Set up QPP / QPP2 Deductions: Canada

Applies only to Canada users who have one or more employees subject to Quebec's deduction and liability amounts.

Note: Beginning in 2024, if an employee's annual income exceeds the maximum QPP limit, employees can contribute an additional portion of their earnings to the QPP. For qualifying companies, when you install the 2023 year-end service pack, a new QPP2 deduction code is automatically set up for you. You can set up a different deduction code for QPP2 contributions if desired; however, you will need to designate the new code in the QPP2 Deduction field in PR Federal Info.
  1. Open the PR Deductions and Liabilities form (Payroll > Programs > PR Deductions and Liabilities)
  2. In the Dedn / Liab Code field, enter a number to uniquely identify the code.
  3. In the Description field, enter a description for the code.
  4. In the Type section of the form, select the Deduction radio button.
  5. Set the Calculation Category drop-down to F-Federal.
  6. In the Federal Type drop-down, select one of the following:
    • 3-QPP (combined base QPP contribution and first additional QPP contribution)
    • 7-QPP2 (second additional QPP contribution)
  7. In the GL Account field, enter the GL account to credit for this deduction code.
  8. In the Method drop-down, select R-Routine.
  9. In the Routine field, enter a value as follows:
    • If you selected 3-QPP in the Federal Type field, enter CPP or press F4 to locate and select the routine.
    • If you selected 7-QPP2 in the Federal Type field, enter CPP2 or press F4 to locate and select the routine.
  10. In the Rate / Amount #1 field, enter the current rate.
  11. In the Amount field (Limit section), select the Subject Amount option and enter the annual contribution amount.
Note: You must add this QPP deduction code to the PR Federal Info form prior to processing payroll.