(CAN) Administering Additional Canadian Payroll Functionality

This chapter discusses how to:

Administer Canada Savings Bonds.
Administer Canada Payroll Savings (CPS) plans.
Administer Canadian low-interest loans.

(CAN) Generating a Canadian Record of Employment

(CAN) Setting Up Additional Canadian Payroll Functionality

Administering the Canada Savings Bond Program

This section provides an overview of Canada Savings Bond deductions, lists prerequisites, and discusses how to register employees in the Canada Savings Bond program.

Note. The Canada Savings Bond (CSB) functionality is different from the Canada Payroll Savings (CPS) functionality. The documentation for the Canada Savings Bond functionality describes the setup for the original Canada Savings Bond program, while the documentation for the Canada Payroll Savings plan describes the setup for the new Canada Savings Bond program.

Understanding Canada Savings Bond Deductions

The system automatically generates a row of general deduction data for the employee when you save a bond registrant enrollment record. However, corrections to the data are not automatic. Whenever you correct the Canada Savings Bond table or Canada Savings Bond Spec data, you must make corresponding corrections to the general deduction data, when applicable.

If an employee transfers to a different pay group and the transfer results in a change to the bond deduction amount, enter a new General Deduction data record to reflect the effective date of the change, the new flat or additional amount, the new goal amount, and the current goal balance.

Just as for any other deduction with a goal amount, special handling is required for employees who leave the company or change to an unpaid status.

See Also

Setting Up Employee General Deductions

Prerequisites

Before you can administer Canada Savings Bonds, you must first:

Define deductions for Canada Savings Bonds.
Enter Canada Savings Bond denominations.

See Also

Setting Up Canada Savings Bonds

Pages Used to Administer the Canada Savings Bond Program

Page Name	Object Name	Navigation	Usage
Canada Savings Bonds	CSB_REG_DATA	Payroll for North America, Employee Pay Data CAN, Deductions, Purchase Canada Savings Bonds, Canada Savings Bonds	Register employees participating in the Canada Savings Bond program.
Canada Savings Bond Purchase	RUNCTL_PAY131CN	Payroll for North America, Payroll Processing CAN, Pay Period Reports, Canada Savings Bond Purchase, Canada Savings Bond Purchase	Run PAY131CN, which generates a listing of employees' Canada Savings Bond purchases through payroll deduction for the specified Canada Savings Bond series code. It provides detailed information for each employee, such as registrants, bond quantities, denominations, par values, carrying charges, goal amounts, deduction amounts, and cancellation dates.

Registering Employees in the Canada Savings Bond Program

Access the Canada Savings Bonds page.

Savings Bond Information

CSB Series Code (Canada Savings Bond series code)

Select the Canada Savings Bond series code for which you’re registering the employee.

Registrant Details

Employee	Select this check box if the principal registrant is the employee. If you select this check box, the Or Dep/Benef (or dependent/beneficiary) field becomes unavailable for entry.
Or Dep/Benef (or dependent/beneficiary)	Select this check box if the principal registrant is a dependent or beneficiary of the employee.
Joint Registrant	Enter any joint registrant.

Bond Specifications

Quantity	Enter the quantity of the bonds to be purchased.
Denomination	Enter the denomination of the bonds to be purchased.
Par Value	The par value is maintained by the system. Par value represents the face value of the bonds.
Deduction Amount	This is the par value multiplied by the deduction factor from the Canada Savings Bond table. The deduction amount total is maintained by the system and is sent to the employee’s General Deduction Data page for payroll processing.
Goal Amount	The goal amount is the deduction amount multiplied by the number of deductions from the Canada Savings Bond table. The goal amount total is maintained by the system and is sent to the employee’s General Deduction Data page for payroll processing.
Total for Registrant(s)	Represents the total amount for all registrants.

Note. You may want to start keying future-dated registrant information before the Canada Savings Bond series effective date to balance your workload. Because of the PeopleSoft effective-dating logic, the effective date on the Canada Savings Bond table must be dated early enough to enable selection of the series code on the registrant page. For example, if the bond series code is effective October 1, 2001, but you want to start keying Canada Savings Bond registrant information on September 1, 2001, the Canada Savings Bond series code effective date must be entered as September 1, 2001.

Administering Canada Payroll Savings Programs

This section provides an overview of Canada Payroll Savings (CPS) programs, lists prerequisites, and discusses how to:

Maintain CPS employee contributions.
Process the CPS transmittal file.

Note. For further information, see the published guides that are available through your Canada Savings Bonds representative.

Understanding Canada Payroll Savings Programs

Payroll for North America provides functionality to support the Canada Payroll Savings program and helps you effectively manage the activities as a participating organization.

After the CPS plan is set up, the employee specifies a contribution amount, the employer automatically deducts that amount from the employee's paycheque on a regular basis, and the contribution details are transmitted electronically to the Bank of Canada for credit to the employee's savings plan account.

Canada Payroll Savings Transmittal File and Report

The Payroll Savings Create File Structured Query Report (SQR) Report process (PAY132CN) produces the CPS transmittal file that includes detailed employee contribution information (by pay run ID) for transmission to the Bank of Canada. At the same time, the system produces a transmission summary report for your reference. The detailed employee deduction information to support this summary report is available on the corresponding Deduction Register (SQR program PAY001CN).

Create this file once per pay period, and only after the corresponding Pay Confirmation COBOL SQL process (PSPCNFRM) is complete. The system automatically maintains a record of the pay run IDs that have been processed to prevent duplication of the file.

The system also uses the Last CPS Transmission ID # (last Canada Payroll Savings transmission ID number) field in the Installation table to ensure that each transmission ID number that it generates is unique.

Note. See the Canada Payroll Savings Program Technical Specifications booklet for further information regarding the technical aspects of creating or transmitting files to the Bank of Canada.

Canada Payroll Savings Transmittal File Output Location

The Payroll Savings Create File process creates the CPS transmittal file in the PeopleSoft report output directory. The following list identifies the naming convention of the output files for each platform:

DB2/AS400: File Name is CPSCN(D0001)
MVS: File Name is CPSC0001
Others: File Name is CPS_0001

Here, 0001 is a uniquely generated CPS transmission ID number.

Prerequisites

Before you can administer employees' contribution amounts, you must perform the following setup steps:

Define a CPS organization ID.
Specify CPS campaign information.
Define CPS deductions.

Pages Used to Administer Canada Payroll Savings Programs

Page Name	Object Name	Navigation	Usage
General Deduction Data	GENL_DED_DATA	Payroll for North America, Employee Pay Data CAN, Deductions, Create General Deductions, General Deduction Data	Enroll employees in the CPS program, specify the calculation method, and set up each employee’s contributions.
Canada Payroll Savings File	RUNCTL_PAY132CN	Payroll for North America, Payroll Processing CAN, Pay Period Reports, Canada Payroll Savings File, Canada Payroll Savings File	Run the PAY132CN report to create a CPS electronic data transmission file and a transmission summary report for your reference. The system produces the transmission file in accordance with the format that is provided by the Bank of Canada.

Maintaining Canada Payroll Savings Employee Contributions

Access the General Deduction Data page.

See Setting Up Employee General Deductions.

Processing the Canada Payroll Savings Transmittal File

Access the Canada Payroll Savings File page.

Pay Run ID	Enter the pay run ID for the data that you're transmitting.
Reference ID	Enter optional reference information that you require to recognize the transmission.

Administering Canadian Low-Interest Loans

This section provides an overview of Canadian low-interest loans, lists prerequisites, and discusses how to specify the loan percentage.

Understanding Canadian Low-Interest Loans

When an organization provides an employee with an interest-free or low-interest loan, the employee receives a taxable benefit equal to the amount of interest that would have been paid for the year at the government-prescribed interest rates, minus the amount of interest that the employee pays in the year, or within 30 days after the end of the year. This benefit has no taxable goods and services tax component.

The value of the taxable benefit changes throughout the year as the prescribed rate (which is set each quarter by the federal government) changes, and as the employee pays down the loan (and/or any interest).

Note. A loan also includes any other indebtedness. For example, if the employer purchases a computer for the employee and the employee proceeds to have payroll deductions for that computer, the company has made a loan for the computer’s price less any employee down payments.

Taxable Benefit Calculation Example

Payroll for North America calculates the low-interest loan taxable benefit as follows:

Loan Balance x Prescribed Interest Rate % on Canadian Company Tax table

minus

Loan Balance x Loan Interest Rate % on General Deduction Data page for employee

equals

Annual low-interest loan taxable benefit for the employee

To calculate the actual amount of the taxable benefit on an employee’s individual paycheque, the system divides the annual low-interest loan taxable benefit by the number of the employee’s pay periods per year.

For example, on January 1, 2004, company VNB lends Joan Avery 10,000 CAD at a rate of 5 percent. The government-prescribed rates for 2004 are:

Quarter	Percent
1st quarter	8%
2nd quarter	7%
3rd quarter	6%
4th quarter	5%

Joan chooses to pay back the loan through payroll deductions at 500 CAD per monthly pay period starting February. The system calculates the monthly low-interest loan taxable benefit as follows:

Pay Period	Loan Balance	Prescribed Interest Percent (Government Rate)	Loan Interest Percent (Company Rate)	Monthly Taxable Benefit
January	10,000 CAD	8%	5%	25 CAD
February	9,500 CAD	8%	5%	23.75 CAD
March	9,000 CAD	8%	5%	22.50 CAD
April	8,500 CAD	7%	5%	14.17 CAD
May	8,000 CAD	7%	5%	13.33 CAD
June	7,500 CAD	7%	5%	12.50 CAD
July	7,000 CAD	6%	5%	5.83 CAD
August	6,500 CAD	6%	5%	5.42 CAD
September	6,000 CAD	6%	5%	5 CAD
October	5,500 CAD	5%	5%	0 CAD
November	5,000 CAD	5%	5%	0 CAD
December	4,500 CAD	5%	5%	0 CAD
Total				127.50 CAD

The total taxable benefit for the year in this example is 127.50 CAD.

Home Purchase or Home Relocation Loan Calculation

The system does not calculate the taxable benefit of low-interest home purchase or home relocation loans. For these types of loans, the prescribed rate in effect at the time the loan is made (not the current quarterly adjusted prescribed rate) should be used to calculate the taxable benefit throughout the loan period, for up to five years. If the prescribed rate is lowered during the five-year period, the lower prescribed rate is used until such time as the rate goes up again. After five years, the prescribed rate at that time is used for the next five years, and so on.

Note. Home purchase or home relocation loan calculation is subject to change depending on legislated requirements.

Prerequisites

Before you can specify an employee's loan percentage, you must perform and maintain the following setup steps:

Maintain prescribed interest rates and loan data.
Activate loan processing.
Establish loan deductions.

See Also

Setting Up Canadian Low-Interest Loans

Page Used to Administer Canadian Low-Interest Loans

Page Name	Object Name	Navigation	Usage
General Deduction Data	GENL_DED_DATA	Payroll for North America, Employee Pay Data CAN, Deductions, Create General Deductions, General Deduction Data	Assign low-interest loan deductions to an employee and specify the calculation method for the deduction.

Specifying the Loan Percentage

Access the General Deduction Data page.

See Setting Up Employee General Deductions.