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Administrator Guide
Last Updated: 2023-06-23
Set Up Taxation for Pretax Registered Pension and Savings Plan Deductions (CAN)

Set Up Taxation for Pretax Registered Pension and Savings Plan Deductions (CAN)

Security:
Set Up: Payroll (Calculations - Payroll Specific)
 domain in the Core Payroll functional area.
Workday offers 2 ways to configure RPP / RRSP deductions:
  • Proportional taxable wage reduction.
  • Wage-specific taxable wage reduction.
In these examples, the employee contributes 10% of their salary to an RRSP and 5,000 of their 7,500 bonus to their RRSP.
Example: This table displays how RRSP deductions calculate with proportional taxable wage reduction configuration on the deduction.
Wage Type
Gross Amount
RRSP Deduction
Taxable Wages
Salary
2,500
1,312.50
1,187.50
Bonus
7,500
3,937.50
3,562.50
Example: This table displays how RRSP deductions calculate with wage-specific taxable wage reduction configuration on the deduction.
Wage Type
Gross Amount
RRSP Regular Deduction
RRSP Bonus Deduction
Taxable Wages
Salary
2,500
250.00
2,250
Bonus
7,500
5,000
2,500
Your RRSP deductions use proportional taxable wage reduction and use these pay component groups:
  • RPP/RRSP/RCA (F) [CAN]
  • Other Quebec Deductions (F) [CAN]
As of Workday 2020R2, you can configure your existing RRSP deductions to use wage-specific taxable wage reduction by following these steps.
  1. Access the
    Enable Factor F Pay Component Groups (Regular / Bonus / Lump Sum)
     task.
  2. Clear the
    Prorate RPP/RRSP/RCA (F) Source Deductions
     check box.
    Clearing this check box enables you to attach wage type-specific pay component groups to your existing deductions.
  3. As you attach the pay component groups to your deductions, consider these valid pairings to reduce taxable wages subject to specific tax methods:
    Taxable Wage Type
    Valid Pay Component Group Pairs
    Regular
    RPP/RRSP/RCA (F) – Regular [CAN]
    Other Quebec Deductions (F) – Regular [CAN]
    Bonus
    RPP/RRSP/RCA (F) – Bonus [CAN]
    Other Quebec Deductions (F) – Bonus [CAN]
    Lump Sum
    RPP/RRSP/RCA (F) - Lump Sum [CAN]
    Other Quebec Deductions (F) - Lump Sum [CAN]
  4. Access the
    Create Deduction
     task to create additional pension and savings plan deductions for additional wage types.
    As you create the new deductions, consider the valid pay component group pairings listed above.