Managing pension adjustments

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Managing pension adjustments

We need to print your income tax slips, we require your pension adjustments (PA) and registration pension plan numbers (if applicable).

Deadline: Ideally, prior to your last payroll of the year. If you cannot do so, please refer to the Activities to perform prior to the income tax slips production.

If the PA calculation is automated for your business, simply validate the integrity of the data in the last payroll record of the year.

How can you know if the pension adjustments calculation is automated?

✓In one of your payroll records, check the earnings or deductions entered in the year-to-date record of employees who are eligible for the pension plan. If one of the following codes appears, the calculation of pension adjustments is automated.

Frequently used earnings or deduction codes:
D600 – Pension adjustment, D726 - Pension adjustment, G751 – DPSP (pension plan abbreviation) or others.

Note that automated pension adjustment calculations can only be applied to certain pension plans.  

 

 

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Information to stay compliant here

Explanation:

▪The PA amount must be entered in box 52 of the T4 slip or box 34 of the T4A slip to allow the Canadian government to calculate the pension credits applicable to your employees. The 7-digit registration number provided by the Canada Revenue Agency (CRA) must be entered in box 50 of the T4 slip or box 36 of the T4A slip.

The PA amount is the value of benefits earned by an employee under an employer’s pension plan. The PA amount is a complex calculation usually performed by an actuary and takes into account several factors, including employee and employer participation to a defined benefit pension plan.

▪No PAs are required for an employee deceased during the current year.

▪PAs do not apply to RVSPs and RRSPs.  

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Watch the "How to manage pension adjustments?" video tutorial :

Steps to follow

 

 

1If you have not yet done so, make sure to provide us with the 7-digit registration number supplied to you by the Canada Revenue Agency (CRA), using the Contact us function (Docum> Contact us).

⇨You will be able to verify the registration number if you order the T4 slips list - T4LISTT4 or the T4A slips list - T4LISTT4 (fees apply) to verify the integrity of the data printed on the slips.
See the procedure to order reports.

2Send us your pension adjustments.

See step 3, depending on your payroll solution icon: Telephone or Internet.  

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3Fill out form B – Pension adjustments (click here to print the form) OR the Excel file Year-end Year-to-date adjustments and Pension adjustment (Docum > Documentation).

4You must transmit the forms using the Contact us function (Docum> Contact us) .

Deadline: Allow five (5) business days between the reception of the forms and the entry.

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3Enter your pension adjustments using the Year to date adjustments function (see procedure).  

 

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