Calculate T2 (Annual provincial T2 = T4 + V1 + V2 – S – LCP T2
or territorial deduction)
If the result is negative, T2 = $0.00
7 Calculate (T): estimated federal and provincial or territorial tax deduction for the pay period
Calculate annual tax for bonus IF Regular Bonus Calculation or YTD Bonus Tax on
taxation formulas Calculation annual
Tax on annual taxable income = T1 + T2 income =
Return to bonus tax calculation
ENDIF
Calculate tax for commissioned If Federal Tax Card-Commission Remuneration > T
employee 0.00
IF G > 0
T = ((T1 + T2) / (I1 / G)) + L
ELSE
T = 0.00
ENDIF
ENDIF
If PTD Aggregation Switch is turned off, the following balances will not be used in the tax calculation steps (except
when the current payment contains only non-periodic earnings and there is a previous regular pay in the current
pay period):
• F5APTD (federal)
• PTD F (federal)
• PTD I (federal)
• PTD U1 (federal)
F5A = 0.00
ELSE
ENDIF
ELSE
F5A = 0.00
ELSE
ENDIF
ENDIF
Calculate F5B IF POE <> QC F5B
F5B = 0.00
ELSE
ENDIF
ELSE
F5B = 0.00
ELSE
ENDIF
ENDIF
If Federal Tax Card/Federal tax If Federal Tax card/Federal tax rate > 0.00 T
rate is populated, apply that rate T = ((current non-periodic – F5B – current
to the current bonus RRSP on non-periodic) * Federal Tax
Card/Federal tax rate) + L
Exit bonus tax calculation
ENDIF
3a Calculate full period gross I = PTD I + current I I
remuneration (I)
This
calculation is
used for PTD
tax
calculation
3b Calculate full period payroll F = PTD F + current F F
deductions (F)
Note: Factors with the suffix ‘YTD’ means Year to Date (before this pay period).
If PTD Aggregation Switch is turned off, the following balances will not be used in the tax calculation steps (except
when the current payment contains only non-periodic earnings and there is a previous regular pay in the current
pay period):
• F2PTD (federal)
• F5APTD (federal)
• PTD F (federal)
59 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0
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• PTD I (federal)
• PTD U1 (federal)
F5A = 0.00
ELSE
ENDIF
ELSE
F5A = 0.00
ELSE
ENDIF
ENDIF
Calculate F5B IF POE <> QC F5B
F5B = 0.00
ELSE
ENDIF
ELSE
F5B = 0.00
ELSE
ENDIF
ENDIF
If Federal Tax Card/Federal tax If Federal Tax card/Federal tax rate > 0.00 T
rate is populated, apply that rate T = ((current non-periodic – F5B – current
to the current bonus RRSP on non-periodic) * Federal Tax
Card/Federal tax rate) + L
Exit bonus tax calculation
ENDIF
3a Subtract YTD pay period IYTD - IPTD Adjusted
deductions from YTD gross. – FYTD + FPTD YTD gross
– F2YTD + F2PTD income
PTD amounts are not included in - F5AYTD + F5APTD
the calculation of Adjusted YTD – U1YTD + U1PTD
gross income but are included in
the next step so that they are
annualized.
3b Subtract pay period deductions I + IPTD Adjusted
from current gross – F – FPTD current gross
- F2 – F2PTD income
- F5A – F5APTD
- U1 – U1PTD
4e Subtract annual deductions from Remaining Annual Gross Income -HD-F1 Adjusted
Remaining Annual Gross Income Remaining
If Adjusted Remaining Annual Gross Income is Annual Gross
negative Income
Adjusted Remaining Annual Gross Income =$0
4f Calculate YTD bonus less YTD YTD net bonus = YTD non-periodic - YTD RRSP on YTD net
RRSP, RPP, etc non-periodic – YTD F5B bonus
Basic Personal Low Income rate DEI amount DEI rate Labour fund
amount contribution
limit
Basic Personal Low Income rate DEI amount DEI rate Labour fund
amount contribution
limit
This table contains the Quebec tax rates related to payments subject to Lump Sum taxation. These values are
used in the calculation of Quebec taxes.
From To
0 5,000.00 14%
5,000.01 and over 19%
From To
0 5,000.00 15%
5,000.01 and over 20%
From To
0 5,000.00 15%
5,000.01 and over 20%
From To
0 5,000.00 15%
5,000.01 and over 20%
Factor Meaning
F5A Deductions for Canada (or Quebec) Pension Plan additional contributions for the pay
period deducted from the periodic income, if a non-periodic payment exists
F5B Deductions for Canada (or Quebec) Pension Plan additional contributions for the pay
period deducted from the nonperiodic payment
F5Q Deductions for Quebec Pension Plan additional contributions for the pay period
HD Annual deduction for living in a prescribed zone, as shown on Form TD1. This value is
stored in Fusion on the Federal Tax Card in the Prescribed Zone Deduction field.
G Gross commission amount including gross salary at the time of payment, plus any
taxable benefits for commission-remunerated employees who have filled out Form
TD1X. When an employee has not filed Form TD1X, tax is calculated the regular way
I Gross remuneration for the pay period. This includes overtime earned and paid in the
same pay period, pension income, qualified pension income, and taxable benefits, but
does not include bonuses, retroactive pay increases, or other non-periodic payments,
and taxable benefits.
In the Regular Bonus formula, if the gross remuneration in the current pay period is zero,
use the gross remuneration from the previous pay period. If the previous pay period had
zero gross remuneration, use the employee’s salary basis
I1 Total remuneration for the year reported on Form TD1X. This include commission
payments, salary (where applicable), non-periodic payments, and taxable benefits. This
value is stored in Fusion on the Federal Tax Card in the Commission Remuneration field
K Federal constant. The constant is the tax overcharged when applying he 20.5%, 26%,
29% and 33% rates to the annual taxable income A
K1 Federal non-refundable personal tax credit (the lowest federal tax rate is used to
calculate this credit)
K1P Provincial or territorial non-refundable personal tax credit (the lowest tax rate is used to
calculate this credit)
K2 Federal Canada Pension Plan contributions and employment insurance premiums tax
credits for the year (the lowest federal tax rate is used to calculate this credit). Note: If an
employee has already contributed the maximum CPP and EI, for the year with the
employer, use the maximum CPP and EI deduction to determine the credit for the rest of
the year If, during the pay period in which the employee reaches the maximum, the CPP
and EI, when annualized, is less than the annual maximum, use the maximum annual
deduction(s) in that pay period
K2P Provincial or territorial Canada Pension Plan contributions and employment insurance
premiums tax credits for the year (the lowest provincial or territorial tax rate is used to
calculate this credit). If an employee reaches the maximum CPP or EI for the year with an
employer, the instructions in the note for the K2 factor also apply to the K2P factor. For
employees paid by commission, use the federal K2 formula for commissions and replace
the lowest federal rate in the K2 formula with the lowest provincial or territorial tax rate
K2Q Quebec Pension Plan contributions, employment insurance premiums, and Quebec
Parental Insurance Plan premiums federal tax credits for the year (the lowest federal tax
rate is used to calculate this credit)
K3 Other federal non-refundable tax credits (such as medical expenses and charitable
donations) authorized by a tax services office or tax centre. This value is stored in Fusion
on the Federal Tax Card in the Other Tax Credits field.
K3P Other provincial or territorial non-refundable tax credits (such as medical expenses and
charitable donations) authorized by a tax services office or tax centre
K4 Factor calculated using the Canada employment amount credit (the lowest federal tax
rate is used to calculate this credit)
K4P Factor calculated using the provincial or territorial Canada employment amount credit
(only applies to Yukon)
KP Provincial or Territorial constant
L Additional tax deductions requested by the employee or pensioner as shown on Form
TD1
If a pay run includes both regular and supplemental, the Additional Tax will be applied
only once.
LCF Federal labour-sponsored funds tax credit. This value is stored in Fusion on the Federal
Tax Card in the Labour Fund Contributions field.
LCP Provincial or territorial labour-sponsored funds tax credit (only applies to New
Brunswick, Newfoundland and Labrador, Nova Scotia, Saskatchewan, British Columbia,
and Yukon)
M Accumulated federal and provincial or territorial tax deductions (if any) to the end of the
last pay period
M1 Year-to-date tax deducted on all payments included in B year-to-date
N The number of days since the last payment in the current year. The minimum basic
exemption amount of $67.30 is included in the formula in line with CPP legislation
NI Net income for the year from the employer
P The number of pay periods in the year
PI Pensionable Income for the pay period, or the gross income plus any taxable benefits for
the pay period, including bonuses and retroactive pay increases where applicable.
PM Pensionable Months (used in the proration of maximum contribution)
PR Periods remaining including current period
Q2 Quebec Pension Plan second additional contributions
R Federal tax rate that applies to the annual taxable income A
S Provincial tax reduction (only applies to Ontario and British Columbia)
A Income tax to be withheld for the pay period
A5 Employee’s YTD QPP contributions withheld, before the current pay period
B Gratuities, retroactive pay or similar lump-sum payments
C Employee’s QPP contribution withheld for the pay period
CS Additional employee QPP contributions for the pay period.
CSA Additional employee QPP contributions for the pay period deducted from periodic
income, if a non-periodic payments exists
CSB Additional employee QPP contributions for the pay period deducted from non-periodic
income
E Value of personal tax credits shown on form TP-1015.3-V. This value is stored in Fusion
on the Quebec Regional Tax card in the Total Claim Amount field
F Pretax deductions
G Gross remuneration subject to source deductions of income tax for the pay period. Do
not include gratuities, retroactive pay or similar lump-sum payments
1 Check Eligibility
1a Check for Quebec payroll tax IF
eligibility and for Indian Status • Provincial Tax Exempt flag is checked on
the Quebec Regional Tax Calculation card
OR
• Indian Exempt status is checked on any
active Assignment
THEN
A = 0.00
Exit regular tax calculation
ENDIF
2 Calculate Annual Income
2a Calculate Quebec tax if Quebec IF Regional Tax Card/Provincial tax amount > 0 A=
Tax Card/ Provincial tax amount A = Regional Tax Card/Provincial tax
field is populated amount + L Income tax
Exit regular tax calculation for the pay
period
Check for Commissioned If Regional Tax Card-Commission Remuneration >
employee 0.00
• Exit this formula and use the Quebec
Commission tax formula instead.
ENDIF
Calculate CSA IF current QPP withheld = 0.00 AND current QPP2 CSA
withheld = 0.00
CSA = 0.00
ELSE
ENDIF
2b Calculate QC tax if Regional Tax IF Regional Tax Card/Provincial tax rate > 0 A=
Card/Provincial tax rate field is A = ((current G – current F – CSA) *
greater than zero Regional Tax Card/Provincial tax rate) + L
This
calculation is
used for PTD
tax
calculation
for regular
earnings
2e Calculate full period payroll F = PTD F + current F F=
deductions (F)
e.g. RPP,
RRSP, etc.
2f Calculate H: Deduction for If earnings type is T4/RL1 or T4A/RL1 H=
Employment Income (DEI) H = Lesser of: (Deduction
((current G + PTD G) * DEI rate) for
OR employment
(DEI Amount / P) income)
ELSE
H = 0.00
ENDIF
2g Calculate J J = Regional Tax Card/Designated Remote Area J=
Deduction Remote Area
and support
payments
2h Calculate J1 J1 = Regional Tax Card/Annual Deduction J1 =
Annual
Annual deductions authorized by deductions
RQ on form TP-1016-V
2i Calculate I (Annual Taxable I = P * (G – F – H – CSA – PTD CSA) – J – J1 I=
Income)
IF the result is negative
I = 0.00
ENDIF
3 Calculate Income Tax for the Year
3a Determine QC Income Tax Rate Find appropriate row in “Rates/Amounts for T=
(T) and Constant (K) Quebec Payroll Tax” table based on I K=
3d Calculate Labour Fund Labour Fund Contribution credit = Q * 15% Labour Fund
Contribution credit Contribution
credit =
3e Calculate Y: QC Income tax for Y = (T * I) – K – K1 – Total Claim credit – Labour Y=
the Year Fund Contribution credit
1 Check Eligibility
1a Check for Quebec payroll tax IF A=
eligibility and for Indian Status • Provincial Tax Exempt flag is checked on
the Quebec Regional Tax Calculation card
OR
• Indian Exempt status is checked on any
active Assignment
THEN
A = 0.00
Exit regular tax calculation
ENDIF
77 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0
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Quebec Non Periodic taxation formula
CSA = 0.00
ELSE
ELSE
ENDIF
79 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0
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Quebec Non Periodic taxation formula
3 Calculate Income Tax for the Year (excluding current non periodic)
3a Determine QC Income Tax Rate Find appropriate row in “Rates/Amounts for T=
(T) and Constant (K) Quebec Payroll Tax” table based on (I + YTD non K=
Periodic – YTD CSB non periodic – YTD CSB
commission)
4b Calculate Y2: QC Income tax for Y2 = (T * (I + YTD non periodic – YTD CSB non Y2 =
the Year including current non periodic + current non periodic – CSB non periodic
periodic payment – YTD CSB commission)) – K – K1 – Total Claim
credit – Labour Fund Contribution credit
Note: This logic uses Cumulative averaging tax Method 1 from the TP-1015.f-v guide
1 Check Eligibility
1a Check for Quebec payroll tax Eligibility check is not required since it has been
eligibility and for Indian Status done in the QC Regular tax formula prior to calling
this Commissioned formula
CSA = 0.00
ELSE
ELSE
ENDIF
Calculate QC tax if Regional Tax IF Regional Tax Card/Provincial tax rate > 0 A=
Card/Provincial tax rate field is A = ((current G – current F – CSA + current
greater than zero non-periodic – CSB non periodic – CSB
Commission – current RRSP on non-
periodic) * Regional Tax Card/Provincial
tax rate) + L
ENDIF
2g Calculate B B = Current non-periodic + YTD non-periodic – B=
CSB non periodic – YTD CSB non periodic –
current commission – YTD commission – (CSB
commission + YTD CSB commission)
The Territory Payroll Tax applies to all employees who work, perform duties, or provide services in the territory,
regardless of the province or territory of residence of the employee or employer or the employee's age.
1 Check for Territory payroll If Province of Employment = ‘NT’ or ‘NU’ Employee is eligible
tax eligibility and employee does not have ‘Payroll
Tax Exempt’ flag checked on the related Note: Fusion functionality for
NT or NU Tax Calculation card Territory payroll tax is limited
to these employees.
Legislative eligibility also
includes employees whose
POE is not NT or NU but earn
income in these territories.
Fusion does not currently
support that legislative
requirement.
2024 rates/amounts
CPP QPP
*The 2023 rates in this table are for illustrative purposes only, to support the eCPP phase 2 formulas below. The
rates will be updated with 2024 values when they are available
2023 rates/amounts
CPP QPP
2022 rates/amounts
CPP QPP
2021 rates/amounts
CPP QPP
*QPP is documented in another section but is included in this table as this information is required for CPP
calculations when an employee transfers from Quebec during the tax year.
Eligibility Check for CPP 1. Starts the month following See calculation step 1.
eligibility the employee turning 18
2. Ends the month following an
employee turning 70
3. Ends if employee files a
CPT30 to elect to stop CPP
deductions
4. Restarts if an employee files a
CPT30 form to revoke a
previous election
5. Province of Employment is
not Quebec.
Exempt from CPP if the ‘CPP Exempt’
flag is checked on the Tax Federal
portion of the tax card.
Proration Prorate CPP annual If an employee is eligible for less than See calculation step 2.
maximum deduction the full year, the annual maximum
and YMPE deduction and the yearly maximum
pensionable earnings are prorated.
Application Provinces CPP is applicable for all provinces
except Quebec. Quebec’s equivalent
is QPP.
Annual maximums Formulas must respect the annual
maximum YMPE and maximum
annual deduction.
These maximums will be prorated in
the case of employees who are
eligible for less than the full year.
Recognize past QPP The formula must recognize YTD
pensionable earnings QPP pensionable earnings and YTD
/ QPP deductions QPP deductions for employees who
were subject to QPP earlier in the
year
PTD CPP Exemption No legislative equivalent. In cases where the pay
period exemption is not
fully “used” in a pay run,
any remaining pay
period exemption will
be used in subsequent
pay runs for that
employee in that pay
period.
No CPP exemption If a non periodic payment is made
when there is no and no regular remuneration is paid
in the same pay run, no CPP
Special Notes
This section is specific to the calculation of CPP. While it takes into account the scenario whereby an employee
had contributed to QPP earlier in the year, the actual calculation of QPP is covered in another section of this
document.
This section does not deal with the determination of which earnings or benefits are considered pensionable.
The Self Adjust Method calculates CPP contributions until the employee’s YTD pensionable wages reach the
prorated Yearly Maximum Pensionable Earnings. Each pay period, the YTD CPP contribution is compared to the
amount of CPP that should have been withheld, based on the YTD pensionable earnings. If necessary, an
1 Check for CPP eligibility If Ee has no pensionable income in -current CPP pensionable
Canada outside of Quebec. earnings = 0
OR
ELSE
7.5 Determine CPP exemption If Federal Tax Card-Commission Prorated CPP exemption.
for commissioned Remuneration > 0.00
employee • N = the lesser of:
o Current payment date –
Jan 1 of current year
(minimum 1)
o Current payment date –
most recent payment
date
o Current payment date –
employee’s date of hire
• Prorated CPP exemption = the
greater of:
o CRA prescribed CPP
annual basic
exemption * N / 365
and
o 67.30 – PTD CPP
exemption
• If Prorated CPP exemption +
YTD CPP exemption + YTD QPP
exemption > CRA prescribed
CPP annual basic exemption
o Prorated CPP
exemption = CRA
prescribed CPP annual
basic exemption – YTD
CPP exemption – YTD
QPP exemption
• ENDIF
• Go to step 11
ENDIF
8 Determine CPP full pay CRA prescribed CPP annual basic Full Pay period exemption
period exemption exemption / number of pay periods in
the year.
9 Determine current pay If there are no current regular CPP Current pay period
period exemption and the pensionable earnings, the current pay exemption.
Period to Date (PTD) pay period exemption = 0.
period exemption PTD pay period exemption
IF Current CPP Pensionable earnings >
(full pay period exemption – PTD pay
period exemption)
• Current pay period exemption =
full pay period exemption – PTD
pay period exemption
• PTD pay period exemption =
full pay period exemption
ELSE
• Current pay period exemption =
Current CPP Pensionable
earnings
• PTD pay period exemption =
PTD pay period exemption +
Current CPP Pensionable
Earnings.
ENDIF
10 CPP exemption total (full pay period exemption * number of Prorated CPP exemption
through current pay CPP pensionable pay periods to-date in
period current year prior to the current period1)
+ PTD pay period exemption.
1
-exclude periods not in pensionable
months for employees turning 18 or
revoking CPP election)
11 Calculate total YTD CPP (YTD QPP contribution * CPP rate / QPP Total CPP contribution
deduction including rate) + ((YTD CPP pensionable + current (YTD including this period)
current period regular CPP pensionable + current
supplemental CPP pensionable -
prorated CPP exemption) * CPP
contribution rate)
12 Calculate CPP contribution If Total CPP contribution >= Prorated Current CPP contribution
for this period annual maximum contribution (both Employee and
Employer).
THEN
If employee was already at or
Current CPP contribution = Prorated above the prorated annual
annual maximum contribution – CPP maximum contribution, the
YTD contribution – (YTD QPP current CPP contribution by
contribution * CPP rate / QPP rate) Employee and Employer will
ENDIF
12.5 Limit Refund amount IF CPP YTD contribution + (YTD QPP Current CPP contribution
contribution * CPP contribution rate / (both Employee and
QPP contribution rate) + Current CPP Employer).
contribution < 0.00
Current CPP contribution = 0.00 If refund causes the total
- CPP YTD contribution – (YTD annual contribution to be
QPP contribution * CPP negative, limit the refund.
contribution rate / QPP
contribution rate)
ENDIF
13 Save full CPP contribution CPP Withheld = Current CPP CPP Withheld
and Supplemental CPP contribution
contribution CPP Supplemental Withheld
CPP Supplemental Withheld = Current
CPP contribution * (current
supplemental CPP pensionable /
(current supplemental CPP pensionable
+ current regular CPP pensionable))
14 (CRA prescribed YAMPE – CRA Prorated annual maximum
prescribed YMPE) * pensionable months CPP2 contribution
/ 12 * CPP second enhancement rate
14.5 Calculate prorated YAMPE CRA prescribed YAMPE * pensionable Prorated YAMPE
months / 12
15 Calculate total CPP2 IF (YTD QPP reduced subject + YTD CPP total CPP2 contribution
contribution, CPP2 reduced subject + current regular CPP
Employee taxable and reduced subject + current supplemental CPP2 Employee taxable
CPP2 Employee CPP reduced subject – prorated YMPE) >
supplemental taxable 0.00 CPP2 Employee supplemental
Total CPP2 contribution = (YTD taxable
QPP reduced subject + YTD CPP
reduced subject + current
regular CPP reduced subject +
current supplemental CPP
reduced subject – prorated
YMPE) * CPP second
enhancement rate
CPP2 Employee
Supplemental taxable =
CPP2 Employee taxable
* (current
supplemental CPP
reduced subject /
(current supplemental
CPP reduced subject +
current regular CPP
reduced subject))
ELSE
CPP2 Employee
Supplemental taxable =
CPP2 Employee taxable
* (current
supplemental CPP
reduced subject /
(current supplemental
CPP reduced subject +
current regular CPP
reduced subject))
ELSE
Current CPP2 contribution =
0.00
Go to step 17
ENDIF
16 Limit the current CPP2 IF total CPP2 contribution > Prorated Current CPP2 contribution
contribution to prorated annual maximum CPP2 contribution
annual maximum
Current CPP2 Contribution =
Prorated annual maximum
CPP2 contribution – YTD CPP2
- (YTD QPP2 * CPP second
enhancement rate / QPP
second enhancement rate)
ELSE
Current CPP2 contribution =
total CPP2 contribution – YTD
CPP2 – (YTD QPP2 * CPP
second enhancement rate /
QPP second enhancement rate)
ENDIF
16.5 Limit Refund amount IF YTD CPP2 + (YTD QPP2 * CPP second Current CPP2 contribution
enhancement rate / QPP second (both Employee and
enhancement rate) + Current CPP2 Employer).
contribution < 0.00
Current CPP2 contribution = If refund causes the total
0.00 - YTD CPP2 + (YTD QPP2 annual contribution to be
* CPP second enhancement negative, limit the refund.
rate / QPP second
enhancement rate)
ENDIF
17 Save full CPP2 CPP2 Withheld = Current CPP2 CPP2 Withheld
contribution and contribution
Supplemental CPP2 CPP2 Supplemental Withheld
contribution CPP2 Supplemental Withheld = Current
CPP2 contribution * (current
supplemental CPP reduced subject /
(current supplemental CPP reduced
1 Check for CPP eligibility If Ee has no pensionable income in -current CPP pensionable
Canada outside of Quebec. earnings = 0
OR
OR
ELSE
7.5 Determine CPP exemption If Federal Tax Card-Commission current pay period CPP
for commissioned Remuneration > 0.00 exemption.
employee • N = the lesser of:
o Current payment date –
Jan 1 of current year
(minimum 1)
o Current payment date –
most recent payment
date
o Current payment date –
employee’s date of hire
• current pay period CPP
exemption = the greater of:
o CRA prescribed CPP
annual basic
exemption * N / 365
and
o 67.30 – PTD CPP
exemption
• If current pay period CPP
exemption + YTD CPP
exemption + YTD QPP
exemption > CRA prescribed
CPP annual basic exemption
THEN
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Canada Pension Plan
Self Adjust at Maximum Method
11.5 Limit Refund amount IF CPP YTD contribution + (YTD QPP Current CPP contribution
contribution * CPP contribution rate / (both Employee and
QPP contribution rate) + Current CPP Employer).
contribution < 0.00
Current CPP contribution = 0.00 If refund causes the total
- CPP YTD contribution – (YTD annual contribution to be
QPP contribution * CPP negative, limit the refund.
contribution rate / QPP
contribution rate)
ENDIF
12 Save full CPP contribution CPP Withheld = Current CPP CPP Withheld
and Supplemental CPP contribution
contribution CPP Supplemental Withheld
CPP Supplemental Withheld = Current
CPP contribution * (current
supplemental CPP pensionable /
(current supplemental CPP pensionable
+ current regular CPP pensionable))
13 CRA prescribed YAMPE * pensionable Prorated YAMPE
months / 12
14 (Prorated YAMPE – Prorated YMPE) * Prorated annual maximum
CPP second enhancement rate CPP2 contribution
15 Calculate W W = the greater of: W=
• YTD CPP pensionable + YTD
QPP pensionable and
Prorated YMPE
16 Calculate CPP2 Employee CPP2 Employee taxable is the greater of: CPP2 Employee taxable
taxable
YTD QPP reduced subject +
YTD CPP reduced subject +
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Canada Pension Plan
Self Adjust at Maximum Method
ENDIF
18.5 Limit Refund amount IF YTD CPP2 + (YTD QPP2 * CPP second Current CPP2 contribution
enhancement rate / QPP second (both Employee and
Employer).
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Canada Pension Plan
Self Adjust at Maximum Method
Overview of QPP
Quebec Pension Plan, administered by the Quebec provincial government, provides a basic pension to those who
have made QPP contributions during their employment and who are at least 60 years old. QPP contributions start
the month after an employee turns 18. Contributions are based on QPP pensionable income less an exempt
amount. Employers contribute an amount equal to the employee contributions.
Note the Self Adjust Regular and Self Adjust Annual columns. Many of the steps are common for both methods.
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Step CPP QPP
*The 2023 rates in this table are for illustrative purposes only, to support the eQPP phase 2 formulas below. The
rates will be updated with 2024 values when they are available
2023 rates/amounts
2022 rates/amounts
2021 rates/amounts
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Step CPP QPP
Eligibility Check for QPP 1. Starts the month following the See calculation step 1.
eligibility employee turning 18
2. Province of Employment is
Quebec.
Exempt from QPP if the ‘QPP Exempt’
flag is checked on the Provincial portion
of the tax card.
Proration Prorate QPP If an employee is eligible for less than the See calculation step 2.
annual maximum full year, the annual maximum deduction
deduction and and the yearly maximum pensionable
YMPE earnings are prorated.
Application Provinces Applicable only to Quebec.
Annual Formulas must respect the annual
maximums maximum YMPE and maximum annual
deduction.
Recognize past Formula must recognize prior CPP
CPP pensionable pensionable earnings and CPP
earnings / CPP deductions for employees who were
deductions subject to CPP earlier in the year
PTD QPP No legislative equivalent. In cases where the pay period
Exemption exemption
is not fully “used” in a pay run, any
remaining pay period exemption will
be
used in subsequent pay runs for that
employee in that pay period.
No QPP If a non periodic payment is made and no
exemption when regular remuneration is paid in the pay
there is no regular run, no QPP exemption is applied
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Legislative Legislative Legislative Rules Notes
Requirement Description
remuneration in
the pay run.
QPP pay period “determine the number of pay periods at The number of pay periods in the
exemption the start of the year” year is
determined by determined by the actual payroll
actual number of calendar
pay periods in the (number of pay dates) and not a
year. fixed
number (e.g. 26 for biweekly)
Transfer to When an employee is transferred from an
Quebec from establishment subject to CPP to an
other location in establishment subject to QPP during a
Canada pay period, the pensionable earnings and
benefits for the entire pay period are
considered to be QPP pensionable.
Special Notes
This section is specific to the calculation of QPP. While it takes into account the scenario whereby an employee
had contributed to CPP earlier in the year, the actual calculation of CPP is covered in another section of this
document.
This section does not deal with the determination of which earnings or benefits are considered pensionable.
The QPP Self Adjust Method calculates QPP contributions until the employee’s YTD pensionable wages reach the
prorated Yearly Maximum Pensionable Earnings. Each pay period, the YTD QPP contribution is compared to the
amount of QPP that should have been withheld, based on the YTD pensionable earnings. If necessary, an
adjustment is made to the calculated QPP contribution to synchronize the employee’s QPP contribution with their
pensionable wages.
1 Check for QPP eligibility If Ee has no pensionable income in -current QPP pensionable
Quebec. earnings = 0
OR
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Quebec Pension Plan
Self Adjust Method
2a Prorate QPP annual IF Ee turns 18 in the calendar year of the pensionable months
maximum deduction and pay period pay date
YMPE: • pensionable months = 12 – birth
month
ELSE
• pensionable months = 12
ENDIF
ELSE
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Quebec Pension Plan
Self Adjust Method
7.5 Determine QPP exemption If Regional Tax Card-Commission Prorated QPP exemption.
for commissioned Remuneration > 0.00
employee • N = the lesser of:
o Current payment date –
Jan 1 of current year
(minimum 1)
o Current payment date –
most recent payment
date
o Current payment date –
employee’s date of hire
• Prorated QPP exemption = the
greater of:
o RQ prescribed QPP
annual basic
exemption * N / 365
and
o 67.30 – PTD QPP
exemption
• If Prorated QPP exemption +
YTD QPP exemption + YTD CPP
exemption > RQ prescribed
QPP annual basic exemption
o Prorated QPP
exemption = RQ
prescribed QPP annual
basic exemption – YTD
QPP exemption – YTD
CPP exemption
• ENDIF
• Go to step 11
ENDIF
8 Determine QPP full pay Revenue Quebec prescribed QPP annual Full Pay period exemption
period exemption basic exemption / number of pay
periods in the year.
(the number of pay periods in the year is
derived from the payroll calendar).
(truncate after the second decimal digit).
9 Determine current pay If there are no current regular QPP Current pay period
period exemption and the pensionable earnings, the current pay exemption.
Period to Date (PTD) pay period exemption = 0.
period exemption PTD pay period exemption
IF Current QPP Pensionable earnings >
(full pay period exemption – PTD pay
period exemption)
• Current pay period exemption =
full pay period exemption – PTD
pay period exemption
• PTD pay period exemption =
full pay period exemption
ELSE
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Quebec Pension Plan
Self Adjust Method
10 QPP exemption total (full pay period exemption * number of Prorated QPP exemption
through current pay QPP pensionable pay periods to-date in
period current year prior to the current period1)
+ PTD pay period exemption.
11 Calculate total YTD QPP (YTD CPP contribution * QPP rate / CPP Total QPP contribution (YTD
deduction including rate) + including this period)
current period ((YTD QPP pensionable + current
regular QPP pensionable + current
supplemental QPP pensionable -
prorated QPP exemption) * QPP
contribution rate)
12 Calculate QPP contribution If Total QPP contribution >= Prorated Current QPP contribution
for this period annual maximum contribution (both Employee and
Employer).
THEN
If employee was already at or
Current QPP contribution = Prorated above the prorated annual
annual maximum contribution - QPP maximum contribution, the
YTD contribution – (YTD CPP current QPP contribution by
contribution * QPP rate / CPP rate) Employee and Employer will
either be zero (if at the
ELSE prorated YMPE) or a refund (if
above the prorated YMPE).
Current QPP contribution = Total QPP
contribution – QPP YTD contribution –
(YTD CPP contribution * QPP rate / CPP
rate)
ENDIF
12.5 Limit Refund amount IF QPP YTD contribution + (YTD CPP Current QPP contribution
contribution * QPP contribution rate / (both Employee and
Employer).
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Quebec Pension Plan
Self Adjust Method
QPP2 Employee
taxable = (prorated
YAMPE – prorate YMPE
– YTD QPP2 Employee
taxable – YTD CPP2
Employee taxable
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Quebec Pension Plan
Self Adjust Method
QPP2 Employee
Supplemental taxable =
QPP2 Employee
taxable * (current
supplemental QPP
reduced subject /
(current supplemental
QPP reduced subject +
current regular QPP
reduced subject))
ELSE
QPP2 Employee
taxable = YTD CPP
reduced subject + YTD
QPP reduced subject +
current regular QPP
reduced subject +
current supplemental
QPP reduced subject –
prorated YMPE – YTD
QPP2 Employee
taxable – YTD CPP2
Employee taxable
QPP2 Employee
Supplemental taxable =
QPP2 Employee
taxable * (current
supplemental QPP
reduced subject /
(current supplemental
QPP reduced subject +
current regular QPP
reduced subject))
ELSE
Current QPP2 contribution =
0.00
QPP2 Employee Taxable = 0.00
Go to step 17
ENDIF
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Quebec Pension Plan
Self Adjust Method
16 Limit the current QPP2 IF total QPP2 contribution > Prorated Current QPP2 contribution
contribution to prorated annual maximum QPP2 contribution
annual maximum
Current QPP2 Contribution =
Prorated annual maximum
QPP2 contribution – YTD QPP2
- (YTD CPP2 * QPP second
enhancement rate / CPP
second enhancement rate)
ELSE
Current QPP2 contribution =
total QPP2 contribution – YTD
QPP2 – (YTD CPP2 * QPP
second enhancement rate /
CPP second enhancement rate)
ENDIF
16.5 Limit Refund amount IF YTD QPP2 + (YTD CPP2 * QPP Current QPP2 contribution
second enhancement rate / CPP second (both Employee and
enhancement rate) + Current QPP2 Employer).
contribution < 0.00
Current QPP2 contribution = If refund causes the total
0.00 - YTD QPP2 + (YTD CPP2 annual contribution to be
* QPP second enhancement negative, limit the refund.
rate / CPP second
enhancement rate)
ENDIF
17 Save full QPP2 QPP2 Withheld = Current QPP2 QPP2 Withheld
contribution and contribution
Supplemental QPP2 QPP2 Supplemental Withheld
contribution QPP2 Supplemental Withheld = Current
QPP2 contribution * (current
supplemental QPP reduced subject /
(current supplemental
QPP reduced subject + current regular
QPP reduced subject))
The QPP Self Adjust at Maximum Method calculates QPP contributions until the employee’s YTD pensionable
wages reach the prorated Yearly Maximum Pensionable Earnings. In the pay period where the YTD pensionable
earnings reach the prorated yearly maximum Pensionable Earnings, the YTD QPP contribution is compared to the
prorated Annual Maximum Contribution. If necessary, an adjustment is made to the calculated QPP contribution
to synchronize the employee’s QPP contribution with their pensionable wages.
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Quebec Pension Plan
Self Adjust at Maximum Method
1 Check for QPP eligibility If Ee has no pensionable income in -current QPP pensionable
Quebec. earnings = 0
OR
2a Prorate QPP annual IF Ee turns 18 in the calendar year of the pensionable months
maximum deduction and pay period pay date
YMPE: • pensionable months = 12 – birth
month
ELSE
• pensionable months = 12
ENDIF
2b Quebec prescribed YMPE * pensionable Prorated YMPE
months / 12
2c (Quebec prescribed YMPE – Annual Prorated annual maximum
basic exemption) * pensionable months contribution
/ 12 * QPP contribution rate
3 Identify CPP pensionable YTD regular CPP pensionable earnings + YTD CPP pensionable
earnings prior to current YTD supplemental CPP pensionable
pay earnings
4 Identify QPP pensionable YTD regular QPP pensionable earnings YTD QPP pensionable
earnings prior to current +
pay YTD supplemental QPP pensionable
earnings
5 Identify all pensionable YTD pensionable = YTD CPP YTD pensionable
earnings prior to current pensionable + YTD QPP pensionable
pay
6 Find sum of CPP/QPP YTD pensionable + Total pensionable earnings
pensionable earnings prior current regular QPP pensionable +
to current pay plus current current supplemental QPP pensionable
QPP pensionable earnings
7 Calculate current If Total pensionable earnings >= Current QPP pensionable
pensionable earnings prorated YMPE earnings
ELSE
7.5 Determine QPP exemption If Regional Tax Card-Commission current pay period QPP
for commissioned Remuneration > 0.00 exemption.
employee • N = the lesser of:
o Current payment date –
Jan 1 of current year
(minimum 1)
o Current payment date –
most recent payment
date
o Current payment date –
employee’s date of hire
• current pay period QPP
exemption = the greater of:
o RQ prescribed QPP
annual basic
exemption * N / 365
and
o 67.30 – PTD QPP
exemption
• If current pay period QPP
exemption + YTD QPP
exemption + YTD CPP
exemption > RQ prescribed
QPP annual basic exemption
o Current pay period QPP
exemption = RQ
prescribed QPP annual
basic exemption – YTD
QPP exemption – YTD
CPP exemption
• ENDIF
• Go to step 10
ENDIF
8 Determine QPP full pay Revenue Quebec prescribed QPP annual Full Pay period exemption
period exemption basic exemption / number of pay
periods in the year.
(the number of pay periods in the year is
derived from the payroll calendar).
(truncate after the second decimal digit).
9 Determine current pay If there are no current regular QPP Current pay period
period exemption and the pensionable earnings, the current pay exemption.
period exemption = 0.
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Quebec Pension Plan
Self Adjust at Maximum Method
THEN
• current QPP contribution is the
greater of
o prorated annual
maximum contribution
– QPP YTD contribution
– (YTD CPP
contribution * QPP rate
/ CPP rate) OR
o 0.00
ELSE
• Current QPP contribution =
(current regular QPP
pensionable + current
supplemental QPP pensionable
– current pay period QPP
exemption) * QPP contribution
rate
ENDIF
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Quebec Pension Plan
Self Adjust at Maximum Method
11 Limit current QPP IF (YTD CPP contribution * QPP rate / Current QPP contribution
contribution to the CPP rate) + (both Employee and
Prorated annual maximum YTD QPP contribution + Employer)
contribution Current QPP contribution >= Prorated
annual maximum contribution If employee is at or above the
prorated annual maximum
THEN contribution, the current QPP
contribution by Employee and
Current QPP contribution = Employer will either be zero (if
Prorated annual maximum contribution at the prorated YMPE) or a
- QPP YTD contribution – (YTD CPP refund (if above the prorated
contribution * QPP rate / CPP rate) YMPE).
ENDIF
11.5 Limit Refund amount IF QPP YTD contribution + (YTD CPP Current QPP contribution
contribution * QPP contribution rate / (both Employee and
CPP contribution rate) + Current QPP Employer).
contribution < 0.00
Current QPP contribution = If refund causes the total
0.00 - QPP YTD contribution – annual contribution to be
(YTD CPP contribution * QPP negative, limit the refund.
contribution rate / CPP
contribution rate)
ENDIF
12 Save full QPP contribution QPP Withheld = Current QPP QPP Withheld
and Supplemental QPP contribution
contribution QPP Supplemental Withheld
QPP Supplemental Withheld = Current
QPP contribution * (current
supplemental QPP pensionable /
(current supplemental QPP pensionable
+ current regular QPP pensionable))
13 RQ prescribed YAMPE * pensionable Prorated YAMPE
months / 12
14 (Prorated YAMPE – Prorated YMPE) * Prorated annual maximum
QPP second enhancement rate QPP2 contribution
15 Calculate W W = the greater of: W=
• YTD QPP pensionable + YTD
CPP pensionable and Note: this calculation requires
Prorated YMPE pensionable, not subject
16 Calculate QPP2 Employee QPP2 Employee taxable the greater of: QPP2 Employee taxable
taxable
YTD CPP reduced subject + YTD
QPP reduced subject + current
regular QPP reduced subject +
current supplemental QPP
reduced subject – W
AND
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Self Adjust at Maximum Method
0.00
18 Limit current QPP2 IF (YTD CPP2 contribution * QPP second Current QPP2 contribution
contribution to the enhancement rate / CPP second (both Employee and
Prorated annual maximum enhancement rate) + Employer)
QPP2 contribution YTD QPP2 contribution +
Current QPP2 contribution >= Prorated If employee is at or above the
annual maximum QPP2 contribution prorated annual maximum
QPP2 contribution, the current
THEN QPP2 contribution by
Employee and Employer will
Current QPP2 contribution = either be zero (if at the
Prorated annual maximum QPP2 prorated YAMPE) or a refund
contribution – YTD QPP2 contribution – (if above the prorated
(YTD CPP2 contribution * QPP second YAMPE).
enhancement rate / CPP second
enhancement rate)
ENDIF
18.5 Limit Refund amount IF YTD QPP2 + (YTD CPP2 * QPP Current QPP2 contribution
second enhancement rate / CPP second (both Employee and
enhancement rate) + Current QPP2 Employer).
contribution < 0.00
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Quebec Pension Plan
Self Adjust at Maximum Method
Unemployment
EI is funded by employee and employer contributions. Employees contribute a percentage of their insurable
earnings, up to an annual maximum. Employers contribute an amount based on a factor multiplied by the
employee contribution.
Employees and Employers in Quebec also contribute to EI, however their contribution rates are less than the rest
of Canada because they also contribute to the Quebec Parental Insurance Plan (QPIP) that covers certain benefits
for Quebec residents that EI typically covers.
The formula below describes the way in which the employee contribution to EI is calculated. The employer
contribution is determined by multiplying the employee contribution by a specified factor. That employer factor
is 1.4 times the employee contribution unless the employer has applied for and received a reduced rate due to
providing to their employees a qualified short term disability plan which reduces the EI benefits that would be
payable if such a plan did not exist.
The purpose of this section is to document the calculation of Employment Insurance. It does not deal with the
determination of insurability of specific earnings nor does it address the period to which insurable earnings are
assigned.
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Rates/Amounts for EI
2023 rates/amounts
EI EI (Quebec)
2022 rates/amounts
EI EI (Quebec)
2021 rates/amounts
EI EI (Quebec)
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EI Legislative Requirements/Business Rules
Proration N/A
Application Annual Stop deducting EI premiums Insurable earnings within a PSU
maximums on employment with an are
employer when the shared to determine the YTD
employee’s annual insurable insurable
earnings reach the limit
maximum insurable
earnings.
When an employee changes This is implemented as
province of employment “province where
during the year but stays Annual Maximum Contributory
with the same employer, the Earnings
maximum premium for the is reached”.
year is based on the
province where the first
$56,300 of insurable
earnings is paid
Self Adjust No related legislation adjusts the deduction based on
the
insurable earnings every
payroll
Self Adjust will only adjust
within the
current TRU. Interprovincial
transfers
in the year will self adjust unless
one
of the provinces involved is
Quebec.
Over deduction of EI premiums
are refunded and negative
adjustments to YTD insurable
earnings are processed if
maximum is exceeded.
Self Adjust at No related legislation adjusts the deduction based on
Maximum the insurable earnings when the
maximum annual contributory
earnings are reached.
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Legislative Legislative Legislative Rules Notes
Requirement Description
EI Special Notes
This section is specific to the calculation of EI
This section does not deal with the determination of which earnings or benefits are considered insurable.
1 Check for Federal EI Ee has ‘EI Exempt’ flag checked on the -current EI insurable earnings
Eligibility Tax Calculation card = 0.00
-current EI contribution =
0.00
-exit EI processing
2 Determine PSU YTD PSU YTD insurable earnings = sum of PSU YTD insurable earnings
insurable earnings YTD insurable earnings for all provinces
and territories in the current PSU This value is required as the
Annual Maximum Insurable
Earnings is based on PSU
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Federal Employment Insurance
Self Adjust Method
3 Determine current IF PSU YTD insurable earnings >= Current insurable earnings
insurable earnings Annual Maximum Insurable earnings
AND Quebec YTD insurable earnings >
0.00
• Current insurable earnings =
0.00
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Federal Employment Insurance (EI) – Self Adjust at Maximum formula
Table 36. Federal Employment Insurance (EI) – Self Adjust at Maximum formula
1 Check for EI Eligibility If Ee has ‘EI Exempt’ flag checked on the -current EI insurable earnings
Tax Calculation card = 0.00
-current EI contribution =
0.00
-exit EI processing
2 Determine PSU YTD PSU YTD insurable earnings = sum of PSU YTD insurable earnings
insurable earnings YTD insurable earnings for all provinces
and territories in the current PSU This value is required as the
Annual Maximum Insurable
Earnings is based on PSU
2.5 Determine TRU/Province TRU/Province YTD insurable earnings = TRU/Province YTD insurable
YTD insurable earnings sum of YTD insurable earnings for earnings
current province/territory in the current
TRU This value is required because
the logic will respect the
Annual Maximum employee
premium if the employee has
been in the same
TRU/Province for the entire
year.
3 Determine current IF PSU YTD insurable earnings >= Current insurable earnings =
insurable earnings Annual Maximum Insurable earnings
AND Quebec YTD insurable earnings > Reached Max flag =
0.00
• Current insurable earnings = If YTD insurable earnings
0.00 exceed annual maximum and
• Reached Max flag = Yes employee previously had POE
= QC in the current year, do
not calculate current negative
ELSEIf PSU YTD insurable earnings + insurable earnings
current insurable earnings >= Annual
Maximum Insurable earnings
• Current insurable earnings =
Annual Maximum Insurable
Earnings – PSU YTD insurable
earnings
• Reached Max flag = Yes
Else
• Current insurable earnings =
current insurable earnings
• Reached Max flag = No
ENDIF
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Federal Employment Insurance
Self Adjust at Maximum Method
4 Did employee work in If Quebec YTD insurable earnings > 0.00 Current employee EI Premium
Quebec in the current • Current employee EI premium =
year? Current insurable earnings * If employee previously worked
federal EI premium rate in Quebec in the current year,
employee no self adjust is performed.
ELSE (employee did not work in QC in
current year) If employee has no Province
• If Reached Max flag = yes or TRU change in the year,
o Current employee EI enforce the maximum annual
Premium = Annual employee EI contribution.
Maximum Premium –
PSU YTD Employee
premium
• ELSE
o Current employee EI
premium = Current
insurable earnings *
federal EI premium rate
employee
o IF PSU YTD insurable
earnings =
TRU/Province YTD
insurable earnings AND
(Current employee EI
premium + PSU YTD
employee EI Premium
> Annual Maximum
employee premium)
▪ Current
employee EI
premium =
Annual
Maximum
employee
premium –
PSU YTD
employee EI
premium.
o ENDIF
• ENDIF
ENDIF
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Federal Employment Insurance
Self Adjust at Maximum Method
1 Check for Quebec EI Ee has ‘EI Exempt’ flag checked on the -current EI insurable earnings
Eligibility Tax Calculation card for Quebec = 0.00
-current EI contribution =
0.00
-exit EI processing
2 Determine PSU YTD PSU YTD insurable earnings = sum of PSU YTD insurable earnings
insurable earnings YTD insurable earnings for all provinces
and territories in the current PSU This value is required as the
Annual Maximum Insurable
Earnings is based on PSU
3 Determine QC YTD QC/PSU YTD insurable earnings = sum QC/PSU YTD insurable
insurable earnings in of YTD insurable earnings for QC in the earnings
current PSU current PSU
This value is required because
the self adjust can only be
done within the province of
Quebec for the current PSU.
4 Determine current If PSU YTD insurable earnings >= Current insurable earnings
insurable earnings Annual Maximum Insurable earnings
AND PSU YTD insurable earnings >
Quebec YTD insurable earnings
• Current insurable earnings =
0.00
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Quebec Employment Insurance
Self Adjust Method
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Quebec Employment Insurance (EI) – Self Adjust at Maximum formula
Table 38. Quebec Employment Insurance (EI) – Self Adjust at Maximum formula
1 Check for EI Eligibility If Ee has ‘EI Exempt’ flag checked on the -current EI insurable earnings
Tax Calculation card for Quebec = 0.00
-current EI contribution =
0.00
-exit EI processing
2 Determine PSU YTD PSU YTD insurable earnings = sum of PSU YTD insurable earnings
insurable earnings YTD insurable earnings for all provinces
and territories in the current PSU This value is required as the
Annual Maximum Insurable
Earnings is based on PSU
2.5 Determine TRU/Province TRU/Province YTD insurable earnings = TRU/Province YTD insurable
YTD insurable earnings sum of YTD insurable earnings for earnings
current province/territory in the current
TRU This value is required because
the logic will respect the
Annual Maximum employee
premium if the employee has
been in the same
TRU/Province for the entire
year.
3 Determine QC YTD QC/PSU YTD insurable earnings = sum QC/PSU YTD insurable
insurable earnings in the of YTD insurable earnings for QC in the earnings
current PSU current PSU
This value is required because
the self adjust can only be
done within the province of
Quebec for the current PSU.
4 Determine current If PSU YTD insurable earnings >= Current insurable earnings =
insurable earnings Annual Maximum Insurable earnings
AND PSU YTD insurable earnings > Reached Max flag =
Quebec YTD insurable earnings
• Current insurable earnings =
0.00
• Reached Max flag = Yes
Else
• Current insurable earnings =
current insurable earnings
• Reached Max flag = No
ENDIF
5 Did employee work in If PSU YTD insurable earnings > Current employee EI Premium
another province in the QC/PSU YTD insurable earnings
current year? • Current employee EI premium = If employee previously worked
Current insurable earnings * in another province in the
Quebec EI premium rate current year, no self adjust is
employee performed.
ELSE (no other province in current year)
• If Reached Max flag = yes
o Current employee EI
Premium = Annual
Maximum Premium –
PSU YTD Employee
premium
• ELSE
o Current employee EI
premium = Current
insurable earnings *
Quebec EI premium
rate employee
o IF PSU YTD insurable
earnings =
TRU/Province YTD
insurable earnings AND
(Current employee EI
premium + PSU YTD
employee EI Premium
> Annual Maximum
Quebec employee EI
premium)
▪ Current
employee EI
premium =
Annual
Maximum
Quebec
employee EI
premium –
PSU YTD
employee EI
premium.
o ENDIF
o
• ENDIF
ENDIF
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Quebec Employment Insurance
Self Adjust at Maximum Method
To fund QPIP, employees contribute a percentage of their insurable income up to an annual maximum.
Employers contribute a percentage of the employee’s contribution.
2023 rates/amounts
QPIP (Quebec)
2022 rates/amounts
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COLUMN HEADING QPIP (Quebec)
2021 rates/amounts
1 Check for QPIP Eligibility If Ee has ‘QPIP Exempt’ flag checked on -current QPIP insurable
the Tax Calculation card for Quebec earnings = 0.00
OR
Province of Employment is not Quebec -current QPIP contribution =
0.00
2 Has the employee If PSU QPIP YTD insurable earnings >= Current employee QPIP
previously reached the QPIP Annual Maximum Insurable premium
QPIP Annual Maximum Earnings
Insurable Earnings in the • Current employee QPIP Current QPIP insurable
current PSU? premium = annual maximum earnings
QPIP premium – PSU QPIP YTD
premium
• Current QPIP insurable earnings
= QPIP Annual Maximum
Insurable Earnings - PSU QPIP
YTD insurable earnings
• Goto step 5
ENDIF
3 Determine current QPIP If PSU QPIP YTD insurable earnings + Current QPIP insurable
insurable earnings current QPIP insurable earnings >= QPIP earnings
Annual Maximum Insurable earnings
• Current QPIP insurable earnings
= QPIP Annual Maximum
Insurable Earnings – PSU QPIP
YTD insurable earnings
Else
Current QPIP insurable earnings =
current QPIP insurable earnings
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Quebec Parental Insurance Plan
Self Adjust Method
4 Calculate current Annual employee QPIP premium = (PSU Current employee QPIP
employee QPIP premium QPIP YTD insurable earnings + current premium
QPIP insurable earnings) * employee
QPIP premium rate
1 Check for QPIP Eligibility If Ee has ‘QPIP Exempt’ flag checked on -current QPIP insurable
the Tax Calculation card for Quebec earnings = 0.00
OR
Province of Employment is not Quebec -current QPIP contribution =
0.00
2 Has the employee If PSU QPIP YTD insurable earnings >= Current employee QPIP
previously reached the QPIP Annual Maximum Insurable premium
QPIP Annual Maximum Earnings
Insurable Earnings in the • Current employee QPIP Current QPIP insurable
current PSU? premium = annual maximum earnings
QPIP premium – PSU QPIP YTD
premium
• Current QPIP insurable earnings
= QPIP Annual Maximum
Insurable Earnings - PSU QPIP
YTD insurable earnings
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Quebec Parental Insurance Plan
Self Adjust at Maximum Method
• Goto step 5
ENDIF
3 Determine current QPIP If PSU QPIP YTD insurable earnings + Current QPIP insurable
insurable earnings current QPIP insurable earnings >= QPIP earnings
Annual Maximum Insurable earnings
• Current QPIP insurable earnings
= QPIP Annual Maximum
Insurable Earnings – PSU QPIP
YTD insurable earnings
• Reached Max flag = Yes
Else
• Current QPIP insurable earnings
= current QPIP insurable
earnings
Reached Max flag = No
4 Calculate current If Reached Max flag = yes Current employee QPIP
employee QPIP premium • Current employee QPIP premium
Premium = Annual Maximum
QPIP Premium – PSU QPIP YTD
Employee premium
ELSE
• Current employee QPIP
premium = Current QPIP
insurable earnings * employee
QPIP premium rate
o IF Current employee
QPIP premium + PSU
YTD employee QPIP
Premium > Annual
Maximum employee
QPIP premium)
▪ Current
employee QPIP
premium =
Annual
Maximum
employee QPIP
premium –
PSU YTD
employee QPIP
premium.
• ENDIF
ENDIF
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Quebec Parental Insurance Plan
Self Adjust at Maximum Method
Glossary
Abbreviation Name Description
CPP Canada Pension Plan A plan run by the Canadian government to provide contributors
and their families with retirement, disability, survivor, death and
children benefits.
CPT30 CRA form CPT30 Election to Stop Contributing to the Canada Pension Plan,
or Revocation of a Prior Election
CRA Canada Revenue An agency within the Canadian government tasked with
Agency administering tax laws for Canada and most of the provinces and
territories.
Ee Employee
EI Employment The program run by Service Canada for the provision of benefits
Insurance to unemployed and underemployed workers
Election Regarding CPP calculations, if an employee is between 65 and 70
and continues to earn salary/wages, they can submit CRA form
CPT30 to their employer, “electing” to stop paying CPP
contributions. The election is effective the first pay of the month
following receipt of the form from the employee.
Er Employer
PDOC Payroll Deductions
Online Calculator
POE Province of
Employment
PSU Payroll Statutory Unit Represents a specific legal company. i.e.the 9 first digits in the
CRA Business number/account number 12345677869RP0001
PTD Period to Date Use in various contexts to indicate a cumulative amount in the
current pay period
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Abbreviation Name Description
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