In all the 2020 excitement, I realized I never posted about the 2020 Year End update. I think 2020 for me was all about getting through day to day things and I just forgot about this. Anyway, I’m back to blogging semi-regularly again and it’s that time of year again.
The CRA (Canada Revenue Agency) released their T4127 guide for January 1, 2022 very late this year (December 14th). Typically Microsoft (& other software vendors) get in late November to allow them adequate time to update their software for the new year tax changes.
Update 3: December 22, 2021 - The CanPay update is ready. See below.
NOTE: there is only one download this year, it’s 18.4 or “Microsoft Dynamics GP”. There is now only one supported version of GP which gets tax updates. If you upgraded to 18.3, you will be on 18.4 with this update.
Canadian Payroll Year-End and Tax Updates for Microsoft Dynamics GP | Microsoft Docs
GP core version: 18.4.1384
Canadian Payroll version 18.04.1417
Basic Personal Amounts and/or Spousal Amounts may need updating via script.
A) Basic Personal Amounts may round and be off by a $1 either way. The CRA is ok with this but it can be updated via SQL script easily enough. Look on the Microsoft blog above for what table to update.
B) Spousal Amount does not update properly and needs manually updating (or scripting) if this applies to any of your employees. Most employees have this set to $0 so at most people likely have a handful of changes to make here.
What are the tax changes this year?
The following is updated based on Terry Heley’s blog (link) and the T4127 from CRA.
- The Basic Personal Amount is fixed at $14,398 for all regardless of income (which could be updated via script). See the blog link for details if needed.
- RL-1 form and XML changes
- T4A form and XML changes
- No T4 slip or XML changes
- No table changes (** for this specific tax update **)
What else do I need to know?
If you are like most Canadian Payroll module customers, you update once or twice per year when there are tax updates. With the “Modern Lifecycle”, those already on 18.x prior to year end are updating to 18.4. With that and each year from now on, be prepared to also update your ISV products to the compatible 18.4 release. In previous years, some ISVs may have needed updating but not all and you may have had the luxury of skipping some.
What I’m finding as I update a client with multiple ISVs is nearly ALL of them need updating and some of them are changing formats for things like registration keys, i.e., you need new keys from the ISV to finish the work.
If you are updating your own environment, be prepared. Review the ISV websites for new builds, ask if there are new reg keys, and have it all on hand prior to starting your updates. The following are ISVs I have already run into:
- eOne Solutions
- Nolan Business Solutions