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Canadian Oracle Payroll Tax Engine Calculation Guide

The Canadian Oracle Payroll Tax Engine Calculation Guide provides detailed steps for calculating regulatory tax withholdings related to employment income in Canada, based on legislation effective as of July 1, 2023. It includes information on federal and provincial payroll taxes, Canada Pension Plan, Employment Insurance, and other relevant tax details, along with tables and formulas for accurate calculations. The document is proprietary to Oracle and is intended for informational purposes only, not as a commitment to deliver specific features or functionality.

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0% found this document useful (0 votes)

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Canadian Oracle Payroll Tax Engine Calculation Guide

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CANADIAN ORACLE

PAYROLL TAX ENGINE

CALCULATION GUIDE
August, 2023, Version 1.0
Copyright © 2023, Oracle and/or its affiliates
Public
Purpose statement
The purpose of this document is to provide information on the detailed steps in the calculation of the various
regulatory tax withholdings related to employment income in Canada. The information contained herein is based
on the legislation in effect as of July 1, 2023, and will be updated as required due to future legislative changes.

Disclaimer
This document in any form, software or printed matter, contains proprietary information that is the exclusive
property of Oracle. Your access to and use of this confidential material is subject to the terms and conditions of
your Oracle software license and service agreement, which has been executed and with which you agree to
comply. This document and information contained herein may not be disclosed, copied, reproduced or
distributed to anyone outside Oracle without prior written consent of Oracle. This document is not part of your
license agreement, nor can it be incorporated into any contractual agreement with Oracle or its subsidiaries or
affiliates.

This document is for informational purposes only and is intended solely to assist you in planning for the
implementation and upgrade of the product features described. It is not a commitment to deliver any material,
code, or functionality, and should not be relied upon in making purchasing decisions. The development, release,
timing, and pricing of any features or functionality described in this document remains at the sole discretion of
Oracle. Due to the nature of the product architecture, it may not be possible to safely include all features
described in this document without risking significant destabilization of the code.

2 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

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

4 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Copyright © 2023, Oracle and/or its affiliates / Public
List of tables
Table 1. Federal R/K table 7
Table 2. Federal Lump sum withholding rates 8
Table 3. Provincial/territorial V/KP /table 9
Table 4. Other Federal and provincial rates and amounts 14
Table 5. Factor V1 thresholds and rates 17
Table 6. Factor V2 thresholds and rates 18
Table 7. Factor S thresholds and rates 19
Table 8. Basic Personal Amount thresholds and amounts 20
Table 9. Legislative Requirements/Business Rules for
Federal/Provincial Payroll Tax 21
Table 10. Federal Tax Formula Factors 22
Table 11 Federal / Provincial Regular taxation formula 27
Table 12. YTD Bonus taxation formula 60
Table 13. Federal / Provincial Commission taxation formula 65
Table 14. Rates/Amounts for Quebec Payroll Tax 67
Table 15. Other Quebec rates and amounts 68
Table 16. Quebec Lump sum withholding rates and amounts 69
Table 17. Legislative Requirements/Business Rules for Quebec Payroll
Tax 70
Table 18. Quebec Tax Formula Factors 71
Table 19. Quebec Regular taxation formula 75
Table 20. Quebec Non-Periodic taxation formula 77
Table 21. Quebec Cumulative Averaging (commission) taxation
formula 81
Table 22. Rates/Amounts for NT/NU Territory Payroll Tax 84
Table 23 Legislative Requirements/Business Rules for NT/NU Territory
Payroll.Tax 84
Table 24. Calculation details for NT/NU Territory Payroll Tax 85
Table 25. Rates/Amounts for CPP 86
Table 26. Legislative Requirements/Business Rules 88
Table 27.Calculation Details: CPP Self Adjust Method 89
Table 28. Calculation Details: CPP Self Adjust at Maximum Method 97
Table 29. Quebec Pension Plan (QPP) 103
Table 30. Legislative Requirements/Business Rules 105
Table 31 QPP Self Adjust method 106
Table 32. QPP Self Adjust at Maximum method 112
Table 33.Rates/Amounts for Employment Insurance (EI 119
Table 34. EI Legislative Requirements/Business Rules 120
Table 35. Federal Employment Insurance (EI) – Self Adjust formula 121
Table 36. Federal Employment Insurance (EI) – Self Adjust at Maximum
formula 123
Table 37. Quebec Employment Insurance (EI) – Self Adjust formula 125
5 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0
Copyright © 2023, Oracle and/or its affiliates / Public
Table 38. Quebec Employment Insurance (EI) – Self Adjust at Maximum
formula 127
Table 39. Rates/Amounts for QPIP 129
Table 40. QPIP Legislative Requirements/Business Rules 130
Table 41 QPIP – Self Adjust formula. 131
Table 42 QPIP – Self Adjust at Maximum formula. 132

6 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Copyright © 2023, Oracle and/or its affiliates / Public
Overview
Oracle has created the Canadian Tax Calculation report as a troubleshooting mechanism to get a detailed
statement of how the tax was calculated for an employee. This report provides a detailed breakdown of the
calculations used in the Oracle Payroll Tax Engine for a payroll or Quickpay. The report is provided as a tool for
you to understand what factors were used in the calculations, as well as a detailed description of the calculation
steps that produced the taxes.

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.

How This Document Is Organized

The sections in this document are related to specific legislative tax deductions, such as Federal income tax,
Quebec income tax, Canada Pension Plan, etc. Each section contains some or all of the following information:

 An overview of the tax being calculated in that section

 tables containing the legislative data required

 Legislative requirements and Business rules

 A glossary of factors used in that tax formula

 Mapping of Fusion tax cards to CRA or Revenue Quebec formulas

 A detailed, step by step list of calculations required for that tax formula.

Income Tax

Federal/Provincial Payroll tax

The Oracle Fusion Federal/Provincial tax calculation makes use of the CRA Option 1 Tax Formula found in the
T4127 guide. Depending on the type of income, the tax formula used will either be the regular tax formula, the
commission tax formula, the regular bonus calculation, the year-to-date bonus calculation or the lump sum tax
calculation.

Rates/Amounts for Federal/Provincial Payroll Tax

Federal R/K table

Table 1. Federal R/K table

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

Effective Jan 1, 2023

7 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

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

Effective Jan 1, 2022

Annual Taxable Income (A) Rate (R) Constant (K)

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

Effective Jan 1, 2021

Annual Taxable Income (A) Rate (R) Constant (K)

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

Federal Lump sum withholding rates

Table 2. Federal Lump sum withholding rates

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.

Effective Jan 1, 2023 (unchanged from previous year)

Annual Taxable Income (A) Federal Quebec Non Resident

From To
0 5,000.00 10% 5% 25%
5,000.01 15,000.00 20% 10% 25%

8 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

From To
15,000.01 and over 30% 15% 25%

Effective Jan 1, 2022 (unchanged from previous year)

Annual Taxable Income (A) Federal Quebec Non Resident

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%

Effective Jan 1, 2021

Annual Taxable Income (A) Federal Quebec Non Resident

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%

Provincial/territorial V/KP /table

Table 3. Provincial/territorial V/KP /table

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.

Effective Jan 1, 2023

Province/Terr. Annual Taxable Income (A) Rate (V)l Constant (KP)

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

10 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

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

Effective Jan 1, 2022

Province/Terr. Annual Taxable Income (A) Rate (V)l Constant (KP)

11 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

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

12 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Province/Terr. Annual Taxable Income (A) Rate (V)l Constant (KP)

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

13 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

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

Other Federal and provincial rates and amounts

Table 4. Other Federal and provincial rates and amounts

Effective July 1, 2023

Basic Index LCP LCP CEA Y Abatement Surtax

amount rate rate amoun
t

Federal BPAF 0.063 0.150 750 1,368

AB 21,003 0.060
BC 11,981 0.060
MB 19,145 0.070 0.150 1,800
NB 12,458 0.063 0.200 2,000
NL 10,382 0.059
NS BPANS - 0.200 2,000
NT 16,593 0.063

14 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Copyright © 2023, Oracle and/or its affiliates / Public
Basic Index LCP LCP CEA Y Abatement Surtax
amount rate rate amoun
t

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

Effective Jan 1, 2023

Basic Index LCP LCP CEA Y Abatement Surtax

amount rate rate amoun
t

Federal BPAF 0.063 0.150 750 1,368

AB 21,003 0.060
BC 11,981 0.060
MB 10,855 0.070 0.150 1,800
NB 12,458 0.063 0.200 2,000
NL 10,382 0.059
NS BPANS - 0.200 2,000
NT 16,593 0.063
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

Effective July1, 2022

Basic Index LCP LCP CEA Y Abatement Surtax

amount rate rate amoun
t

Federal BPAF 0.024 0.150 750 1,287

15 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Copyright © 2023, Oracle and/or its affiliates / Public
Basic Index LCP LCP CEA Y Abatement Surtax
amount rate rate amoun
t

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

Effective Jan1, 2022

Basic Index LCP LCP CEA Y Abatement Surtax

amount rate rate amoun
t

Federal BPAF 0.024 0.150 750 1,287

AB 19,369 -
BC 11,302 0.021 0.150 2,000
MB 10,145 0.021 0.150 1,800
NB 10,817 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
16 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0
Copyright © 2023, Oracle and/or its affiliates / Public
Basic Index LCP LCP CEA Y Abatement Surtax
amount rate rate amoun
t

ZZ or US

Effective Jan1, 2021

Basic Index LCP LCP CEA Y Abatement Surtax

amount rate rate amount

Federal BPAF 0.010 0.150 750 1,257

AB 19,369 -
BC 11,070 0.011 0.150 2,000
MB 9,936 0.010
NB 10,564 0.010 0.200 2,000
NL 9,536 0.004 0.200 2,000
NS BPANS - 0.200 2,000
NT 15,243 0.010
NU 16,467 0.010
ON 10,880 0.009 464
PE 10,550
QC 0.165
SK 16,225 0.010 0.175 875
YT BPAYT 0.010 0.250 1,250 1,257
Outside 0.480
Canada
ZZ or US

Factor V1 thresholds and rates

Table 5. Factor V1 thresholds and rates

Effective Jan 1, 2023

Province Annual Basic Provincial Tax V1 rate V1 V1 rate 2 V1 constant 2

(T4) 1 constant 1

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

17 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Province Annual Basic Provincial Tax V1 rate V1 V1 rate 2 V1 constant 2

(T4) 1 constant 1

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

Effective Jan 1, 2021

Province Annual Basic Provincial Tax V1 rate V1 V1 rate 2 V1 constant 2

(T4) 1 constant 1

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

Factor V2 thresholds and rates

Table 6. Factor V2 thresholds and rates

Effective Jan 1, 2023 (no change from Jan, 2022)

Province Annual Taxable Income (A) V2 V1 constant 1 V2 constant

rate 2
Low High Threshold
Threshold
ON 0.00 20,000.00 0.00 0.00 0.00
20,000.01 36,000.00 0.06 300.00 0.00
36,000.01 48,000.00 0.06 450.00 300.00
48,000.01 72,000.00 0.25 600.00 450.00
72,000.01 200,000.00 0.25 750.00 600.00
200,000.01 and over 0.25 900.00 750.00

Effective Jan 1, 2022 (no change from Jan, 2021)

18 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Copyright © 2023, Oracle and/or its affiliates / Public
Province Annual Taxable Income (A) V2 V1 constant 1 V2 constant
rate 2
Low High Threshold
Threshold
ON 0.00 20,000.00 0.00 0.00 0.00
20,000.01 36,000.00 0.06 300.00 0.00
36,000.01 48,000.00 0.06 450.00 300.00
48,000.01 72,000.00 0.25 600.00 450.00
72,000.01 200,000.00 0.25 750.00 600.00
200,000.01 and over 0.25 900.00 750.00

Effective Jan 1, 2021

Province Annual Taxable Income (A) V2 V1 constant 1 V2 constant

Factor S thresholds and rates

Table 7. Factor S thresholds and rates

Effective Jan 1, 2023

Province Annual Taxable Income (A) S rate S2 constant

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

Effective Jan 1, 2022

Province Annual Taxable Income (A) S rate S2 constant

From To
BC 0.00 21,867.00 0.000 491.00
21,867.01 35,659.00 0.0356 491.00

19 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

From To
35,659.01 and over 0.000 0.00
ON 0.00 and over 2.000 257.00

Effective Jan 1, 2021

Province Annual Taxable Income (A) S rate S2 constant

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

Basic Personal Amount thresholds and amounts

Table 8. Basic Personal Amount thresholds and amounts

Effective Jan 1, 2023

Jurisdiction Low BPA High BPA Low High BPA

Threshold Threshold Percent

CA 13,521.00 15,000.00 165,430.00 235,675.00

NS 11,481.00 25,000.00 75,000.00 6%
YT 13,521.00 15,000.00 165,430.00 235,675.00

Effective Jan 1, 2022

Jurisdiction Low BPA High BPA Low High BPA

Threshold Threshold Percent

CA 12,719.00 14,398.00 155,625.00 221,708.00

NS 11,481.00 25,000.00 75,000.00 6%
YT 12,719.00 14,398.00 155,625.00 221,708.00

Effective Jan 1, 2021

Jurisdiction Low BPA High BPA Low High BPA

Threshold Threshold Percent

CA 12,421.00 13,808.00 151,978.00 216,511.00

NS 11,481.00 25,000.00 75,000.00 6%
YT 12,421.00 13,808.00 151,978.00 216,511.00

20 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Copyright © 2023, Oracle and/or its affiliates / Public
Legislative Requirements/Business Rules for Federal/Provincial Payroll Tax

Table 9. Legislative Requirements/Business Rules for Federal/Provincial Payroll Tax

Legislative Legislative Legislative/Business Rules Notes

Requirement Description

Any employee 1. Employees whose Province of 1. Eligible for federal

working, Employment is not ZZ or US and provincial tax
performing 2. Employee whose province of 2. Eligible for federal
duties or employment is ZZ or US tax only
services in 3. Employee whose is exempt from 3. Exempt from
Canada Federal and (non Quebec) Federal and non-
Eligibility provincial/territorial tax QC
4. Indian Exempt status is checked on provincial/territori
any active Assignment al tax
4. Exempt from
Federal and
Provincial/Territor
ial tax
Employee Use both the regular tax formula and Federal tax owed is the
paid both the bonus tax formula sum of the result of the
Application regular and two tax calculations
nonperiodic in
same pay run
N/A Business Rule: Federal Tax Rate This is an override for the
entered on the tax card. federal income tax rate. If
populated, the tax
calculation reduces the
pay period income by
Union dues and RRSP
contributions and
multiplies by the override
rate. It also adds any
requested additional tax
N/A Business Rule: Federal Tax Amount 1. In a payroll where only
entered on the tax card. elements with regular
taxation are processed,
the Federal Tax Amount
will replace the tax
calculation.
2. In a payroll run where
only elements with
nonperiodic taxation are
processed, the Federal
Tax Amount will replace
the tax calculation.
3. In a payroll run where
elements with both
regular and nonperiodic
taxation are processed,
the Federal Tax Amount
will only replace the tax
calculation for elements
21 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0
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Legislative Legislative Legislative/Business Rules Notes
Requirement Description

with regular taxation. The

tax on the elements with
nonperiodic taxation will
calculate independently.
4. In a payroll run where
elements with lump sum
taxation are processed,
the Federal Tax Amount is
ignored.
Business Rule: Federal or Provincial This is an override to the
Lump Sum Rate rate used for calculation
of taxes for lump sum
payments. If you do not
override the rate, the
deduction calculation uses
the prescribed rate.

This is only applicable for

supplemental earnings
where the Tax
Withholding Method is set
to Lump Sum (you can
determine that in the
element’s input value
“Supplemental Tax
Processing”).
Period to Date Aggregation PTD aggregation will
calculate taxes for all
regular earnings in the
period as if they had been
paid in a single payment
and will subtract the PTD
taxes already deducted
from prior regular
earnings in that period.

Calculation details for Federal/Provincial Payroll Tax

Federal Tax Formula Factors

Table 10. Federal Tax Formula Factors

Factor Meaning

A Annual taxable income

B Gross bonus, retroactive pay increase, vacation pay when vacation is not taken,
accumulated overtime payment or other non-periodic payment

22 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

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.

23 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

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
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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)

25 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

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

Mapping of Fusion Tax Card to CRA factors

The following illustrations list the data elements available on the Federal and Regional tax cards along with their
related CRA tax formula usage

26 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Copyright © 2023, Oracle and/or its affiliates / Public
Federal/Provincial Regular taxation formula
If PTD Aggregation Switch is turned off, the following balances will not be used in the tax calculation steps:
• F2PTD (federal)
• F5APTD (federal)
• PTD CPP withheld
• PTD CPP Supp Withheld
• PTD EI Withheld
• PTD EI Supp Withheld
• PTD QPIP Withheld
• PTD QPIP Supp Withheld
• PTD QPP Withheld
• PTD QPP Supp Withheld
• PTD Reg taxes
• PTD Supp taxes
• PTD F (federal)
• PTD I (federal)
• PTD U1 (federal)

Table 11 Federal / Provincial Regular taxation formula

Federal / Provincial Regular taxation formula

Step Description Logic Result

1 Check for Eligibility

IF current CPP Withheld = 0.00 and

current CPP2 withheld = 0.00

F5A = 0.00

ELSE

F5A = (current CPP Withheld * (1-

(current CPP Supp withheld /

27 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

current CPP Withheld)) * CPP first

enhancement rate / CPP
contribution rate) + (current CPP2
Withheld * (1- (current CPP2
Supplemental withheld / current
CPP2 Withheld)))

ENDIF

ELSE

IF current QPP Withheld = 0.00 and

current QPP2 withheld = 0.00

F5A = 0.00

ELSE

F5A = (current QPP Withheld * (1-

(current QPP Supp withheld) /
current QPP Withheld)) * QPP first
enhancement rate / QPP
contribution rate) + (current QPP2
Withheld * (1- (current QPP2
Supplemental withheld / current
QPP2 Withheld)))

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)

2d Calculate PTD U1 U1 = PTD U1 + current U1 U1

28 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

2e Subtract pay period deductions I-F-F2-F5A-F5APTD-U1 Adjusted

from current gross current gross
income.

2f Calculate Federal/Provincial tax IF Tax Card/Federal tax rate > 0 T

if federal Tax Card/Federal tax T = ((current I – current F – F5A - current
rate field is populated U1) * Tax Card/Federal tax rate) + L
IF T < L
T=L
ENDIF

Exit regular tax calculation

ENDIF
2g Multiply by number of pay P * Adjusted current gross income Adjusted
periods in the year annual gross
income
2h Determine F1 factor IF F1 exists F1
F1=F1 (Annualized
ELSE deductions)
F1=0.00
ENDIF
2i Subtract annual deductions A=Adjusted annual gross income-HD-F1 A (Annual
taxable
If A is negative income)
T=L
Exit tax calculation
Endif

If A is negative, (fed/prov tax = additional pay

period tax requested by employee on TD1 form)
3 Calculate (T3): basic federal tax
3a Calculate K1 factor IF Federal Tax Card total claim amount <> Federal
Basic Personal Amount
K1 = Federal tax card total claim amount *
lowest federal tax rate (R)
ELSE
NI = A + HD

Find appropriate row in “Basic Personal

Amount thresholds and amounts table
based on Jurisdiction

IF NI <= Low Threshold

K1 = High BPA * lowest federal
tax rate
ELSE
K1 is the greater of:

lowest federal tax rate (R) * (High

BPA – ((NI – Low Threshold) *

29 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

((High BPA-Low BPA)/(High

Threshold – Low Threshold))))

lowest federal tax rate (R) * (High

BPA – ((High Threshold – Low
Threshold) * ((High BPA-Low
BPA)/(High Threshold – Low
Threshold))))

ENDIF
ENDIF

3b Calculate CPP portion of K2 If POE <> QC CPP portion

IF (YTD QPP contribution * CPP rate / QPP of K2
rate) + YTD CPP contribution + current
CPP contribution >= Annual maximum Regular tax
CPP contribution * PM / 12 calc
• CPP portion of K2 = lowest federal tax
rate (R) * Annual maximum CPP K2 is based
contribution * CPP base rate / CPP on CPP from
contribution rate * PM / 12 Reg earnings
ELSEIF only in this
(Regular tax calc OR Regular Pay period
bonus calc) AND
(Current CPP withheld = 0.00 and Regular
PTD CPP withheld = 0.00) then bonus, tax
CPP portion of K2 = 0.00 calc 1 with
current pay
The second IF above will assign period
CPP portion of K2 when no CPP is regular,
deducted due to employee having current
contributed the maximum for the supplementa
year. This ELSEIF avoids a divide l and YTD
by zero when no current or PTD supplementa
CPP is deducted (e.g. CPT30, less l
than 18, etc)
ELSEIf Regular Tax Calculation K2 is based
on CPP from
CPP portion of K2 = lowest federal Reg earnings
tax rate (R) * the lesser of: only in this
(Annual maximum CPP Pay period
contribution * CPP base rate / PLUS CPP
CPP contribution rate * PM / 12) - from current
(YTD QPP contribution * CPP supplementa
base rate / QPP contribution rate) l PLUS CPP
+ (YTD QPP contribution * QPP from YTD
base rate / QPP contribution rate) supplementa
l
And
Regular
bonus tax
30 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0
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Federal / Provincial Regular taxation formula

Step Description Logic Result

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

CPP portion of K2 = lowest federal tax rate

(R) * the lesser of:

(Annual maximum CPP contribution * CPP

base rate / CPP contribution rate* PM /
12) - (YTD QPP contribution * CPP base
rate / QPP contribution rate) + (YTD QPP
contribution * QPP base rate / QPP
contribution rate)
And

• ((PTD CPP withheld + current CPP

Withheld)
• * (1- ((PTD CPP Supp Withheld +
current CPP Supp withheld) / (PTD
CPP Withheld + current CPP
Withheld))
• * P)
• + current CPP Supp withheld
• + YTD CPP Supp withheld)
• * CPP base rate / CPP contribution
rate

Tax calc 2

CPP portion of K2 = lowest federal tax rate

(R) * the lesser of:

(Annual maximum CPP contribution * CPP

base rate / CPP contribution rate* PM /
12) - (YTD QPP contribution * CPP base
rate / QPP contribution rate) + (YTD QPP
contribution * QPP base rate / QPP
contribution rate)

And

31 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

• ((PTD CPP withheld + current CPP

Withheld)
• * (1- ((PTD CPP Supp Withheld +
current CPP Supp withheld) / (PTD
CPP Withheld + current CPP
Withheld))
• * P)
• + YTD CPP Supp withheld)
• * CPP base rate / CPP contribution rate

ELSEIF YTD Bonus tax calc

Tax calc 1

CPP portion of K2 = lowest federal tax rate

(R) * the lesser of:
(Annual maximum CPP
contribution* CPP base rate / CPP
contribution rate* PM / 12) -
(YTD QPP contribution * CPP
base rate / QPP contribution rate)
+ (YTD QPP contribution * QPP
base rate / QPP contribution rate)
And

• ((CPP YTD - PTD CPP withheld)

• + (((PTD CPP withheld - CPP PTD
Supp withheld) + (current CPP
withheld - Current CPP Supp
withheld)) * PR)
• + CPP Supp withheld
• + PTD CPP supp withheld)
• * CPP base rate / CPP contribution
rate

Tax calc 2

CPP portion of K2 = lowest federal tax rate

(R) * the lesser of:

(Annual maximum CPP contribution* CPP

base rate / CPP contribution rate* PM /
12) - (YTD QPP contribution * CPP base
rate / QPP contribution rate) + (YTD QPP
contribution * QPP base rate / QPP
contribution rate)

And

• ((CPP YTD - PTD CPP withheld)

32 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

• + (((PTD CPP withheld - CPP PTD

Supp withheld) + (current CPP
withheld - Current CPP Supp
withheld)) * PR)
• + PTD CPP supp withheld)
• * CPP base rate / CPP contribution
rate

ELSEIF Commission tax calc

CPP portion of K2 = lowest federal

tax rate (R) * the lesser of:

• (Annual maximum CPP contribution *

CPP base rate / CPP contribution
rate* PM / 12) - (YTD QPP
contribution * CPP base rate / QPP
contribution rate) + (YTD QPP
contribution * QPP base rate / QPP
contribution rate)

And

• (CPP base Rate * (I1 – CPP annual

basic exemption)

If the result is negative, enter 0.00

ELSE

CPP portion of K2 = 0.00

ENDIF

Else (POE = QC)

CPP portion of K2 = 0.00
Endif

IF CPP portion of K2 < 0.00

CPP portion of K2 = 0.00
ENDIF

3c Calculate EI portion of K2 If POE <> QC EI portion of

K2
IF (YTD Quebec EI premium * Federal EI
rate / Quebec EI rate) + YTD Federal EI
premium + current EI premium >= Annual
maximum Federal EI premium
• EI portion of K2 = lowest federal
tax rate (R) * Annual maximum
Federal EI Premium

33 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

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

The second IF above will assign EI

portion of K2 when no EI is
deducted due to employee having
contributed the maximum for the
year. This ELSEIF avoids a divide
by zero when no current or PTD EI
is deducted (e.g. no EI insurable
earnings in current pay)

ELSEIf Regular Tax Calculation

EI portion of K2 = lowest federal tax rate

(R) * the lesser of:
Annual maximum federal EI
premium
And

• ((PTD EI withheld + current EI Withheld)

• * (1- ((PTD EI Supp Withheld + current EI
Supp withheld) / (PTD EI Withheld +
current EI Withheld)))
• * P)

ELSEIF Regular Bonus

Tax calc 1

EI portion of K2 = lowest federal tax rate

(R) * the lesser of:
Annual maximum federal EI
Premium
And

• ((PTD EI withheld + current EI

Withheld)
• * (1- ((PTD EI Supp Withheld + current
EI Supp withheld) / (PTD EI Withheld
+ current EI Withheld))
• * P)
• + current EI Supp withheld
• + YTD EI Supp withheld)

Tax calc 2

34 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

EI portion of K2 = lowest federal tax rate

(R) * the lesser of:
Annual maximum federal EI
Premium
And

• ((PTD EI withheld + current EI

Withheld)
• * (1- ((PTD EI Supp Withheld + current
EI Supp withheld) / (PTD EI Withheld
+ current EI Withheld))
• * P)
• + YTD EI Supp withheld)

ELSEIF YTD Bonus tax calc

Tax calc 1

EI portion of K2 = lowest federal tax rate

(R) * the lesser of:
Annual maximum federal EI
Premium
And

• ((EI YTD - PTD EI withheld)

• + (((PTD EI withheld - EI PTD Supp
withheld) + (current EI withheld -
Current EI Supp withheld)) * PR)
• + EI Supp withheld
• + PTD EI supp withheld)

Tax calc 2

EI portion of K2 = lowest federal tax rate

(R) * the lesser of:
Annual maximum federal EI
Premium
And

• ((EI YTD - PTD EI withheld)

• + (((PTD EI withheld - EI PTD Supp
withheld) + (current EI withheld -
Current EI Supp withheld)) * PR)
• + PTD EI supp withheld)

ELSEIF Commission tax calc

EI portion of K2 = lowest federal tax rate
(R) * the lesser of:

• Annual maximum Federal EI Premium

35 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

And

• Federal EI Rate * I1

ELSE
EI portion of K2 = 0.00
ENDIF

Else (POE = QC)

EI portion of K2= 0.00
Endif

IF EI portion of K2 < 0.00

EI portion of K2 = 0.00
ENDIF

3d Calculate K2 K2 = CPP portion of K2 + EI portion of K2 K2

3e Calculate QPP portion of K2Q If POE = QC QPP portion
of K2Q
IF (YTD CPP contribution * QPP rate / CPP
rate) + YTD QPP contribution + current
QPP contribution >= Annual maximum
QPP contribution * PM / 12
• QPP portion of K2Q = lowest federal
tax rate (R) * Annual maximum QPP
contribution* QPP base rate / QPP
contribution rate * PM / 12

ELSEIF

(Regular tax calc OR Regular

bonus calc) AND
(Current QPP withheld = 0.00 and
PTD QPP withheld = 0.00) then
QPP portion of K2Q = 0.00

The second IF above will assign

QPP portion of K2Q when no QPP
is deducted due to employee
having contributed the maximum
for the year. This ELSEIF avoids a
divide by zero when no current or
PTD QPP is deducted (e.g., less
than 18, etc)

ELSEIf Regular Tax Calculation

QPP portion of K2Q = lowest

federal tax rate (R) * the lesser of:

36 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

(Annual maximum QPP

contribution* QPP base rate /
QPP contribution rate * PM / 12)
- (YTD CPP contribution * QPP
base rate / CPP contribution rate)
+ (YTD CPP contribution * CPP
base rate / CPP contribution rate)

And

((PTD QPP withheld + current

QPP Withheld) * (1- ((PTD QPP
Supp Withheld + current QPP
Supp withheld) / (PTD QPP
Withheld + current QPP
Withheld))) * P) * QPP base rate /
QPP contribution rate

ELSEIF Regular Bonus

Tax calc 1

QPP portion of K2Q = lowest federal tax

rate (R) * the lesser of:
(Annual maximum QPP
contribution* QPP base rate /
QPP contribution rate * PM / 12)
- (YTD CPP contribution * QPP
base rate / CPP contribution rate)
+ (YTD CPP contribution * CPP
base rate / CPP contribution rate)
And

• ((PTD QPP withheld + current QPP

Withheld)
• * (1- ((PTD QPP Supp Withheld +
current QPP Supp withheld) / (PTD
QPP Withheld + current QPP
Withheld))
• * P)
• + current QPP Supp withheld
• + YTD QPP Supp withheld)
• * QPP base rate / QPP contribution
rate

Tax calc 2

QPP portion of K2Q = lowest federal tax

rate (R) * the lesser of:
(Annual maximum QPP
contribution* QPP base rate /
QPP contribution rate * PM / 12)
37 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0
Copyright © 2023, Oracle and/or its affiliates / Public
Federal / Provincial Regular taxation formula

Step Description Logic Result

- (YTD CPP contribution * QPP

base rate / CPP contribution rate)
+ (YTD CPP contribution * CPP
base rate / CPP contribution rate)
And

• ((PTD QPP withheld + current QPP

Withheld)
• * (1- ((PTD QPP Supp Withheld +
current QPP Supp withheld) / (PTD
QPP Withheld + current QPP
Withheld))
• * P)
• + YTD QPP Supp withheld)
• * QPP base rate / QPP contribution
rate

ELSEIF YTD Bonus tax calc

Tax calc 1

QPP portion of K2Q = lowest federal tax

• ((QPP YTD - PTD QPP withheld)

• + (((PTD QPP withheld - QPP PTD
Supp withheld) + (current QPP
withheld - Current QPP Supp
withheld)) * PR)
• + QPP Supp withheld
• + PTD QPP supp withheld)
• * QPP base rate / QPP contribution
rate

Tax calc 2

QPP portion of K2Q = lowest federal tax

rate (R) * the lesser of:
(Annual maximum QPP
contribution* QPP base rate /
QPP contribution rate * PM / 12)
- (YTD CPP contribution * QPP
base rate / CPP contribution rate)

38 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

+ (YTD CPP contribution * CPP

base rate / CPP contribution rate)
And

• ((QPP YTD - PTD QPP withheld)

• + (((PTD QPP withheld - QPP PTD
Supp withheld) + (current QPP
withheld - Current QPP Supp
withheld)) * PR)
• + PTD QPP supp withheld)
• * QPP base rate / QPP contribution
rate

ELSEIF Commission tax calc

QPP portion of K2Q = lowest federal tax

rate (R) * the lesser of:

• Annual maximum QPP contribution*

QPP base rate / QPP contribution rate
* PM / 12 - (YTD CPP contribution *
QPP base rate / CPP contribution rate)
+ (YTD CPP contribution * CPP base
rate / CPP contribution rate)
•
And

• (QPP base Rate * (I1 – QPP annual

basic exemption)

If the result is negative, enter 0.00

ELSE
QPP portion of K2Q = 0.00

ENDIF

Else (POE <> QC)

QPP portion of K2Q = 0.00
Endif

IF QPP portion of K2Q < 0.00

QPP portion of K2Q = 0.00
ENDIF

3f Calculate EI portion of K2Q If POE = QC EI portion of

K2Q
IF (YTD Federal EI premium * Quebec EI
rate / Federal EI rate) + YTD Quebec EI
premium + current EI premium >= Annual
maximum Quebec EI premium

39 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

• EI portion of K2Q = lowest federal

tax rate (R) * Annual maximum
Quebec EI Premium

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

The second IF above will assign EI

portion of K2Q when no EI is
deducted due to employee having
contributed the maximum for the
year. This ELSEIF avoids a divide
by zero when no current or PTD EI
is deducted (e.g. no EI insurable
earnings in current pay)

ELSEIf Regular Tax Calculation

EI portion of K2Q = lowest federal tax rate

(R) * the lesser of:
Annual maximum Quebec EI
premium
And

• ((PTD EI withheld + current EI Withheld)

• * (1- ((PTD EI Supp Withheld + current EI
Supp withheld) / (PTD EI Withheld +
current EI Withheld)))
• * P)

ELSEIF Regular Bonus

Tax calc 1

EI portion of K2Q = lowest federal tax rate

(R) * the lesser of:
Annual maximum Quebec EI
premium
And

• ((PTD EI withheld + current EI

Withheld)
• * (1- ((PTD EI Supp Withheld + current
EI Supp withheld) / (PTD EI Withheld
+ current EI Withheld))
• * P)
• + current EI Supp withheld

40 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

• + YTD EI Supp withheld)

Tax calc 2

EI portion of K2Q = lowest federal tax rate

(R) * the lesser of:
Annual maximum Quebec EI
premium

And

• ((PTD EI withheld + current EI

Withheld)
• * (1- ((PTD EI Supp Withheld + current
EI Supp withheld) / (PTD EI Withheld
+ current EI Withheld))
• * P)
• + YTD EI Supp withheld)

ELSEIF YTD Bonus tax calc

Tax calc 1

EI portion of K2Q = lowest federal tax rate

(R) * the lesser of:
Annual maximum Quebec EI
premium
And

• ((EI YTD - PTD EI withheld)

• + (((PTD EI withheld - EI PTD Supp
withheld) + (current EI withheld -
Current EI Supp withheld)) * PR)
• + EI Supp withheld
• + PTD EI supp withheld)

Tax calc 2

EI portion of K2Q = lowest federal tax rate

(R) * the lesser of:
Annual maximum Quebec EI
premium
And

• ((EI YTD - PTD EI withheld)

• + (((PTD EI withheld - EI PTD Supp
withheld) + (current EI withheld -
Current EI Supp withheld)) * PR)
• + PTD EI supp withheld)

41 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

ELSEIF Commission tax calc

EI portion of K2Q = lowest federal tax rate
(R) * the lesser of:

• Annual maximum Quebec EI Premium

And
• Quebec EI Rate * I1

ELSE
EI portion of K2Q = 0.00
ENDIF

Else
EI portion of K2Q = 0.00 (POE <> QC)
Endif

IF EI portion of K2Q < 0.00

EI portion of K2Q = 0.00
ENDIF

3g Calculate QPIP portion of K2Q If POE = QC QPIP portion

of K2Q
IF YTD QPIP premium + current QPIP
premium >= Annual maximum QPIP
premium
• QPIP portion of K2Q = lowest
federal tax rate (R) * Annual
maximum QPIP Premium

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

The second IF above will assign

QPIP portion of K2Q when no
QPIP is deducted due to employee
having contributed the maximum
for the year. This ELSEIF avoids a
divide by zero when no current or
PTD QPIP is deducted

ELSEIf Regular Tax Calculation

QPIP portion of K2Q = lowest federal tax

rate (R) * the lesser of:
Annual maximum QPIP premium
And

42 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

• ((PTD QPIP withheld + current QPIP

Withheld)
• * (1- ((PTD QPIP Supp Withheld + current
QPIP Supp withheld) / (PTD QPIP
Withheld + current QPIP Withheld)))
• * P)

ELSEIF Regular Bonus

Tax calc 1

QPIP portion of K2Q = lowest federal tax

rate (R) * the lesser of:
Annual maximum QPIP premium
And

• ((PTD QPIP withheld + current QPIP

Withheld)
• * (1- ((PTD QPIP Supp Withheld +
current QPIP Supp withheld) / (PTD
QPIP Withheld + current QPIP
Withheld))
• * P)
• + current QPIP Supp withheld
• + YTD QPIP Supp withheld)

Tax calc 2

QPIP portion of K2Q = lowest federal tax

rate (R) * the lesser of:
Annual maximum QPIP premium

And

• ((PTD QPIP withheld + current QPIP

Withheld)
• * (1- ((PTD QPIP Supp Withheld +
current QPIP Supp withheld) / (PTD
QPIP Withheld + current QPIP
Withheld))
• * P)
• + YTD QPIP Supp withheld)

ELSEIF YTD Bonus tax calc

Tax calc 1

QPIP portion of K2Q = lowest federal tax

rate (R) * the lesser of:
43 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0
Copyright © 2023, Oracle and/or its affiliates / Public
Federal / Provincial Regular taxation formula

Step Description Logic Result

Annual maximum QPIP premium

And

• ((QPIP YTD - PTD QPIP withheld)

• + (((PTD QPIP withheld - QPIP
PTD Supp withheld) + (current
QPIP withheld - Current QPIP
Supp withheld)) * PR)
• + QPIP Supp withheld
• + PTD QPIP supp withheld)

Tax calc 2

QPIP portion of K2Q = lowest federal tax

rate (R) * the lesser of:
Annual maximum QPIP premium
And

• ((QPIP YTD - PTD QPIP withheld)

• + (((PTD QPIP withheld - QPIP
PTD Supp withheld) + (current
QPIP withheld - Current QPIP
Supp withheld)) * PR)
• + PTD QPIP supp withheld)

ELSEIF Commission tax calc

QPIP portion of K2Q = lowest federal
tax rate (R) * the lesser of:

• Annual maximum QPIP Premium

And

• QPIP Rate * I1

ELSE
QPIP portion of K2Q = 0.00
ENDIF

Else
QPIP portion of K2Q = 0.00 (POE <> QC)
Endif

IF QPIP portion of K2Q < 0.00

QPIP portion of K2Q = 0.00
ENDIF

3h Calculate K2Q K2Q = QPP portion of K2Q + EI portion of K2Q + K2Q

QPIP portion of K2Q
44 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0
Copyright © 2023, Oracle and/or its affiliates / Public
Federal / Provincial Regular taxation formula

Step Description Logic Result

3i Determine K3 factor IF K3 exists K3 (Other

K3=K3 federal non-
ELSE refundable
K3=0.00 tax credits)
ENDIF
3j Determine K4 factor If earnings type is T4/RL1 K4 (Canada
K4 = Lesser of: Employment
(A * lowest federal tax rate (R)) amount
OR factor)
(CEA * lowest federal tax rate (R))
ELSE
K4 = 0.00
ENDIF
3k Calculate T3: Annual Basic T3 = (R * A) – K - K1 – K2 – K2Q – K3 – K4 T3 annual
federal tax If the result is negative, T3 = 0.00 basic federal
tax
4 Calculate (T1): annual federal tax payable
4a Calculate LCF LCF = the lesser of: LCF (Labour
Federal LCP amount sponsored
OR fund)
Federal LCP rate * the amount deducted or
withheld for the acquisition of approved shares
4b Calculate T1: annual federal tax If POE = QC T1
payable T1 = (T3 – LCF)* - (QC abatement
* T3)*
Elseif POE = ZZ or US
T1 = (T3 + (Outside Canada surtax * T3) –
LCF)*
Else
T1 = T3 - LCF*
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

45 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

amounts table based on

Jurisdiction

IF A <= Low Threshold

K1P = High BPA * lowest
NS Provincial tax rate (V)
ELSE
K1P is the greater of:

the lowest NS Provincial

tax rate (V) * (High BPA –
((A – Low Threshold) *
BPA Percent))

the lowest NS Provincial

tax rate (V) * (High BPA –
((High Threshold – Low
Threshold) * BPA
Percent))
ENDIF

ELSEIF POE = YT

IF Regional Tax Card total claim amount

<> Yukon Basic Personal Amount
K1P = Regional tax card total
claim amount * lowest Yukon tax
rate (V)
ELSE
NI = A + HD

Find appropriate row in “Basic

Personal Amount thresholds and
amounts table based on
Jurisdiction

IF NI <= Low Threshold

K1P = High BPA * lowest
Yukon tax rate (V)
ELSE
K1P is the greater of:

the lowest Yukon tax rate

(V) * (High BPA – ((NI –
Low Threshold) * ((High
BPA-Low BPA)/(High
Threshold – Low
Threshold))))

46 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

the lowest Yukon tax rate

(V) * (High BPA – ((High
Threshold – Low
Threshold) * ((High BPA-
Low BPA)/(High
Threshold – Low
Threshold))))

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

The second IF above will assign CPP

portion of K2P when no CPP is deducted
due to employee having contributed the
maximum for the year. This ELSEIF avoids
a divide by zero when no current or PTD
CPP is deducted (e.g. CPT30, under 18
years old, etc.)

ELSEIf Regular Tax Calculation or Commission tax

calc

CPP portion of K2P = lowest provincial/territorial

tax rate (V) * CPP base rate / CPP contribution rate
* the lesser of:

Annual maximum CPP contribution * PM /

12 - (YTD QPP contribution * CPP base
rate / QPP contribution rate) + (YTD QPP
contribution * QPP base rate / QPP
contribution rate)

47 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

And

• ((PTD CPP withheld + current CPP Withheld)

• * (1- ((PTD CPP Supp Withheld + current CPP Supp
withheld) / (PTD CPP Withheld + current CPP
Withheld)))
• * P)

ELSEIF Regular Bonus

Tax calc 1

CPP portion of K2P = lowest provincial/territorial

tax rate (V) * CPP base rate / CPP contribution rate
* the lesser of:

Annual maximum CPP contribution * PM /

12- (YTD QPP contribution * CPP base
rate / QPP contribution rate) + (YTD QPP
contribution * QPP base rate / QPP
contribution rate)

And

• ((PTD CPP withheld + current CPP Withheld)

• * (1- ((PTD CPP Supp Withheld + current CPP
Supp withheld) / (PTD CPP Withheld + current
CPP Withheld))
• * P)
• + current CPP Supp withheld
• + YTD CPP Supp withheld)

Tax calc 2

CPP portion of K2P = lowest provincial/territorial

tax rate (V) * CPP base rate / CPP contribution rate
* the lesser of:

Annual maximum CPP contribution * PM /

12 - (YTD QPP contribution * CPP base
rate / QPP contribution rate) + (YTD QPP
contribution * QPP base rate / QPP
contribution rate)

And

• ((PTD CPP withheld + current CPP Withheld)

• * (1- ((PTD CPP Supp Withheld + current CPP
Supp withheld) / (PTD CPP Withheld + current
CPP Withheld))
• * P)

48 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

• + YTD CPP Supp withheld)

ELSEIF YTD Bonus tax calc

Tax calc 1

CPP portion of K2P = lowest provincial/territorial

tax rate (V) * CPP base rate / CPP contribution rate
* the lesser of:

Annual maximum CPP contribution * PM /

12 - (YTD QPP contribution * CPP base
rate / QPP contribution rate) + (YTD QPP
contribution * QPP base rate / QPP
contribution rate)
And

• ((CPP YTD - PTD CPP withheld)

• + (((PTD CPP withheld - CPP PTD Supp
withheld) + (current CPP withheld - Current
CPP Supp withheld)) * PR)
• + CPP Supp withheld
• + PTD CPP supp withheld)

Tax calc 2

CPP portion of K2P = lowest provincial/territorial

tax rate (V) * CPP base rate / CPP contribution rate
* the lesser of:

Annual maximum CPP contribution * PM /

12 - (YTD QPP contribution * CPP base
rate / QPP contribution rate) + (YTD QPP
contribution * QPP base rate / QPP
contribution rate)

And

• ((CPP YTD - PTD CPP withheld)

• + (((PTD CPP withheld - CPP PTD Supp
withheld) + (current CPP withheld - Current
CPP Supp withheld)) * PR)
• + PTD CPP supp withheld)

ELSE

CPP portion of K2P = 0.00

ENDIF

IF CPP portion of K2P < 0.00

CPP portion of K2P = 0.00
49 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0
Copyright © 2023, Oracle and/or its affiliates / Public
Federal / Provincial Regular taxation formula

Step Description Logic Result

ENDIF

5d Calculate EI portion of K2P IF (YTD Quebec EI premium * Federal EI rate / EI portion of

Quebec EI rate) + YTD Federal EI premium + K2P
current EI premium >= Annual maximum Federal
EI premium
• EI portion of K2P = lowest
provincial/territorial tax rate (V) * Annual
maximum Federal EI Premium

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

The second IF above will assign EI portion

of K2P when no EI is deducted due to
employee having contributed the
maximum for the year. This ELSEIF avoids
a divide by zero when no current or PTD EI
is deducted (e.g. no EI insurable earnings
in current pay)

ELSEIf Regular Tax Calculation or Commission tax

calc

EI portion of K2P = lowest

provincial/territorial tax rate (V) * the
lesser of:

Annual maximum federal EI

premium
And

• ((PTD EI withheld + current EI

Withheld)
• * (1- ((PTD EI Supp Withheld +
current EI Supp withheld) / (PTD
EI Withheld + current EI
Withheld)))
• * P)

ELSEIF Regular Bonus

Tax calc 1

EI portion of K2P = lowest

provincial/territorial tax rate (V) * the
lesser of:

50 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

Annual maximum federal EI

Premium

And

• ((PTD EI withheld + current EI

Withheld)
• * (1- ((PTD EI Supp Withheld + current
EI Supp withheld) / (PTD EI Withheld
+ current EI Withheld))
• * P)
• + current EI Supp withheld
• + YTD EI Supp withheld)

Tax calc 2

EI portion of K2P = lowest

provincial/territorial tax rate (V) * the
lesser of:

Annual maximum federal EI

Premium
And

• ((PTD EI withheld + current EI

Withheld)
• * (1- ((PTD EI Supp Withheld + current
EI Supp withheld) / (PTD EI Withheld
+ current EI Withheld))
• * P)
• + YTD EI Supp withheld)

ELSEIF YTD Bonus tax calc

Tax calc 1

EI portion of K2P = lowest

provincial/territorial tax rate (V) * the
lesser of:

Annual maximum federal EI

Premium
And

• ((EI YTD - PTD EI withheld)

• + (((PTD EI withheld - EI PTD Supp
withheld) + (current EI withheld -
Current EI Supp withheld)) * PR)
• + EI Supp withheld

51 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

• + PTD EI supp withheld)

Tax calc 2

EI portion of K2P = lowest

provincial/territorial tax rate (V) * the
lesser of:
Annual maximum federal EI
Premium
And

• ((EI YTD - PTD EI withheld)

• + (((PTD EI withheld - EI PTD Supp
withheld) + (current EI withheld -
Current EI Supp withheld)) * PR)
• + PTD EI supp withheld)

ELSE
EI portion of K2P = 0.00
ENDIF

IF EI portion of K2P < 0.00

EI portion of K2P = 0.00
ENDIF

5e Calculate K2P K2P = CPP portion of K2P + EI portion of K2P K2P

5f Calculate K3P K3P = K3P K3P
5g Calculate K4P If POE = YT K4P
K4P = lesser of
Lowest YT tax rate (V) * A
and
Lowest YT tax rate (V) * CEA
Else
K4P = 0.00
Endif

5h Determine annual basic T4 = (V * A) – KP – K1P – K2P – K3P – K4P T4

provincial or territorial tax (T4)
If the result is negative, T4 = 0.00
6 Calculate (T2): annual provincial or territorial tax deduction
6a Calculate Y If POE = ON Y
Y = (Ontario Y factor * number of disabled
dependents on TD1ON) + (Ontario Y
factor * number of dependents under age
19 for which employee has made a written
or electronic request)
Else
Y = 0.00
Endif

52 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

6b Calculate V1 If POE = ON V1
Find appropriate row in V1 table based on
T4

V1= V1 rate 1 * (T4 – V1 constant 1) + V1

rate 2 * (T4 – V1 constant 2)

Elseif POE = PE
Find appropriate row in V1 table based on
T4

V1= V1 rate 1 * (T4 – V1 constant 1)

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)

If result is negative, S=0.00

Elseif POE = ON
Find appropriate row in S table based on A

S is the lesser of:

T4 + V1
AND
(S rate * (S2 constant + Y)) – (T4 +
V1)
If the result is negative, S=0.00
Else
S = 0.00
Endif
6e Calculate LCP Find appropriate row in the “Other Federal and LCP
Provincial Rates and Amounts” table based on POE
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Federal / Provincial Regular taxation formula

Step Description Logic Result

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

Exit tax calculation

ENDIF

I1: TD1X – estimated annual income

G: income in current payment
7a Calculate full pay period taxes Full pay period taxes = ((T1 + T2) / P) + L Full pay
period taxes
7b Calculate current payment taxes T = Full pay period taxes – ((PTD Reg+Supp taxes) T
- (PTD Supp taxes))

54 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

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Federal/Provincial Regular Bonus taxation formula
The regular bonus taxation formula below represents a subset of the entire tax calculation. The remainder of the
tax formula required is included in the Regular Tax formula and is called by this logic.

Regular Bonus taxation formula

Step Description Logic Result

1 Check for Eligibility

1a Check for Federal payroll tax IF Employee is
eligibility and for Indian Status • ‘Federal Tax Exempt’ flag is checked on not eligible
the Federal Tax Calculation card OR
• Indian Exempt status is checked on any
active Assignment
THEN
Exit tax calculation
ENDIF
2 Check for Tax Card / federal tax amount or rate override
2a If Federal Tax Card/Federal tax If T
amount is populated and there Federal Tax card/Federal tax amount >
are only current supplemental 0.00
earnings, the federal tax amount AND
represents the tax on current regular earnings = 0.00 AND
supplemental. current supplemental earnings > 0.00
THEN
T = Federal Tax Card/Federal tax amount
+L
Exit bonus tax calculation
ENDIF
3 Calculate (A): Annual Taxable income for Regular Bonus tax calculation including current non-
periodic payment
Calculate F5A If POE <> QC

IF current CPP Withheld = 0.00 and

current CPP2 Withheld = 0.00

F5A = 0.00

ELSE

F5A = (current CPP Withheld * (1-

(current CPP Supp withheld /
current CPP Withheld)) * CPP first
enhancement rate / CPP

55 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

contribution rate) + (current CPP2

Withheld * (1- (current CPP2
Supplemental withheld / current
CPP2 Withheld)))

ENDIF

ELSE

IF current QPP Withheld = 0.00 and

current QPP2 Withheld = 0.00

F5A = 0.00

ELSE

F5A = (current QPP Withheld * (1-

(current QPP Supp withheld /
current QPP Withheld)) * QPP first
enhancement rate / QPP
contribution rate) + (current QPP2
Withheld * (1- (current QPP2
Supplemental withheld / current
QPP2 Withheld)))

ENDIF

ENDIF
Calculate F5B IF POE <> QC F5B

IF current CPP Withheld = 0.00 and

current CPP2 Withheld = 0.00

F5B = 0.00

ELSE

F5B = (current CPP Withheld *

(current CPP Supp withheld /
current CPP Withheld) * CPP first
enhancement rate / CPP
contribution rate) + (current CPP2
Withheld * (current CPP2
Supplemental withheld / current
CPP2 Withheld))

ENDIF

ELSE

56 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

IF current QPP Withheld = 0.00 and

current QPP2 = 0.00

F5B = 0.00

ELSE

(F5B = current QPP Withheld *

(current QPP Supp withheld /
current QPP Withheld) * QPP first
enhancement rate / QPP
contribution rate) + (current QPP2
Withheld * (current QPP2
Supplemental withheld / current
QPP2 Withheld))

ENDIF

3c Calculate PTD U1 U1 = PTD U1 + current U1 U1

3d Subtract pay period deductions I-F-F2-F5A–PTDF5A-U1 Adjusted

from current gross current gross
income
3e Multiply by number of pay P * Adjusted current gross income Adjusted
periods in the year annual gross
income
3f Determine F1 factor IF F1 exists F1
F1=F1 (Annualized
ELSE deductions)
F1=0.00
ENDIF

57 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

3g Subtract annual deductions A=Adjusted annual gross income-HD-F1 A (Annual

taxable
If A is negative income)
A=$0
3h Calculate current bonus less current net bonus = current non-periodic – current Current net
RRSP, RPP, etc. RRSP on non-periodic – F5B bonus

Note: If result is less than zero, set result to zero

3i Calculate YTD bonus less YTD YTD net bonus = YTD non-periodic - YTD RRSP on YTD net
RRSP, RPP, etc non-periodic – YTD F5B bonus

Note: If result is less than zero, set result to zero

3j factor A A = A + Current net bonus + YTD net bonus A (Annual
taxable
income)
3k Determine tax based on current If A <= 5,000.00 Tax on
and YTD bonus If POE = QC annual
T = Current net bonus * 0.10 + L taxable
Else income with
T = Current net bonus * 0.15 + L current and
Endif YTD non-
Exit regular bonus taxation formula periodic
ELSE payment
• Call regular taxation formula, starting
at Step 3 (In K2, K2Q and K2P logic,
use sections for regular bonus, tax
calc 1)
• Tax on annual taxable income with
current and YTD non-periodic
payment = result from the called tax
logic
ENDIF
4 Calculate (A): Annual Taxable income for Regular Bonus calculation without current non-periodic
payment.
4a Calculate full period gross I = PTD I + current I I
remuneration (I)
This
calculation is
used for PTD
tax
calculation
4b Calculate full period payroll F = PTD F + current F F
deductions (F)

4c Calculate PTD U1 U1 = PTD U1 + current U1 U1

4d Subtract pay period deductions I-F-F2-F5A-PTDF5A-U1 Adjusted

from current gross current gross
income
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Regular Bonus taxation formula

Step Description Logic Result

4e Multiply by number of pay P * Adjusted current gross income Adjusted

periods in the year annual gross
income
4f Determine F1 factor IF F1 exists F1
F1=F1 (Annualized
ELSE deductions)
F1=0.00
ENDIF
4g Subtract annual deductions A=Adjusted annual gross income-HD-F1 A (Annual
taxable
If A is negative income)
A=$0
4h Calculate YTD bonus less YTD YTD net bonus = YTD non-periodic – YTD RRSP on YTD net
RRSP, RPP, etc non-periodic– YTD F5B bonus

Note: result cannot be negative after deducting

CPP and EI
4i factor A A = A + YTD net bonus A (Annual
taxable
income)
4j Determine tax based on YTD Call regular taxation formula, starting at Step 3 (In Tax on
bonus K2, K2Q and K2P logic, use sections for regular annual
bonus, tax calc 2) taxable
income with
Tax on annual taxable income with YTD non- YTD non-
periodic payment = result from the called tax logic periodic
ENDIF payment
5 Determine results of regular bonus calculation
5a Determine result of regular TB = TB (Tax
bonus tax formula Tax on annual taxable income with current and calculation
YTD non-periodic payment result)
-
Tax on annual taxable income with YTD non-
periodic payment

Federal/Provincial Year-to-date Bonus taxation formula

The YTD bonus taxation formula below represents a subset of the entire tax calculation. The remainder of the tax
formula required is included in the Regular Tax formula and is called by this logic.

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)

Table 12. YTD Bonus taxation formula

YTD Bonus taxation formula

Step Description Logic Result

1 Check for Eligibility

1a Check for Federal payroll tax IF Employee is
eligibility and for Indian Status • ‘Federal Tax Exempt’ flag is checked on not eligible
the Federal Tax Calculation card OR
• Indian Exempt status is checked on any
active Assignment
THEN
Exit tax calculation
ENDIF
2 Check for Tax Card / federal tax amount or rate override
2a If Federal Tax Card/Federal tax If T
amount is populated and there Federal Tax card/Federal tax amount >
are only current supplemental 0.00
earnings, the federal tax amount AND
represents the tax on current regular earnings = 0.00 AND
supplemental. current supplemental earnings > 0.00
THEN
T = Federal Tax Card/Federal tax amount
+L
Exit bonus tax calculation
ENDIF
3 Calculate (A): Annual Taxable income for YTD Bonus tax calculation including current non-
periodic payment
Calculate F5A If POE <> QC F5A

IF current CPP Withheld = 0.00 and

current CPP2 Withheld = 0.00

F5A = 0.00

ELSE

F5A = (current CPP Withheld * (1-

(current CPP Supp withheld /
current CPP Withheld)) * CPP first
enhancement rate / CPP
contribution rate) + (current CPP2
Withheld * (1- (current CPP2
Supplemental withheld / current
CPP2 Withheld)))

ENDIF

ELSE

60 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

IF current QPP Withheld = 0.00 and

current QPP2 Withheld = 0.00

F5A = 0.00

ELSE

F5A = (current QPP Withheld * (1-

(current QPP Supp withheld /
current QPP Withheld)) * QPP first
enhancement rate / QPP
contribution rate) + (current QPP2
Withheld * (1- (current QPP2
Supplemental withheld / current
QPP2 Withheld)))

ENDIF

ENDIF
Calculate F5B IF POE <> QC F5B

IF current CPP Withheld = 0.00 and

current CPP2 Withheld = 0.00

F5B = 0.00

ELSE

F5B = (current CPP Withheld *

(current CPP Supp withheld /
current CPP Withheld) * CPP first
enhancement rate / CPP
contribution rate) + (current CPP2
Withheld * (current CPP2
Supplemental withheld / current
CPP2 Withheld))

ENDIF

ELSE

IF current QPP Withheld = 0.00 and

current QPP2 = 0.00

F5B = 0.00

ELSE

(F5B = current QPP Withheld *

(current QPP Supp withheld /
current QPP Withheld) * QPP first
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YTD Bonus taxation formula

Step Description Logic Result

enhancement rate / QPP

contribution rate) + (current QPP2
Withheld * (current QPP2
Supplemental withheld / current
QPP2 Withheld))

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

3c Calculate remaining annual =PR * Adjusted current gross income Remaining

gross income annual gross
income
3d Determine F1 factor IF F1 exists F1
F1=F1 (Annualized
ELSE deductions)
F1=0.00
ENDIF
3e 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
3f Calculate current bonus less current net bonus = current non-periodic – current Current net
RRSP, RPP, etc. RRSP on non-periodic –F5B bonus

Note: result cannot be negative after deducting

CPP and EI
3g Calculate YTD bonus less YTD YTD net bonus = YTD non-periodic income – YTD YTD net
RRSP, RPP, etc RRSP on non-periodic – YTD F5B bonus

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Step Description Logic Result

Note: result cannot be negative after deducting

CPP and EI
3h factor A A= A
Adjusted YTD gross income
+ Adjusted Remaining Annual Gross Income
+ Current net bonus
+ YTD net bonus
3i Determine tax based on current If A <= 5,000.00 Tax on
and YTD bonus If POE = QC annual
T = Current net bonus * 0.10 + L taxable
Else income with
T = Current net bonus * 0.15 + L current and
Endif YTD non-
Exit regular bonus taxation formula periodic
ELSE payments
• Call regular taxation formula, starting
at Step 3 (In K2, K2Q and K2P logic,
use sections for YTD bonus, tax calc
1)
• Tax on annual taxable income with
current and YTD non-periodic
payments = result from the called tax
logic
ENDIF
4 Calculate (A): Annual Taxable income for YTD Bonus calculation without current non-periodic
payment.
4a 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.
4b Subtract pay period deductions I + IPTD Adjusted
from current gross – F – FPTD current gross
- F2 – F2PTD income
- F5A – F5APTD
- U1 – U1PTD

4c Calculate remaining annual =PR * Adjusted current gross income Remaining

gross income annual gross
income
4d Determine F1 factor IF F1 exists F1
F1=F1 (Annualized
ELSE deductions)
F1=0.00
ENDIF
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YTD Bonus taxation formula

Step Description Logic Result

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

Note: result cannot be negative after deducting

CPP and EI
4g factor A A= A
Adjusted YTD gross income
+ Adjusted Remaining Annual Gross Income
+ YTD net bonus
4h Determine tax based on YTD Call regular taxation formula, starting at Step 3 (In Tax on
bonus K2, K2Q and K2P logic, use sections for YTD annual
bonus, tax calc 2) taxable
• Tax on annual taxable income with income with
YTD non-periodic payment = result YTD non-
from the called tax logic periodic
ENDIF payment
5 Determine results of YTD bonus calculation
5a Determine result of YTD bonus TB = Tax on annual taxable income with current TB (Tax
tax formula and YTD non-periodic payment calculation
– result)
Tax on annual taxable income with YTD non-
periodic payment

Federal/Provincial Commission taxation – Annual Taxable Income formula

64 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Federal / Provincial Commission taxation formula

Step Description Logic Result

1 Calculate (A): Annual Taxable Income

1a Intentionally left blank. This step
has been deleted
Calculate F5 F5 = (current CPP Withheld * CPP first F5
enhancement rate / CPP contribution rate) +
current CPP2 withheld
Calculate F5Q F5Q = (current QPP Withheld * QPP first F5Q
enhancement rate / QPP contribution rate) +
current QPP2 withheld
Calculate T when Tax rate IF Tax Card/Federal tax rate > 0 T
override exists for commission o T = ((current G – current F –F5 –
employee. F5Q – current U1) * Tax
Card/Federal tax rate) + L
o IF T < L
▪ T=L
o ENDIF
o Exit tax calculation
ENDIF

65 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Step Description Logic Result

1b Determine annualized F factor Annualized F = F * P Annualized F

Determine annualized F5 for IF POE <> QC Annualized

commission employee F5Q = 0.00 F5 or
Annualized
F5 = ((CPP first enhancement rate * lesser F5Q
of

(I1: Federal Tax Card-Commission

Remuneration – CPP Basic annual
exemption)
OR
(CPP Yearly maximum pensionable
earnings – CPP basic annual exemption) *
PM/12)

((CPP second enhancement rate * lesser

(I1:Federal Tax Card-Commission

Remuneration – (YMPE* PM/12))
OR
((CPP YAMPE – CPP YMPE) * PM / 12)))

IF the result is negative

F5 = 0.00
ENDIF
ELSE
F5 = 0.00

F5Q = ((QPP first enhancement rate *

lesser of

(I1:Federal Tax Card-Commission

Remuneration – QPP Basic annual
exemption)
OR
(QPP Yearly maximum pensionable
earnings – QPP basic annual exemption) *
PM/12

((QPP second enhancement rate * lesser

(I1:Federal Tax Card-Commission

Remuneration – (YMPE* PM/12))
OR
((QPP YAMPE – QPP YMPE) * PM / 12)))

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Step Description Logic Result

IF the result is negative

F5Q = 0.00
ENDIF
ENDIF

1c Determine annualized U1 factor. Annualized U1 = U1 * P Annualized

U1
1d Determine Annual Taxable A = I1 (Fed Tax Card-Commission Remun.) A
income – Annualized F
– Annualized F5
– Annualized F5Q
– Annualized U1
– HD (Fed tax card-Prescribed Zone Deduction)
– F1 (Fed tax card-Annual Deduction)
– E (Fed tax card-commission expenses)

If A is negative, (fed/prov tax = L (additional pay

period tax requested by employee on TD1 form)
1e Return to Federal / Provincial Regular taxation
formula

Quebec Provincial Income Tax

Rates/Amounts for Quebec Payroll Tax

Table 14. Rates/Amounts for Quebec Payroll Tax

Effective July 1, 2023

Annual Taxable Income (I) Rate (T) Constant (K)

More than Equal to or Less than

0 49,275 14% 0
49,275 98,540 19% 2,463
98,540 119,910 24% 7,390
119,910 - 25.75% 9,489

Effective Jan 1, 2023

Annual Taxable Income (I) Rate (T) Constant (K)

More than Equal to or Less than

0 49,275 15% 0
49,275 98,540 20% 2,463
98,540 119,910 24% 6,405

67 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

More than Equal to or Less than

119,910 - 25.75% 8,503

Effective Jan 1, 2022

Annual Taxable Income (I) Rate (T) Constant (K)

More than Equal to or Less than

0 46,295 15% 0
46,295 92,580 20% 2,314
92,580 112,655 24% 6,017
112,655 - 25.75% 7,989

Effective Jan 1, 2021

Annual Taxable Income (I) Rate (T) Constant (K)

More than Equal to or Less than

0 45,105 15% 0
45,105 90,200 20% 2,255
90,200 109,755 24% 5,863
109,755 - 25.75% 7,783

Other Quebec rates and amounts

Table 15. Other Quebec rates and amounts

Effective July 1, 2023

Basic Personal Low Income rate DEI amount DEI rate Labour fund
amount contribution
limit

QC 17,183 0.07 1,315.00 0.06 5,000.00

Effective Jan 1, 2023

Basic Personal Low Income rate DEI amount DEI rate Labour fund
amount contribution
limit

QC 17,183 0.08 1,315.00 0.06 5,000.00

Effective Jan 1, 2022

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Basic Personal Low Income rate DEI amount DEI rate Labour fund
amount contribution
limit

QC 15,728.00 0.08 1,205.00 0.06 5,000.00*

*Total amount withheld for the year must not exceed $5,000 (tp-1015.f-v)

Quebec Lump sum withholding rates and amounts

Table 16. Quebec Lump sum withholding rates and amounts

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.

Effective July 1, 2023

Annual Taxable Income (I) Federal

From To
0 5,000.00 14%
5,000.01 and over 19%

Effective Jan 1, 2023

Annual Taxable Income (I) Federal

From To
0 5,000.00 15%
5,000.01 and over 20%

Effective Jan 1, 2022

Annual Taxable Income (I) Federal

From To
0 5,000.00 15%
5,000.01 and over 20%

Effective Jan 1, 2021

Annual Taxable Income (I) Federal

From To
0 5,000.00 15%
5,000.01 and over 20%

69 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Table 17. Legislative Requirements/Business Rules for Quebec Payroll Tax

Legislative Legislative Legislative Rules Notes

Requirement Description

Eligibility Any employee Employees whose

working, performing Province of Employment
duties or services in is QC
Quebec
Application Employee paid both Use both the regular tax Quebec tax owed is the
regular and formula and the bonus tax sum of the result of the
nonperiodic in same formula two tax calculations
pay run
Commission calc Unlike for federal
commission, the
Quebec regional tax
card for commission
employees reflects
just the annual
commission amount
and not the total
annual income.

Mapping of Fusion Tax Card to Revenue Quebec factors

The following illustration lists the data elements available on the Regional (QC) tax card along with their related
RQ tax formula usage.

70 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Table 18. Quebec Tax Formula Factors

Factor Meaning

A Annual taxable income

B Gross bonus, retroactive pay increase, vacation pay when vacation is not taken,
accumulated overtime payment or other non-periodic payment
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

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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

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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

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H Deduction for employment income

I Annual Taxable Income
J Deductions shown on line 19 of form TP-1015.3-V This value is stored in Fusion on the
Quebec Regional Tax card in the Designated Remote Area Deduction field
J1 Annual deductions that we authorized after the individual completed form TP-1016-V.
This value is stored in Fusion on the Quebec Regional Tax card in the Annual Deduction
field
J2 Deductions that we authorized after the first pay period in the year
J3 Deductions shown on line 19 of form TP-1015.3-V after the first pay period in the year
K Constant used to adjust the income tax rate on the basis of the annual taxable income
K1 Non-refundable tax credits that we authorized for the year after the individual completed
form TP-1016-V. This value is stored in Fusion on the Quebec Regional Tax card in the
Other Tax Credits field
K2 Non-refundable tax credits that we authorized after the first pay period in the year
L Additional source deduction of income tax requested by the individual
M Employee’s maximum annual QPP contribution
P Number of pay periods in the year
PR Number of pay periods remaining in the year (including the current pay period)
Q Amount withheld for the pay period for the purchase of class A Fonds de solidarité FTQ
shares. This value is stored in Fusion on the Quebec Regional Tax card in the Labour
Fund Contributions field
Q1 Amount withheld for the pay period for the purchase of class A or class B Fondaction
shares. This value is stored in Fusion on the Quebec Regional Tax card in the Labour
Fund Contributions field
Q2 Quebec Pension Plan second additional contributions
S1 Annualization factor
S3 Employee’s gross pensionable salary or wages under the QPP for the pay period
T Income tax rate applicable to the bracket of annual taxable income
V Basic exemption for the year under the QPP
Y Income tax for the Year
Y1 Income tax for the year excluding current non-periodic payment
Y2 Income tax for the year including current non-periodic payment

Quebec Regular taxation formula

If PTD Aggregation Switch is turned off, the following balances will not be used in the tax calculation steps:
• PTD G (Quebec)
• PTD F (Quebec)
• PTD H (Quebec)
• PTD CSA (Quebec)
• PTD QC Reg taxes
• PTD QC Supp taxes

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Quebec Regular taxation formula

Step Description Logic Result

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

CSA = (current QPP Withheld * (1-

(current QPP Supp withheld / current QPP
Withheld)) * QPP first enhancement rate /
QPP contribution rate) + (current QPP2
Withheld * (1- (current QPP2
Supplemental withheld / current QPP2
Withheld)))

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

IF the result is negative

A=0
ENDIF
Exit regular tax calculation
2d Calculate full period gross G = PTD G + current G G=
remuneration (G)
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Quebec Regular taxation formula

Step Description Logic Result

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=

3b Determine K1 K1 = QC Regional Tax Card/Other Tax Credits K1 =

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Step Description Logic Result

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

IF the result is negative

Y = 0.00
ENDIF
4 Calculate QC income tax for the pay period
4a Calculate full pay period QC Full pay period QC regular taxes = (Y / P) + L Full pay
regular taxes period QC
regular taxes
4b Calculate A: current payment A = Full pay period QC regular taxes – ((PTD QC A=
taxes Reg+Supp taxes) – (PTD QC Supp taxes))

Quebec Non-periodic taxation formula

Note: This logic uses supplemental tax Method 1 from the TP-1015.f-v guide
• If PTD Aggregation Switch is turned off, the following balances will not be used in the tax calculation
steps:
• PTD G (Quebec)
• PTD F (Quebec)
• PTD H (Quebec)
• PTD CSA (Quebec)
• PTD QC Reg taxes
• PTD QC Supp taxes

Table 20. Quebec Non-Periodic taxation formula

Quebec Non Periodic taxation formula

Step Description Logic Result

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
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Quebec Non Periodic taxation formula

Step Description Logic Result

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 Income tax
Exit Quebec Non-periodic tax calculation for the
current
payment
Calculate CSA IF current QPP withheld = 0.00 AND current QPP2 CSA
withheld = 0.00

CSA = 0.00

ELSE

CSA = (current QPP Withheld * (1-

(current QPP Supp withheld / current QPP
Withheld)) * QPP first enhancement rate /
QPP contribution rate) + (current QPP2
Withheld * (1- (current QPP2
Supplemental withheld / current QPP2
Withheld)))
ENDIF
Calculate CSB non periodic IF current QPP withheld = 0.00 AND current QPP2 CSB non
withheld = 0.00 periodic

CSB non periodic = 0.00

ELSE

CSB non periodic = (current QPP Withheld

* (current QPP Supp withheld / current
QPP Withheld) * QPP first enhancement
rate / QPP contribution rate) + (current
QPP2 Withheld * ((current QPP2
Supplemental withheld / current QPP2
Withheld)))
ENDIF
2b Calculate QC tax if Regional Tax IF Regional Tax Card/Provincial tax rate > 0.00 A=
Card/Provincial tax rate field is A = ((current non-periodic – CSB non
greater than zero periodic – current RRSP on non-periodic) *
Regional Tax Card/Provincial tax rate)
Exit tax calculation
2c Check for Commissioned If Regional Tax Card-Commission Remuneration >
employee 0.00
• Exit this formula and use the Quebec
Commission tax formula instead.
ENDIF
2d Calculate YTD periodic income YTD periodic Income = (YTD G - PTD G) – (YTD F - YTD periodic
PTD F) – (YTD H - PTD H) – (YTD CSA- PTD CSA) Income

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Step Description Logic Result

This does not

IF the result is negative include non-
YTD periodic income = 0.00 periodic
ENDIF income.
The YTD Periodic income amount represents the
amount before the start of the current pay period;
therefore, PTD values are subtracted since they are
included in YTD balances.
2e Calculate full period gross G = PTD G + current G G=
remuneration (G)
2f Calculate full period payroll F = PTD F + current F F=
deductions (F)
e.g. RPP,
RRSP, etc.
2g Calculate current H: Deduction If earnings type is T4/RL1 or T4A/RL1 H=
for Employment Income (DEI) H = Lesser of: (Deduction
((YTD non periodic + current non for
periodic + YTD G + current G) * employment
DEI rate) income)
OR
((DEI Amount - YTD H) / PR)
ELSE
H = 0.00
ENDIF

IF the result is negative

H = 0.00
ENDIF
2h Calculate J J = Regional Tax Card/Designated Remote Area J=
Deduction Remote Area
and support
payments
2j Calculate I (Annual Taxable I = YTD Periodic Income + (PR * (G – F – H – CSA – I=
Income) PTD CSA)) – J – J1

IF the result is negative

I = 0.00
ENDIF
2k Calculate tax on low income IF (P*(PTD Periodic Income + current Periodic A=
employee Income)) + YTD non-periodic + Current non-
periodic <= QC Basic Personal amount

• A = Current non-periodic * Low income

rate
• Exit tax calculation

ENDIF
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Quebec Non Periodic taxation formula

Step Description Logic Result

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)

3b Determine K1 K1 = QC Regional Tax Card/Other Tax Credits K1 =

3c Determine Total Claim credit Total Claim Credit = QC Regional Tax Card/Total Total Claim
Claim Amount * Lowest QC tax rate (T) Credit =
Set Limit on Labour fund If QC Regional Tax Card/Labour Fund Contribution Q=
contribution > Labour Fund contribution limit
Q = Labour fund contribution limit
ELSE
Q = QC Regional Tax Card/Labour Fund
Contribution
ENDIF
3d Calculate Labour Fund Labour Fund Contribution credit = Q * 15% Labour Fund
Contribution credit Contribution
credit =
3e Calculate Y1: QC Income tax for Y1 = (T * (I + YTD non periodic – YTD CSB non Y1 =
the Year excluding current non periodic – YTD CSB commission)) – K – K1 – Total
periodic payment Claim credit – Labour Fund Contribution credit

IF the result is negative

Y1 = 0.00
ENDIF
4 Calculate Income Tax for the Year (including current non periodic)
4a 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 + current non
periodic – 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

IF the result is negative

Y2 = 0.00
ENDIF
5 Calculate QC income tax for the pay period
5a Calculate A: taxes on current non A = Y2 – Y1 A=
periodic payment

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Table 21. Quebec Cumulative Averaging (commission) taxation formula

Note: This logic uses Cumulative averaging tax Method 1 from the TP-1015.f-v guide

Quebec Cumulative Averaging (commission) taxation formula

Step Description Logic Result

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

2 Calculate Annual Income

Calculate CSA IF current QPP withheld = 0.00 AND current QPP2 CSA
withheld = 0.00

CSA = 0.00

ELSE

CSA = (current QPP Withheld * (1- (current

QPP Supp withheld / current QPP Withheld)) *
QPP first enhancement rate / QPP
contribution rate) + (current QPP2 Withheld
* (1- (current QPP2 Supplemental withheld /
current QPP2 Withheld)))
ENDIF
Calculate CSB IF current QPP withheld = 0.00 AND current QPP2 CSB
withheld = 0.00 CSB non
periodic
CSB = 0.00 CSB
Commission
CSB non periodic = 0.00
CSB Commission = 0.00

ELSE

CSB = (current QPP Withheld * (current

QPP Supp withheld / current QPP
Withheld) * QPP first enhancement rate /
QPP contribution rate) + (current QPP2
Withheld * ((current QPP2 Supplemental
withheld / current QPP2 Withheld)))

CSB non periodic = CSB * (1- (current

commission / current supplemental
earnings))

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Step Description Logic Result

CSB Commission = CSB * current

commission / current supplemental
earnings
ENDIF
2a Calculate tax on low income IF ((YTD periodic + current periodic) * # of pay A=
commissioned employee periods in year/current pay period #) + YTD non
periodic + current non periodic <= QC Basic
Personal amount

• A = Current remuneration * Low

income rate
• Exit tax calculation

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

IF the result is negative

A=0
ENDIF
Exit regular tax calculation
2b Calculate Percent of Percent of Commissions = (Regional Tax Card- Percent of
Commissions to include in Commission Remuneration - Regional Tax Card- Commission
remuneration Commission Expenses) / Regional Tax Card- s=
Commission Remuneration
2c Calculate S1: (Annualization S1 = Number of pay periods in the year / current S1 =
factor) pay period number
2d Calculate G G = current G + YTD G G=
Calculate YTD prorated YTD prorated commission earnings = (current YTD
commission earnings commission + YTD commission – CSB commission prorated
– YTD CSB commission) * Percent of commissions commission
earnings

2e Calculate F F = YTD F + current F F=

2f Calculate current H: Deduction If earnings type is T4/RL1 or T4A/RL1 H=
for Employment Income (DEI) H = Lesser of: (Deduction
((YTD non periodic + current non for
periodic + G) * DEI rate) employment
OR income)
(DEI Amount / S1)
ELSE
H = 0.00

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Step Description Logic Result

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)

Non periodic amounts in Oracle include

commission earnings. The commission earnings
need to be removed from B since they are
annualized (along with G) in the calculation for I
below.
2h Calculate J J = Regional Tax Card/Designated Remote Area J=
Deduction Remote Area
and support
payments
2i Calculate J1 J1 = Regional Tax Card/Annual Deduction J1 =
Annual
Annual deductions authorized by deductions
RQ on form TP-1016-V
2j Calculate I (Annual Taxable I = (S1 * (G + YTD Prorated commission Earnings – I=
Income) CSA – YTD CSA – F – H)) + B – J – J1

IF the result is negative

I = 0.00
ENDIF
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 K=

3b Determine K1 K1 = QC Regional Tax Card/Other Tax Credits K1 =

3c Determine Total Claim credit Total Claim Credit = QC Regional Tax Card/Total Total Claim
Claim Amount * Lowest QC tax rate (T) Credit =
3d Set Limit on Labour fund If QC Regional Tax Card/Labour Fund Contribution Q=
contribution > Labour Fund contribution limit
Q = Labour fund contribution limit
ELSE
Q = QC Regional Tax Card/Labour Fund
Contribution
ENDIF
3e Calculate Labour Fund Labour Fund Contribution credit = Q * 15% Labour Fund
Contribution credit Contribution
credit =
3f Calculate Y: QC Income tax for Y = (T * I) – K – K1 – Total Claim credit – Labour Y=
the Year Fund Contribution credit

IF the result is negative

Y = 0.00
ENDIF
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Quebec Cumulative Averaging (commission) taxation formula

Step Description Logic Result

4 Calculate QC income tax for the pay period

4a Calculate A: taxes for the pay A = ((Y / S1) – (YTD A - YTD L)) + L A=
period
IF the result is negative
A = 0.00
ENDIF

Northwest Territories / Nunavut Territory Payroll tax

Overview of NT/NU Territory Payroll Tax
The Northwest Territories and Nunavut payroll tax are administered directly by the respective territories and not
by CRA. They are an employee tax that is collected at source and submitted by the employer to the territorial
government. A yearend report is submitted by the employer to the territory, listing all employees affected by the
tax with multiple points of information. This tax is not reported on the CRA nor Revenue Quebec tax yearend
slips.

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.

Rates/Amounts for NT/NU Territory Payroll Tax

Table 22. Rates/Amounts for NT/NU Territory Payroll Tax

Northwest Territories Nunavut

Territory payroll tax Contribution rate 2% 2%

In Territory threshold to be considered “normally 50% 50%
working in the territory”
Non-territory employee income threshold $5,000.00 $5,000.00

Legislative Requirements/Business Rules for NT/NU Territory Payroll Tax

Table 23 Legislative Requirements/Business Rules for NT/NU Territory Payroll.Tax

Legislative Legislative Legislative Rules Notes

Requirement Description

Eligibility Any employee 5. Employees whose Province of 5. In scope for

working, performing Employment is NU or NT Fusion
duties or services in Employee whose province of Currently out of scope
NU or NT employment is not NU or NT but who for Fusion
earn employment income while
working in NU or NT

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Legislative Legislative Legislative Rules Notes
Requirement Description

Application POE = NU or NT Territorial payroll tax rate is applied

to all related income
Yearend Reporting An annual report must be filed with nwt_payroll_tax_annual_r
the territory by February 28 of the eturn_0.pdf (gov.nt.ca)
year following the year reported
annual_return_website.p
df (gov.nu.ca)

Special Notes for NT/NU Territory Payroll Tax

Oracle Fusion current supports the NT and NU Territory payroll tax only if the Province of Employment is NT or
NU.

Calculation details for NT/NU Territory Payroll Tax

Table 24. Calculation details for NT/NU Territory Payroll Tax

Northwest Territories and Nunavut Payroll Tax

Step Description Logic Result

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.

2 Identify current earnings Earnings subject to Territory

subject to Territory payroll payroll tax
tax
3 Calculate Territory payroll Earnings subject to Territory payroll tax Current territory payroll tax
tax * Territory payroll tax contribution rate
= current territory payroll tax

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Canada Pension Plan (CPP)

Overview of CPP
Canada Pension Plan, administered by the Canadian federal government, provides a basic pension to those who
have made CPP contributions during their employment and who are at least 60 years old. CPP contributions start
the month after an employee turns 18 and are made until an employee turns 70 (exception documented below).
Contributions are based on CPP pensionable income less an exempt amount. Employers contribute an amount
equal to the employee contributions.

Rates/Amounts for CPP

Table 25. Rates/Amounts for CPP

2024 rates/amounts

CPP QPP

YMPE $66,600.00 $66,600.00

YAMPE $71,200.00 $71,200.00
Basic Annual Exemption $3,500.00 $3,500.00
Pay Period Exemption $3,500.00 / # of pay periods in $3,500.00 / # of pay
year periods in year
Contribution rate 5.95% 6.40%
Base rate 4.95% 5.4%
First enhancement rate 1.0% 1.0%
Second enhancement rate 4.00% 4.00%
Annual maximum contribution (both $3,754.45 4,038.40
employer and employee)
Annual maximum additional $184 $184
contribution (both employer and
employee)

*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

YMPE $66,600.00 $66,600.00

YAMPE
Basic Annual Exemption $3,500.00 $3,500.00
Pay Period Exemption $3,500.00 / # of pay periods in $3,500.00 / # of pay
year periods in year
Contribution rate 5.95% 6.40%

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Base rate 4.95% 5.4%

First enhancement rate 1.0% 1.0%
Second enhancement rate
Annual maximum contribution (both $3,754.45 4,038.40
employer and employee)
Annual maximum additional
contribution (both employer and
employee)
*YAMPE and Second enhancement rate come into effect in 2024

2022 rates/amounts

CPP QPP

YMPE $64,900.00 $64,900.00

Basic Annual Exemption $3,500.00 $3,500.00
Pay Period Exemption $3,500.00 / # of pay periods in $3,500.00 / # of pay
year periods in year
Contribution rate 5.70% 6.15%
Base rate 4.95% 5.4%
First enhancement rate 0.75% 0.75%
Annual maximum contribution (both $3,499.80 $3,776.10
employer and employee)

2021 rates/amounts

CPP QPP

YMPE $61,600.00 $61,600.00

Basic Annual Exemption $3,500.00 $3,500.00
Pay Period Exemption $3,500.00 / # of pay periods in $3,500.00 / # of pay
year periods in year
Contribution rate 5.45% 5.90%
Annual maximum contribution (both $3,166.45 $3,427.90
employer and employee)

*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.

87 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0

Table 26. Legislative Requirements/Business Rules

Legislative Legislative Legislative Rules Notes

Requirement Description

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

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regular remuneration exemption is applied (unless the

in the pay run. employee is paid by commission)
CPP pay period “determine the number of pay The number of pay
exemption periods at the start of the year” periods in the year is
determined by actual determined by the
number of pay actual payroll calendar
periods in the year. (number of pay dates)
and not a fixed number
(e.g., 26 for biweekly)
Transfer from When an employee is transferred
Quebec to other from an establishment subject to QPP
location in Canada to an establishment subject to CPP
during a pay period, the pensionable
earnings and benefits for the entire
pay period are considered to be CPP
pensionable.

CPP Election / When an employee submits a CPT30 The formula below

Revocation effective form to their employer, the election assumes that the
date or revocation takes effect on the first effective date entered in
pay of the following month. the system represents
the month following
receipt from the
employee, i.e., the
actual effective date.
CPP Overpayment If, during the year, an overpayment of The Self Adjust method
CPP contribution is found, the will compare the
employee is to receive a refund of the calculated CPP annual
overpayment and subsequent contribution to the YTD
remittance to CRA should be reduced amounts and generate a
by the employee and employer negative CPP
portions contribution if an
overpayment exists.

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.

Calculation Details: CPP Self Adjust method

Table 27.Calculation Details: CPP Self Adjust Method

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

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Canada Pension Plan

Self Adjust Method

Step Description Logic Result

1 Check for CPP eligibility If Ee has no pensionable income in -current CPP pensionable
Canada outside of Quebec. earnings = 0

OR -current CPP contribution = 0

If Ee < 18 or their 18th birthday is in the -exit CPP processing

month of pay date of the current pay
period.

Ee has ‘CPP Exempt’ flag checked on the

Tax Calculation card
2a Prorate CPP annual If Ee turns 18 in the calendar year of the pensionable months
maximum deduction and pay period pay date, pensionable
YMPE: months = 12 – birth month

If Ee turns 70 in the calendar year of the

pay period pay date and has no CPP
election date or current year revocation
date in effect, pensionable months =
birth month

If there is a CPP election date in the

calendar year of the pay period payment
date, pensionable months = the month
of the election date - 1

If there is a CPP election date in effect

from a prior year, pensionable months =
0

If there is a CPP revocation date in the

calendar year of the pay period payment
date and employee DOES NOT turn 70
in the calendar year of the pay period,
pensionable months = 13 – revocation
month

If there is a CPP revocation date in the

calendar year of the pay period payment
date and employee turns 70 in the
calendar year of the pay period ,
pensionable months = birth month -
revocation month + 1

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Step Description Logic Result

If there is a CPP revocation date in effect

from a prior year, pensionable months =
12

Otherwise, pensionable months = 12

2b CRA prescribed YMPE * pensionable Prorated YMPE
months / 12
2c (CRA prescribed YMPE – Annual basic Prorated annual maximum
exemption) * pensionable months / 12 contribution
* CPP 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
5.5 Check for CPT30 and at or If Ee >= 65 years old AND < 70 years old current regular CPP
over 70 years old AND has a CPP election date <= last day pensionable
of the month of the current PP pay date
AND no revocation date > election date current supplemental CPP
pensionable
OR

If Ee >= 70 and Ee’s 70th birthday is NOT

in the month of the current payment
date
current regular CPP
pensionable = 0.00
current supplemental CPP
pensionable= 0.00
ENDIF

6 Find sum of CPP/QPP YTD pensionable + Total pensionable earnings

pensionable earnings prior current regular CPP pensionable +
to current pay plus current current supplemental CPP pensionable
CPP pensionable earnings
7 Calculate current If Total pensionable earnings >= Current CPP pensionable
pensionable earnings prorated YMPE earnings

• current CPP pensionable

earnings is the greater of
o prorated YMPE - YTD
pensionable OR
o 0.00
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Canada Pension Plan
Self Adjust Method

Step Description Logic Result

ELSE

• Current CPP pensionable

earnings = current regular CPP
pensionable + current
supplemental CPP pensionable
ENDIF

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.

(the number of pay periods in the year is

derived from the payroll calendar)
(truncate after second decimal digit)

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Step Description Logic Result

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.

If Prorated CPP exemption > 3,500.00

Then
• Prorated CPP exemption =
3500.00

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

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Step Description Logic Result

either be zero (if at the

ELSE prorated YMPE) or a refund (if
above the prorated YMPE).
Current CPP contribution = Total CPP
contribution – CPP YTD contribution –
(YTD QPP contribution * CPP rate / QPP
rate)

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

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Step Description Logic Result

IF (YTD QPP reduced subject +

YTD CPP reduced subject +
current regular CPP reduced
subject + current supplemental
CPP reduced subject – prorated
YAMPE) > 0.00

CPP2 Employee taxable

= (prorated YAMPE –
prorate YMPE – YTD
CPP2 Employee taxable
– YTD QPP2 Employee
taxable

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 taxable

= YTD QPP reduced
subject + YTD CPP
reduced subject +
current regular CPP
reduced subject +
current supplemental
CPP reduced subject –
prorated YMPE – YTD
CPP2 Employee taxable
– YTD QPP2 Employee
taxable

CPP2 Employee
Supplemental taxable =
CPP2 Employee taxable
* (current
supplemental CPP
reduced subject /
(current supplemental
CPP reduced subject +
current regular CPP
reduced subject))

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Step Description Logic Result

ELSE
Current CPP2 contribution =
0.00

CPP2 Employee Taxable = 0.00

CPP2 Employee Supplemental

Taxable = 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

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Step Description Logic Result

subject + current regular CPP reduced

subject))

Calculation Details: CPP Self Adjust at Maximum method

The CPP Self Adjust at Maximum Method calculates CPP 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 CPP contribution is compared to the
prorated Annual Maximum Contribution. If necessary, an adjustment is made to the calculated CPP contribution
to synchronize the employee’s CPP contribution with their pensionable wages.

Table 28. Calculation Details: CPP Self Adjust at Maximum Method

Canada Pension Plan

Self Adjust at Maximum Method

Step Description Logic Result

1 Check for CPP eligibility If Ee has no pensionable income in -current CPP pensionable
Canada outside of Quebec. earnings = 0

OR -current CPP contribution = 0

If Ee < 18 or their 18th birthday is in the -exit CPP processing

month of pay date of the current pay
period.

Ee has ‘CPP Exempt’ flag checked on the

Tax Calculation card
2a Prorate CPP annual If Ee turns 18 in the calendar year of the pensionable months
maximum deduction and pay period pay date, pensionable
YMPE: months = 12 – birth month

If Ee turns 70 in the calendar year of the

pay period pay date and has no CPP
election date or current year revocation
date in effect, pensionable months =
birth month

If there is a CPP election date in the

calendar year of the pay period payment
date, pensionable months = the month
of the election date - 1

If there is a CPP election date in effect

from a prior year, pensionable months =
0
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Self Adjust at Maximum Method

Step Description Logic Result

If there is a CPP revocation date in the

calendar year of the pay period payment
date and employee DOES NOT turn 70
in the calendar year of the pay period ,
pensionable months = 13 – revocation
month

If there is a CPP revocation date in the

calendar year of the pay period payment
date and employee turns 70 in the
calendar year of the pay period,
pensionable months = birth month -
revocation month + 1

If there is a CPP revocation date in effect

from a prior year, pensionable months =
12

Otherwise, pensionable months = 12

2b CRA prescribed YMPE * pensionable Prorated YMPE
months / 12
2c (CRA prescribed YMPE – Annual basic Prorated annual maximum
exemption) * pensionable months / 12 contribution
* CPP 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
5.5 Check for CPT30 and at or If Ee >= 65 years old AND < 70 years current regular CPP
over 70 years old old AND has a CPP election date <= last pensionable
day of the month of the current PP pay
date AND no revocation date > election current supplemental CPP
date pensionable

If Ee >= 70 and Ee’s 70th birthday is NOT

in the month of the current payment
date
current regular CPP
pensionable = 0.00
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Self Adjust at Maximum Method

Step Description Logic Result

current supplemental CPP

pensionable= 0.00
ENDIF

6 Find sum of CPP/QPP YTD pensionable + Total pensionable earnings

• current CPP pensionable

earnings is the greater of
o prorated YMPE - YTD
pensionable OR
o 0.00

ELSE

• Current CPP pensionable

earnings = current regular CPP
pensionable + current
supplemental CPP pensionable
ENDIF

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

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Step Description Logic Result

o Current pay period CPP

exemption = CRA
prescribed CPP annual
basic exemption – YTD
CPP exemption – YTD
QPP exemption
• ENDIF
• Go to step 10
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.

(the number of pay periods in the year is

derived from the payroll calendar)
(truncate after second decimal digit)
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

If YTD CPP Exemption + Current pay

period exemption > 3,500.00
• Current pay period exemption =
3,500.00 – YTD CPP exemption
PTD pay period exemption = full pay
period exemption
10 Calculate CPP pay period If (YTD QPP pensionable + YTD CPP Current CPP contribution by
deduction pensionable + current CPP pensionable) Employee and Employer.
>= prorated YMPE

THEN

Step Description Logic Result

• current CPP contribution is the

greater of
o prorated annual
maximum contribution
– CPP YTD contribution
– (YTD QPP
contribution * CPP rate
/ QPP rate) OR
o 0.00
ELSE
• Current CPP contribution =
(current regular CPP
pensionable + current
supplemental CPP pensionable
– current pay period CPP
exemption) * CPP contribution
rate
ENDIF

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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Self Adjust at Maximum Method

Step Description Logic Result

current regular CPP reduced

subject + current supplemental
CPP reduced subject – W
AND
0.00

CPP2 Employee Supplemental taxable =

CPP2 Employee taxable * (current
supplemental CPP reduced subject /
(current supplemental CPP reduced
subject + current regular CPP reduced
subject))
17 Calculate CPP2 pay period If (YTD QPP reduced subject + YTD CPP Current CPP2 contribution by
deduction reduced subject + current regular CPP Employee and Employer.
reduced subject + current supplemental
CPP reduced subject) >= prorated
YAMPE

current CPP2 contribution

=prorated annual maximum CPP2
contribution – YTD CPP2
contribution – (YTD QPP2
contribution * CPP second
enhancement rate / QPP second
enhancement rate)
ELSE
• Current CPP2 contribution =
CPP2 Employee taxable * CPP
second enhancement rate
ENDIF
18 Limit current CPP2 IF (YTD QPP2 contribution * CPP second Current CPP2 contribution
contribution to the enhancement rate / QPP second (both Employee and
Prorated annual maximum enhancement rate) + Employer)
CPP2 contribution YTD CPP2 contribution +
Current CPP2 contribution >= Prorated If employee is at or above the
annual maximum CPP2 contribution prorated annual maximum
CPP2 contribution, the current
THEN CPP2 contribution by
Employee and Employer will
Current CPP2 contribution = either be zero (if at the
Prorated annual maximum CPP2 prorated YAMPE) or a refund
contribution – YTD CPP2 contribution – (if above the prorated
(YTD QPP2 contribution * CPP second YAMPE).
enhancement rate / QPP second
enhancement rate)

ENDIF
18.5 Limit Refund amount IF YTD CPP2 + (YTD QPP2 * CPP second Current CPP2 contribution
enhancement rate / QPP second (both Employee and
Employer).

Step Description Logic Result

enhancement rate) + Current CPP2

contribution < 0.00 If refund causes the total
Current CPP2 contribution = annual contribution to be
0.00 - YTD CPP2 + (YTD QPP2 negative, limit the refund.
* CPP second enhancement
rate / QPP second
enhancement rate)
ENDIF
19 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
subject + current regular CPP reduced
subject))

Quebec Pension Plan (QPP)

Table 29. Quebec Pension Plan (QPP)

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.

Rates/Amounts for QPP

2024 rates/amounts

Step CPP QPP

YMPE $66,600.00 $66,600.00

YAMPE $71,200.00 $71,200.00
Basic Annual Exemption $3,500.00 $3,500.00
Pay Period Exemption $3,500.00 / # of pay periods in year $3,500.00 / # of pay periods in year
Contribution rate 5.95% 6.40%
Base rate 4.95% 5.4%
First enhancement rate 1.0% 1.0%
Second enhancement rate 4.00% 4.00%

Annual maximum contribution $3,754.45 4,038.40

(both employer and employee)
Annual maximum additional $184 $184
contribution (both employer
and employee)

*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

Step CPP QPP

YMPE 66,600.00 66,600.00

YAMPE 71,200.00 71,200.00
Basic Annual Exemption $3,500.00 $3,500.00
Pay Period Exemption $3,500.00 / # of pay periods in year $3,500.00 / # of pay periods in year
Contribution rate 5.95% 6.40%
Base rate 4.95% 5.4%
First enhancement rate 1.0% 1.0%
Second enhancement rate 4.0% 4.0%
Annual maximum contribution $3,754.45 $4,038.40
(both employer and employee)
Annual maximum additional $184.00 $184.00
contribution (both employer
and employee)
*YAMPE and Second enhancement rate come into effect in 2024

2022 rates/amounts

Step CPP QPP

YMPE $64,900.00 $64,900.00

Basic Annual Exemption $3,500.00 $3,500.00
Pay Period Exemption $3,500.00 / # of pay periods in year $3,500.00 / # of pay periods in year
Contribution rate 5.70% 6.15%
Base rate 4.95% 5.4%
first enhanced rate 0.75% 0.75%
Annual maximum contribution $3,499.80 $3,776.10
(both employer and employee)

2021 rates/amounts

YMPE $61,600.00 $61,600.00

Basic Annual Exemption $3,500.00 $3,500.00
Pay Period Exemption $3,500.00 / # of pay periods in year $3,500.00 / # of pay periods in year
CPP Base rate 4.95% 5.4%%
CPP first enhanced rate 0.5% 0.5%
Contribution rate 5.45% 5.90%
Annual maximum contribution $3,166.45 $3,427.90
(employer and employee)
*CPP is documented in another section but is included in this table as this information is required for QPP
calculations when an employee transfers to Quebec during the tax year.

Legislative Requirements/Business Rules

Table 30. Legislative Requirements/Business Rules

Legislative Legislative Legislative Rules Notes

Requirement Description

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

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.

Calculation Details: QPP Self Adjust method

Table 31 QPP Self Adjust method

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.

Quebec Pension Plan

Self Adjust Method

Step Description Logic Result

1 Check for QPP eligibility If Ee has no pensionable income in -current QPP pensionable
Quebec. earnings = 0

OR -current QPP contribution = 0

If Ee < 18 or their 18th birthday is in the -exit QPP processing

month of pay date of the current pay
period.

Step Description Logic Result

Ee has ‘QPP Exempt’ flag checked on

the Tax Calculation card

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

• current QPP pensionable

earnings is the greater of
o prorated YMPE - YTD
pensionable OR
o 0.00

ELSE

• Current QPP pensionable

earnings = current regular QPP
pensionable + current
supplemental QPP pensionable

Step Description Logic Result

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

Step Description Logic Result

• Current pay period exemption =

Current QPP Pensionable
earnings
• PTD pay period exemption =
PTD pay period exemption +
Current QPP Pensionable
Earnings.
ENDIF

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.

If Prorated QPP exemption > 3,500.00

Then
Prorated QPP exemption = 3,500.00

-exclude periods not in pensionable

months for employees turning 18.

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

Step Description Logic Result

CPP contribution rate) + Current QPP

contribution < 0.00 If refund causes the total
Current QPP contribution = annual contribution to be
0.00 - QPP YTD contribution – negative, limit the refund.
(YTD CPP contribution * QPP
contribution rate / CPP
contribution rate)
ENDIF
13 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))
14 (RQ prescribed YAMPE – RQ prescribed Prorated annual maximum
YMPE) * pensionable months / 12 * QPP2 contribution
QPP second enhancement rate
14.5 Calculate prorated YAMPE RQ prescribed YAMPE * pensionable Prorated YAMPE
months / 12
15 Calculate total QPP2 IF (YTD CPP reduced subject + YTD QPP total QPP2 contribution
contribution, QPP2 reduced subject + current regular QPP
Employee taxable and reduced subject + current supplemental QPP2 Employee taxable
QPP2 Employee QPP reduced subject – prorated YMPE)
supplemental taxable > 0.00 QPP2 Employee
Total QPP2 contribution = (YTD supplemental taxable
CPP reduced subject + YTD QPP
reduced subject + current
regular QPP reduced subject +
current supplemental QPP
reduced subject – prorated
YMPE) * QPP second
enhancement rate

IF (YTD CPP reduced subject +

YTD QPP reduced subject +
current regular QPP reduced
subject + current supplemental
QPP reduced subject – prorated
YAMPE) > 0.00

QPP2 Employee
taxable = (prorated
YAMPE – prorate YMPE
– YTD QPP2 Employee
taxable – YTD CPP2
Employee taxable

Step Description Logic Result

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

QPP2 Employee Supplemental

Taxable = 0.00

Go to step 17
ENDIF

Step Description Logic Result

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))

Calculation Details: QPP Self Adjust at Maximum method

Table 32. QPP Self Adjust at Maximum method

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.

Step Description Logic Result

1 Check for QPP eligibility If Ee has no pensionable income in -current QPP pensionable
Quebec. earnings = 0

OR -current QPP contribution = 0

If Ee < 18 or their 18th birthday is in the -exit QPP processing

month of pay date of the current pay
period.

Ee has ‘QPP Exempt’ flag checked on

the Tax Calculation card

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

• current QPP pensionable

earnings is the greater of
o prorated YMPE - YTD
pensionable OR
o 0.00
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Self Adjust at Maximum Method

Step Description Logic Result

ELSE

• Current QPP pensionable

earnings = current regular QPP
pensionable + current
supplemental QPP pensionable

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.

Step Description Logic Result

Period to Date (PTD) pay PTD pay period exemption

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
• Current pay period exemption =
Current QPP Pensionable
earnings
• PTD pay period exemption =
PTD pay period exemption +
Current QPP Pensionable
Earnings.
ENDIF

If YTD QPP Exemption + Current pay

period exemption > 3,500.00
• Current pay period exemption =
3,500.00 – YTD QPP exemption
PTD pay period exemption = full pay
period exemption
10 Calculate QPP pay period If (YTD CPP pensionable + YTD QPP Current QPP contribution by
deduction pensionable + current regular QPP Employee and Employer.
pensionable + current supplemental
QPP pensionable) >= prorated YMPE

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

Step Description Logic Result

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

Step Description Logic Result

0.00

QPP2 Employee Supplemental taxable =

QPP2 Employee taxable * (current
supplemental QPP reduced subject /
(current supplemental QPP reduced
subject + current regular QPP reduced
subject))
17 Calculate QPP2 pay period If (YTD CPP reduced subject + YTD QPP Current QPP2 contribution by
deduction reduced subject + current regular QPP Employee and Employer.
reduced subject + current supplemental
QPP reduced subject) >= prorated
YAMPE

current QPP2 contribution

=prorated annual maximum QPP2
contribution – YTD QPP2
contribution – (YTD CPP2
contribution * QPP second
enhancement rate / CPP second
enhancement rate)
ELSE
• Current QPP2 contribution =
QPP2 Employee taxable * QPP
second enhancement rate
ENDIF

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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Self Adjust at Maximum Method

Step Description Logic Result

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
19 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))

Unemployment

Employment Insurance (EI)

Overview of EI
Employment Insurance (EI) is a program run by the Canadian federal government to provide temporary financial
assistance to unemployed (or underemployed) workers in Canada, who have lost their job through no fault of
their own, while they look for work or upgrade their skills. EI also assists workers in Canada who are sick,
pregnant or caring for a newborn, adopted child or family member who is seriously ill with a significant risk of
death.

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.

Table 33.Rates/Amounts for Employment Insurance (EI

2023 rates/amounts

EI EI (Quebec)

Annual Maximum Insurable Earnings $61,500.00 $61,500.00

Premium rate Employee 1.63% 1.27%
Employer rate multiplier 1.4* 1.4*
Annual maximum premium $1,002.45 $781.05
(employee)
Annual maximum premium $1,403.43* $1,093.47
(employer)
*Unless a reduced premium rate applies

2022 rates/amounts

EI EI (Quebec)

Annual Maximum Insurable Earnings $60,300.00 $60,300.00

Premium rate Employee 1.58% 1.20%
Employer rate multiplier 1.4* 1.4*
Annual maximum premium $952.74 $723.60
(employee)
Annual maximum premium $1,333.84* $1,013.04
(employer)
*Unless a reduced premium rate applies

2021 rates/amounts

EI EI (Quebec)

Annual Maximum Insurable Earnings $56,300.00 $56,300.00

Premium rate Employee 1.58% 1.18%
Employer rate multiplier 1.4* 1.4*
Annual maximum premium $889.54 $664.34
(employee)
Annual maximum premium $1,245.36* $930.08*
(employer)
*Unless a reduced premium rate applies

Table 34. EI Legislative Requirements/Business Rules

Legislative Legislative Legislative Rules Notes

Requirement Description

Eligibility -Employee is exempt from EI

if the ‘EI Exempt’ flag is
checked on the Tax Federal
portion of the tax card (or
Quebec tax card for
employees whose Province
of Employment is Quebec).

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

If there is no change in province

or TRU in the year, the self
adjust will also happen when
the annual maximum employee
premium is reached.

Self Adjust at Maximum 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.

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.

Federal Employment Insurance (EI) – Self Adjust formula

Table 35. Federal Employment Insurance (EI) – Self Adjust formula

Federal Employment Insurance

Self Adjust Method

Step Description Logic Result

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

Step Description Logic Result

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

ELSEIf PSU YTD insurable earnings +

current insurable earnings >= Annual
Maximum Insurable earnings
• Current insurable earnings =
Annual Maximum Insurable
Earnings – PSU YTD insurable
earnings
Else
• Current insurable earnings =
current insurable earnings
ENDIF
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)
• Annual EI premium = (PSU YTD
insurable earnings + current
insurable earnings) * federal EI
premium rate employee
• Current employee EI premium =
Annual EI premium – PSU YTD
EI premium
ENDIF

Round the Current Employee EI

Premium to the nearest 0.01
5 Calculate employer EI Current employer EI premium = current Current employer EI premium
premium employee EI premium * Employer EI
rate multiplier
6 Save full EI contribution EI Withheld = Current employee EI EI Withheld
and Supplemental EI premium
contribution EI Supplemental Withheld
EI Supplemental Withheld = Current
employee EI premium * (current
supplemental EI Insurable / (current
supplemental EI Insurable + current
regular EI Insurable))

Table 36. Federal Employment Insurance (EI) – Self Adjust at Maximum formula

Federal Employment Insurance

Self Adjust at Maximum Method

Step Description Logic Result

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

Step Description Logic Result

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

Round the Current Employee EI

Step Description Logic Result

EI Supplemental Withheld = Current

employee EI premium * (current
supplemental EI Insurable / (current
supplemental EI Insurable + current
regular EI Insurable))

Quebec Employment Insurance (EI) – Self Adjust formula

Table 37. Quebec Employment Insurance (EI) – Self Adjust formula

Quebec Employment Insurance

Self Adjust Method

Step Description Logic Result

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

ELSEIf PSU YTD insurable earnings +

current insurable earnings >= Annual
Maximum Insurable earnings
• Current insurable earnings =
Annual Maximum Insurable

Step Description Logic Result

Earnings – PSU YTD insurable

earnings
Else
• Current insurable earnings =
current insurable earnings
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)
• Annual EI premium = (QC/PSU
YTD insurable earnings +
current insurable earnings) *
Quebec EI premium rate
employee
• Current employee EI premium =
Annual EI premium – QC YTD EI
premium
ENDIF

Round the Current Employee EI

Premium to the nearest 0.01
6 Calculate employer EI Current employer EI premium = current Current employer EI premium
premium employee EI premium * Employer EI
rate multiplier
7 Save full EI contribution EI Withheld = Current employee EI EI Withheld
and Supplemental EI premium
contribution EI Supplemental Withheld
EI Supplemental Withheld = Current
employee EI premium * (current
supplemental EI Insurable / (current
supplemental EI Insurable + current
regular EI Insurable))

Table 38. Quebec Employment Insurance (EI) – Self Adjust at Maximum formula

Quebec Employment Insurance

Self Adjust at Maximum Method

Step Description Logic Result

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

ELSEIf PSU YTD insurable earnings +

current insurable earnings >= Annual
Maximum Insurable earnings
• Current insurable earnings =
Annual Maximum Insurable
Earnings – PSU YTD insurable
earnings
• Reached Max flag = Yes
127 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0
Copyright © 2023, Oracle and/or its affiliates / Public
Quebec Employment Insurance
Self Adjust at Maximum Method

Step Description Logic Result

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

Step Description Logic Result

Round the Current Employee EI

Quebec: Parental Insurance Plan (QPIP)

Overview of QPIP
Quebec Parental Insurance Plan (QPIP) provides benefits to employees who take maternity, parental, adoption or
parental leave for which they experience an interruption of earnings. Since January 1, 2006, maternity, parental
and adoption benefits for Quebec residents have been administered by Quebec’s QPIP program instead of by the
federal EI program.

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.

Rates/Amounts for QPIP

Table 39. Rates/Amounts for QPIP

2023 rates/amounts

QPIP (Quebec)

Annual Maximum QPIP Insurable Earnings $91,000

Employee QPIP Premium rate 0.494%
Employer QPIP Premium rate 0.692%
Employer QPIP rate multiplier 1.4008
Annual maximum QPIP premium (employee) 449.54
Annual maximum QPIP premium (employer) 629.72

2022 rates/amounts

Annual Maximum QPIP Insurable Earnings $88,000.00

Employee QPIP Premium rate 0.494%
Employer QPIP Premium rate 0.692%
Employer QPIP rate multiplier 1.4008
Annual maximum QPIP premium (employee) $434.72
Annual maximum QPIP premium (employer) $608.96

2021 rates/amounts

COLUMN HEADING QPIP (Quebec)

Annual Maximum QPIP Insurable Earnings $83,500.00

Employee QPIP Premium rate 0.494%
Employer QPIP Premium rate 0.692%
Employer QPIP rate multiplier 1.4008
Annual maximum QPIP premium (employee) $412.49
Annual maximum QPIP premium (employer) $577.82

QPIP Legislative Requirements/Business Rules

Table 40. QPIP Legislative Requirements/Business Rules

Legislative Legislative Legislative Rules Notes

Requirement Description

Eligibility -Employee is exempt from QPIP if

the ‘QPIP Exempt’ flag is checked on
the Quebec Provincial Tax
Calculation Card.
-QPIP is only calculated for
employees whose POE is Quebec
Application Annual maximum Employee premiums stops when Annual maximum
the employee’s eligible salary or insurable earnings and
wages reach the maximum QPIP annual maximum
insurable earnings for the year or premium is calculated
when the annual maximum QPIP within a PSU
employee premium for the year has
been reached.
Employer QPIP Employers pay a QPIP premium at a Note: no Employer
premium rate of 1.4008 times the employee reduced premium exists
premium. as with EI.
Note; Employer
premium calculated
based on employee
premium (not QPIP
insurable times
employer rate).
130 CANADIAN ORACLE PAYROLL TAX ENGINE CALCULATION GUIDE / Version 1.0
Copyright © 2023, Oracle and/or its affiliates / Public
Legislative Legislative Legislative Rules Notes
Requirement Description

The Employer QPIP rate

multiplier is derived as
the Revenue Quebec
prescribed employer
rate divided by the
employee rate or:
0.692% / 0.494% =
1.4008

QPIP – Self Adjust formula

Table 41 QPIP – Self Adjust formula.

Quebec Parental Insurance Plan

Self Adjust Method

Step Description Logic Result

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

-exit QPIP processing

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

Step Description Logic Result

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

Current employee QPIP premium =

Annual employee QPIP premium – PSU
employee QPIP YTD premium

Round the Current Employee QPIP

Premium to the nearest 0.01
6 Save full QPIP contribution QPIP Withheld = Current employee QPIP QPIP Withheld
and Supplemental QPIP premium
contribution QPIP Supplemental Withheld
QPIP Supplemental Withheld = Current
employee QPIP premium * (current
supplemental QPIP Insurable / (current
supplemental QPIP Insurable + current
regular QPIP Insurable))

QPIP – Self Adjust at Maximum formula

Table 42 QPIP – Self Adjust at Maximum formula.

Quebec Parental Insurance Plan

Self Adjust at Maximum Method

Step Description Logic Result

-exit QPIP processing

Step Description Logic Result

• 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

Round the Current Employee QPIP

Premium to the nearest 0.01
5 Calculate current Current employer QPIP premium = Current employer QPIP
employer QPIP premium ((current employee QPIP premium + premium
YTD employee QPIP premium) *

Step Description Logic Result

Employer QPIP rate multiplier) – YTD

employer QPIP premium

6 Save full QPIP QPIP Withheld = Current employee QPIP Withheld

contribution and QPIP premium
Supplemental QPIP QPIP Supplemental
contribution QPIP Supplemental Withheld = Withheld
Current employee QPIP premium *
(current supplemental QPIP Insurable
/ (current supplemental QPIP
Insurable + current regular QPIP
Insurable))

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

QPIP Quebec Parental

Insurance Plan
QPP Quebec Pension Plan
Revocation Regarding CPP calculations, if an employee had previously
“elected” (see above definition) to not pay CPP contributions, in a
subsequent year, they can submit CRA form CPT30 to their
employer, “revoking” their previous “election” and restart their CPP
contributions. The revocation would be effective the first pay of
the month following the receipt of the form from the employee.
TRU Tax Reporting Unit Unique combination of CRA Business number/account number.
i.e. the full 15 digits of 123456789RP0001
YAMPE Yearly Additional Prescribed by Canada and Revenue Quebec. Related to the
Maximum calculation of enhanced CPP and QPP (Phase 2)
Pensionable Earnings
YMPE Yearly Maximum Prescribed by Canada and Revenue Quebec. Related to the
Pensionable Earnings calculation of CPP and QPP
YTD Year to Date Various cumulative values for pay periods prior to the current pay
period.

Call +1.800.ORACLE1 or visit oracle.com. Outside North America, find your local office at: oracle.com/contact.

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Copyright © 2023, Oracle and/or its affiliates. This document is provided for information purposes only, and the contents hereof are subject to change without notice. This document
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