Please build the answer based on the following text from astudying book:
Reporting Pension Contributions and Adjustments The followingare some general year-end reporting guidelines employers shouldfollow when reporting pension contributions and pension adjustments(PAs):
ï· employee contributions to a registered pension plan (RPP) are taxdeductible; they are reported in box 20 on the T4 slip
ï· employee and employer contributions to a defined contributionpension plan are part of the PA that is reported in box 52
ï· PAs are reported on the T4 slip; however, under certainconditions the PA may be reported on the T4A slip
ï· employee contributions to a Registered Retirement Savings Plan(RRSP) are not reported by payroll; the employee will receive a taxreceipt from their financial institution
ï· employer contributions to an employeeâs RRSP are reported on theT4 slip in box 14 and in the Other Information area using code 40as they are a cash taxable benefit, subject to CPP contributionsand EI premiums
Question:
Your organization currently has a defined contributionpension plan with employees contributing up to 3% with a companymatch. Effective with the first pay of the new year, new employeeswill no longer be enrolled in that plan. Instead, they will beenrolled in the new Group Registered Retirement Savings Plan (RRSP)with the same contribution options. In your ownwords, explain the difference in the T4 information slipreporting for these two groups of employees.
Please build the answer based on the following text from astudying book:
Reporting Pension Contributions and Adjustments The followingare some general year-end reporting guidelines employers shouldfollow when reporting pension contributions and pension adjustments(PAs):
ï· employee contributions to a registered pension plan (RPP) are taxdeductible; they are reported in box 20 on the T4 slip
ï· employee and employer contributions to a defined contributionpension plan are part of the PA that is reported in box 52
ï· PAs are reported on the T4 slip; however, under certainconditions the PA may be reported on the T4A slip
ï· employee contributions to a Registered Retirement Savings Plan(RRSP) are not reported by payroll; the employee will receive a taxreceipt from their financial institution
ï· employer contributions to an employeeâs RRSP are reported on theT4 slip in box 14 and in the Other Information area using code 40as they are a cash taxable benefit, subject to CPP contributionsand EI premiums
Question:
Your organization currently has a defined contributionpension plan with employees contributing up to 3% with a companymatch. Effective with the first pay of the new year, new employeeswill no longer be enrolled in that plan. Instead, they will beenrolled in the new Group Registered Retirement Savings Plan (RRSP)with the same contribution options. In your ownwords, explain the difference in the T4 information slipreporting for these two groups of employees.