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Re: Canadian Tax error on Bonus O-C payments

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Hi David, I encountered a similar situation where employer is giving a bonus in first quarter of the year in Off-cycle where some employees select for 100% RRSP.

 

so SAP Is deducting Income tax on the difference of CPP and EI and as per business SAP should only deduct CPP and EI not income tax if any employee select 100% RRSP option.

 

I copied model wage type M251 for Bonus and M580 RRSP deduction from Bonus.

Please let me know is SAP correct in calculating income tax? Looking for help.


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