Group 1 - Pension Deductions

Group 1     Type 0

This is a pension deduction based on a fixed dollar amount per pay period. A yearly limit may be entered if necessary. This deduction will reduce the employee's taxable earnings.

Group

• Enter '1'.

Type

• Enter '0'

Factor

• The dollar amount to be taken for this deduction.

Limit

• The yearly limit for this deduction.

Share %

Employer's percentage of deduction divided by the employee's percentage of deduction.

• Enter 'Benefit' if employer pays 100%.

Step

Extras

Group 1     Type 1

This is a pension deduction based on a percentage of eligible earnings or hours per pay period. A yearly limit may be entered if necessary. This deduction will reduce the employee's taxable earnings. This deduction includes a method of adjusting the employee's pensionable eligible before the deduction amount is calculated.

Group

• Enter '1'

Type

• Enter '1'

Factor

The percentage of earnings to be taken for this deduction, or the rate per hour to be taken for this deduction.

Limit

The yearly limit for this deduction.

Share %

Employer's percentage of deduction divided by the employee's percentage of deduction.

• Enter 'Benefit' if employer pays 100%.

• Enter if employer does not pay.

Step

Extras

• Enter if this deduction is based on earnings.

Examples:

• Units/1.2/

/1.2/

• Units/P-10/

/P-10/

• Enter 'Units/' when this deduction is to be calculated on the current period eligible hours/days. The pay code setting Hours Pensionable can be used to affect the total hours eligible.

• Enter as the second parameter, a value to convert the pensionable eligible earnings. For example, enter /1.2/ to convert the employee's pensionable eligible from 12 months to 10 months.  This conversion value can be used to increase or decrease the pensionable eligible earnings.  This parameter may also be entered as /P-##/ where P represents the number of periods from the employee's pay cycle code and ## is a defined value.  /P-10/ would mean the employee's periods divided by 10.

Group 1     Type 2

This is a pension deduction based on a percentage of eligible earnings per pay period. A minimum deduction amount applies to this deduction. This deduction will reduce the employee's taxable earnings.

Group

• Enter '1'

Type

• Enter '2'

Factor

The percentage of earnings to be taken for this deduction.

Limit

The minimum amount for this deduction. This is required for this type of deduction.

Share %

Employer's percentage of deduction divided by the employee's percentage of deduction.

• Enter 'Benefit' if employer pays 100%.

Step

Extras

• Enter MIN/

• Enter MIN/ when the minimum amount defined in the limit is only to be enforced when the employee has a current eligible earnings balance.

Group 1     Type 3

This is a pension deduction. It is calculated based on a percentage of eligible earnings up to a specified limit, or a second percentage of earnings up to a specified limit if the earnings exceed the first limit. This deduction will reduce the employee's taxable earnings.

Group

• Enter '1'

Type

• Enter '3'

Factor

Limit

Share %

Employer's percentage of deduction divided by the employee's percentage of deduction.

• Enter 'Benefit' if employer pays 100%.

• Enter if employer does not pay.

Step

• Enter %1/Lim1,%2/Lim2, - where %1 is the percentage of earnings to be used if they do not exceed Lim1, and %2 is the percentage of earnings to be used if they exceed Lim1.

Extras

Group 1     Type 4

This is pension deduction calculation is based on a percentage of eligible earnings up to a specified limit, and a second percentage on any balance of earnings above the first limit. The year-to-date pensionable earnings are used for this deduction. This deduction will reduce the employee's taxable earnings.

Group

• Enter '1'

Type

• Enter '4'

Factor

Limit

Share %

Employer's percentage of deduction divided by the employee's percentage of deduction.

• Enter 'Benefit' if employer pays 100%.

Step

• Enter %1/Lim1,%2/Lim2, - where %1 is the percentage of earnings to be used up to Lim1, and %2 is the percentage of earnings to be used above Lim1 but do not exceed Lim2.

Extras

Group 1     Type 5

This is a pension deduction based on a percentage of eligible earnings per pay period. The amount of CPP is deducted from the amount calculated to arrive at the actual deduction amount. A yearly limit may be entered if necessary. This deduction will reduce the employee's taxable earnings.

Group

• Enter '1'

Type

• Enter '5'

Factor

Limit

The yearly limit for this deduction.

Share %

Employer's percentage of deduction divided by the employee's percentage of deduction.

• Enter 'Benefit' if employer pays 100%.

Step

• Enter %1/Lim1,%2/Lim2, - where %1 is the percentage of earnings to be used if they do not exceed Lim1, and %2 is the percentage of earnings to be used if they exceed Lim1.

Extras

Group 1     Type 6

This pension deduction was designed to accommodate the Saskatchewan Teachers pension and meets very specific requirements.

This pension deduction calculates the pensionable eligible separately from the pension deduction amount. The pension deduction allows for two separate pension percentages which calculates based on the daily rate. A daily YMPE is defined as the percentage break point. The YMPE, less the daily CPP exemption, defines the earnings to be taken at the lower percentage. Earnings exceeding the reduced YMPE, as well as the CPP exemption, are calculated on the higher percentage. The deduction will reduce the employee's taxable earnings.

Group

• Enter '1'

Type

• Enter '6'

Factor

The percentage of earnings to be taken for this deduction.

Limit

The yearly limit for this deduction. if there is no limit.

Share %

Employer's percentage of deduction divided by the employee's percentage of deduction.

• Enter 'Benefit' if employer pays 100%.

Step

• Enter to base the daily rate for this payroll on the current pay periods eligible earnings.

• Enter the pay codes which represent the regular salary only. Pay codes are entered followed by a slash, a zero and a comma.

e.g.:  01/0,08/0,44/0,  -  this list represents pay codes 01, 08 and 44.

NOTE: The step line allows a maximum of 6 sets. The comma defines the end of each set. If more than 6 pay codes are required, define all applicable pay codes under field 12, Contract Salary Pay Code in the Saskatchewan Teachers Profile. For Saskatchewan Subs, this Step field should be empty, for Teachers at least one pay code must be defined, even when all the pay codes are defined on the Saskatchewan Teachers Profile.

Extras

%1/Daily CPP Exempt/%2/Daily YMPE/Periods/Fall YYYYPP/ RECALC YYYYPP/Pay Code/LOW Limit/Upper Limit/

e.g.: .0605/17.77/.0785/180.71/10/200109/200206/99/190/197/for TSC

The CPP exemption is zero (second element) and the current years daily YMPR (fourth element) is the full YMPE amount.

All parameters listed on the extra line must be followed by a '/' slash.

Deds

• Enter 'I/##,##,##,' where ## are the deduction codes to include the employer share portion of the deduction as pensionable earnings. 

This is specific to the Group 1 Type 6 deduction code.

EXT Name

For Saskatchewan Teachers pension only. This field may be used in conjunction with the 'B'oth (TSC or STRP) option on the Saskatchewan Pension Generation. Enter 'TSC' on the External Name field to indicate this pension deduction's Web Plan code should override to F for TSC. The default Web Plan code is A for STRP.
 

Group 1     Type 8

This is a pension deduction with calculations based on a percentage of pay period eligible earnings. This deduction includes two percentage rates for both the employee's portion and employer share, with two limit amounts. The second limit in this calculation may be set high enough to have the effect of the second percentage calculating on the balance of the eligible earnings. This deduction will reduce the employee's taxable earnings.

Group

• Enter '1'

Type

• Enter '8'

Factor

Limit

Share %

• Enter if the employer share has been set up under the Extras line (Field 16).

• Enter the employer's percentage of the deduction divided by the employee's percentage of the deduction. e.g. '1.0' means the employer share is the same amount as the employee's deduction.

Step

• Enter %1/Lim1,%2/Lim2, - where %1 is the percentage of earnings to be used up to Lim1, and %2 is the percentage of earnings to be used on the balance up to Lim2

Extras

• Enter EX$$$/MIN/E%1/E%2/BOGUS/per/per DAY/ where EX$$$ is the exemption amount (if any), and Min is the minimum hours to qualify (if any), and E%1 is the employer's percent of eligible earnings for the first step above, and E%2 is the employer's percent of eligible earnings for the second step. The Hours Pensionable pay code setting may be used to affect the minimum hours.

The fifth parameter is the BOGUS CPP percentage. This parameter should be left blank when the BOGUS CPP calculation is not used. e.g. 266.66/0/0/0/.018/

The BOGUS CPP calculation calculates a reduction to the pension deduction amount. The reduction to the pension deduction only applies until the employee has paid the yearly maximum in actual CPP. This calculation takes the employer share from field Share %. The BOGUS CPP calculation will also supply a report of the full pension deduction and BOGUS CPP reduction amount. The report is generated under #####P.LST, with the digits taken from the log number for the given payroll run. The BOGUS CPP deduction calculation is as follows:

e.g. 0/0/.06/.08//per/

The sixth parameter 'per' will allow the pension calculation to temporarily increase part-time employees pensionable eligible up to 100% for the pension deduction calculation only. The actual pension deduction amount is then reduced according to the employee's percentage employed. The employee's percentage of employment is determined using the percentage employed feature and is based on the employee's master function line percentage.

The sixth parameter can also be entered as 'perS' which will do the same calculation as 'per' except the employees' percent employed is totaled for all active and in cycle function lines. perS will also leave the eligible earnings bumped up to 100% FTE while per does not. e.g. 0/0/.06/.08//perS/

The sixth parameter can also be entered as 'perT' which will bump up the employee's pensionable earnings to 100%, based on the master function line only, perT also leaves the eligible earnings bumped up to 100% FTE. The perS setting leaves the eligible earnings bumped up as needed by ATRF, while per does not. e.g. 0/0/.06/.08//perT/

Manitoba TRAF Deduction

Per pay period deduction amount setup, YMPE per period taken (12-month payroll).

Step .088/4466.67,.104/13085.42,

Extras 0/0/0/0/0/perS/

Per day calculation with YMPE defined as annual amount. per DAY in the 7th position triggers the annualized calculation that is broken down to a per day contribution. This formula is required for TRAF as of September 2016.

Step .088/53600.00,.104/157025.00,

Extras 0/0/0/0/0/perS/per DAY/

Ontario OMER Deduction

 Lim1 is annual YMPE and Lim2 is 7 times YMPE (as per 2020)

 When PP or PS is defined in the 7^th position of the EXTRAS line, this triggers the formula to use the periods from the employee’s pay cycle code to reduce the YMPE/Lim1 and Lim2 to a per pay period amount.  PP will use the Number Of Periods and PS will use the Number Of Salary Periods from the employee’s pay cycle code.  The employee’s pay period earnings are used for this calculation.

          STEP                     .09/58700,.146/410900,

         EXTRAS               0/0/.09/.146/0//Pp/   OR  0/0/.09/.146/0/ps/

Group 1     Type 9

This deduction can be used for both a BC Teacher and Municipal or Ontario Teacher pension deduction. It is calculated based on a percentage of annual eligible earnings up to a specified limit, and a second percentage of earnings on the balance or to the maximum pensionable. There are also 2 percentages of employer's share of earnings associated with the 2 steps. This deduction will reduce the employee's taxable earnings.

Group

• Enter '1'.

Type

• Enter '9'.

Factor

This field corresponds to the amount field on the employee deduction. If a value exists in the amount field on the employee, that value is an override to the PEL (annual earnings amount) on the extra line. This feature can be used to accommodate employees brought over to a payroll from a previous payroll. The annual earnings amount for that specific employee can be adjusted to reflect the earnings from the previous payroll.

Limit

Share %

• Enter if the employer share has been set up under the Extras line (Field 16).

• Enter 'Benefit' when the deduction is to be defined to be completely paid for by the employer. The percentages defined on the Extra lines will only use the EMP%1 and EMP%2 on a Benefit deduction. This setup would be used for employees with over 35 years of pension where the employer continues to contribute and the pension eligible is to be recorded.

Step

Extras

• Enter EMP%1/PEL/EMP%2/E%1/E%2/MINHRS/Periods/TERM/MAXPEN/

Examples:  .0755/42100/.0905/.1068/.1218/ 
         .0755/42100/.0905/.1068/.1218/200//YTD/ 
         .0755/42100/.0905/.1068/.1218////60000/ - with maximum pensionable earnings

.1068/42100/.1218/0/0// - where the Share% is Benefit for 35+ yrs of service

(where EMP%1 is the percent paid by the employee up to PEL). PEL is the annual earnings amount (to date plus current) and is the CPP Earnings Maximum (verified by the Pensions Branch annually).

You can enter an override to 'PEL' by entering a value other than zero in the amount column on the employee's deduction record (for Group 1 Type 9 only).

EMP%2 is to be taken on all earnings in excess of the PEL.

E%1 is the employer's percent of eligible earnings for the first step above, and E%2 is the employer's percent of eligible earnings for the second step.

When this pension deduction is defined under the Ontario Pension Profile as a TPP deduction, this formula will calculate the employee's pension all with the EMP%2 or higher rate, when the employee is flagged as CPP Exempt. The formula considers the CPP Effective date compared against the pay period ending date.

MINHRS is the minimum number of hours, per period, required to start taking the deduction. The Hours Pensionable pay code setting may be used to affect the total minimum hours. The MINHRS may also be defined as either accumulated total eligible hours worked to date or accumulated eligible hours for the current year. Set the TERM to All when the MINHRS is to be several hours to date or set TERM to YTD when MINHRS is accumulated hours for the current year. For example:

 %1/PEL/%2/E%1/E%2/600//All/       or
 %1/PEL/%2/E%1/E%2/200//YTD/    or
 %1/PEL/%2/E%1/E%2/30///

TERM, either All or YTD must the 8^th element in the list. To set up so employees will automatically start getting this deduction the first pay period the minimum hours are reached, the following steps must be taken:

Set the deduction on the employee with '#' in the frequency field. '#' must be set up as a valid frequency code in the database. The # must be included under the Deduction Frequencies on all applicable payroll calendar (every period that the pension should be taken).

If an employee is eligible for the deduction, then the frequency on the deduction for that employee will be changed to match that on the deduction. This is done during the update process.The employee will now have the deduction taken on all subsequent payrolls, regardless of the number of hours worked.

Periods is an override to the number of pay periods on an employee's pay cycle code. When a value is entered for Periods (greater than zero), the employee's pension eligible is annualized based on the number of pay periods in the pay cycle code and then reduced back down to a single pay period eligible based on Periods. The option allows pension to be taken over ten months for employees paid on a 12-month basis.

MAXPEN – The 9th element allows the definition of an optional pensionable earnings maximum to be used for both the pension eligible and the deduction calculation.  When a value is entered, only earnings up to this amount will be included as pensionable. This element is not intended for BC Superannuation pension and should be left blank on BC payrolls.