HCM Canada Payroll YE22 Income Tax regulations amendment CPP

SAP release OSS note 3248911 for YE: Income tax regulations amendment - CPP/QPP additional contributions treated as deduction at source. Part of delivery 2 new technical wage types: /308 for Pension Plan add contributions deducted from periodic income ( based on F5A amount ), and /309 for Pension Plan add contributions deducted from non-periodic income (F5B). F5, F5A, F5B factors described CRA guide T4127.

In a T4127 guide found formula for: 

F5* = (0.0100 × (I1 – $3,500.00)**, maximum $631.00 × (PM/12))
* Estimated annual amount;

where F5 = C × (0.0100/0.0595);

C - Canada (or Quebec) Pension Plan contributions for the pay period; (CPP EE deductions  wt/320)

I1 - Total remuneration for the year reported on Form TD1X. This includes commission payments, salary (where applicable), non-periodic payments, and taxable benefits; ( CPP EE earings wt /120)

PM - The total number of months during which CPP and/or QPP contributions are required to be deducted (used in the proration of maximum contribution); (12)

F5A = F5* × ((PI – B)/PI) - >WT /308
* When in the province of Quebec, replace F5 with F5Q.
** If the resulting amount is negative, enter $0.

F5B = F5* × (B/PI) - > WT /309
* When in the province of Quebec, replace F5 with F5Q.

Where:

PI- Pensionable earnings for the pay period, or the gross income plus any taxable benefits for the pay period, including bonuses and retroactive pay increases where applicable; (WT/120)

B- Gross bonus, retroactive pay increase, vacation pay when vacation is not taken, accumulated overtime payment or other non-periodic payment; (WT /118)

Please note this is my understanding how processing done in SAP.