eForms News

All rates and constants have been updated for the 2024 taxation year.

Data may be rolled forward from 2023 AvanTax eForms.

All Forms printing / XML output is in 2023 format, but may be used for filing 2024 returns.

♦ We have made a number of improvements to the eForms function to export data to CSV files. In addition we made some improvements to the eForms import function that updates existing data based on a linking filed such as the SIN or name.

A bug has been found affecting Relevé 1 data entry.

When entering data using the Relevé 1 Data Entry Screen, it is possible for multiple T4 slips to be created, each one containing a portion of the data on the Relevé 1 slip. Additionally, under certain circumstances, if you were to view and browse the spurious T4 slips created by this process, you may find additional duplicate Relevé 1 slips are also created. The effect may be more pronounced if you have the province of employment set to “QC” in the company setup. Until the new upgrade is installed it is recommended that you change the default province of employment in the company setup to a blank if it is presently set to 'QC'.

This has been corrected in release 2023.107 of eForms.

After installing the update, you may have to clean up any Relevé 1 or T4 data that you entered manually. The number of extra slips may vary. Even if it seems like there are many slips, then simply delete the extra ones. You may have to go back and forth between the Relevé 1 and T4 screens a couple of times to make sure you got them all. Then check your work.

If there are too many Relevé 1 and T4 slips to go it may be better to delete the Relevé 1s and T4s and start over.

If it looks like the Relevé 1s are OK, but the T4s are too difficult to fix then there is a procedure involving delinking the slips, deleting the T4s and then relinking the slips again. Contact technical support for assistance.

The business address which prints on the top of the T2200 & T2200N forms would not print correctly if these forms were printed for multiple companies at the same time. The business address is printed correctly when the forms are printed for a single company at a time. If you printed multiple companies at the same time then the business address associated with the first company in your selection would print on all the forms. This has been corrected in release 2023.106 of eForms.

1. Note to users who print T4's for Quebec taxpayers - there is an error when printing the 3/page T4 slips whereby the QPP contributions amount (box 17) prints in the CPP contributions box (box 16). This issue is only on the 3/page T4 form; the 2/page T4 form prints correctly. This issue only affects the printed forms. The XML returns are not affected.

2. On February 5th, CRA made available their updated T2200 form for the 2023 tax season. Following extensive consultation with various clients we have been working diligently to add the new T2200 form to eForms and we are happy to report that the new T2200 form is now available in eForms. Not only that, but the new T2200 form exists in parallel with the old T2200 form, enabling clients with T2200s already underway with the old form to continue with that form. (CRA has confirmed that both the new T2200 form and the old T2200 form are valid for the 2023 tax season). The new T2200 form will be referred to as “T2200N” within eForms.

Starting on January 1, 2024, the Canadian government has introduced the second additional Canada Pension Plan (CPP) contributions, also known as CPP2. This is a part of the CPP enhancement plan.

There has always been a “ceiling” for the calculation of contributions called YMPE (yearly maximum pensionable earnings) which is set at $68,500. Now there is a second ceiling called AYMPE (additional yearly maximum pensionable earnings).

For the 2024 tax year, the additional yearly maximum pensionable earnings (AYMPE) is set at $73,200. Both the employee and employer contribution rate is 4%. This means the maximum annual employee and employer contribution is $188, and the maximum annual self-employed contribution is $376.

CPP2 maximum = (AYMPE – YMPE) x 4% = ($73,200 – $68,500) x 4% = $188

How eForms Adjusts CPP (2024 rates - Adjustments using 2024 rates & CCP2 will be available in the eForms release scheduled for May, 2024)

The basic calculation of CPP is 5.95% of the pensionable earnings up to a maximum of the first ceiling (YMPE) of $68,500 less $3,500 exempted amount. The maximum contributory earnings for the year is thus $68,500 – $3,500 = $65,000 and the maximum contribution is $65,000 x 5.95% = $3,867.50.

The exempted amount of $3,500 must be prorated depending on how long the individual was a pensionable employee during the year. So someone who didn’t work the full year or was too young or too old would have a prorated exemption.

eForms adjustment options allow for calculation of CPP in two ways.

Option 1: Adjust if Over Maximum or Under Required Minimum

The first method allows for a range where the maximum is calculated without the $3,500 exempted amount and the required minimum is calculated with the full $3,500 in the calculation. This method would be used if you cannot prorate the $3,500 because you don’t know the # pensionable weeks for each employee.

Example: Pensionable earnings of $60,000

Minimum CPP = ($60,000 – $3,500) x 5.95% = $3,361.75

Maximum CPP = ($60,000 – 0) x 5.95% = $3,570.00

Any value between the min and the max is acceptable and will not be adjusted by eForms. If the value entered in the slip differs from this by more than the threshold selected by the user (for example, by more than $1.00), eForms will adjust the amount through tax.

Option 2: Adjust Based on the Number of Pensionable Weeks

The more fine-tuned way prorates the $3,500 exempted amount based on the number of pensionable weeks. For example, someone worked half the year (26 weeks).

CPP = (60,000 – 3,500 x 26/52) x 5.95% = $3,465.88

If the value entered in the slip differs from this by more than the threshold selected by the user (for example, by more than $1.00), eForms will adjust the amount through tax.

How eForms Will Adjust CPP2 (proposed)

CPP2 Calculation

The CPP2 amount is calculated the same way regardless of which adjustment option is chosen.

(The lesser of Pensionable earnings and AYMPE – YMPE) x 4%

• Example #1: pensionable earnings of $80,000

Since the pensionable earnings is greater than the AYMPE, CPP2 is AYMPE – YMPE x 4%.

73,200 – 68,500 = 4,700

CPP2 = 4,700 * 4% = $188

• Example #2: pensionable earnings of $60,000

Since the pensionable earnings is less than the additional YMPE, CPP2 is zero.

In either case, any amount the user has entered will be adjusted through tax.

References

- Calculate payroll deductions and contributions (https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/calculating-deductions/making-deductions/second-additional-cpp-contribution-rates-maximums.html)

- Calculate second additional CPP contributions (CPP2) deductions (https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/calculating-deductions/how-to-calculate/calculate-second-cpp.html#step3a)