What is yearly maximum pensionable earnings in SAP PY-CA - Canada?

SAP Term: yearly maximum pensionable earnings

• Component: PY-CA

• Component Name: Canada

• Description: Limit adjusted every year by the Canadian Customs and Revenue Agency in order to determine a taxpayer's maximum benefits and contributions to the Pension Plan.

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• Key Concepts: 
  Yearly Maximum Pensionable Earnings (YMPE) is a term used in the Canadian Payroll component of SAP. It is the maximum amount of earnings that can be used to calculate an employee’s pensionable earnings for a given year. This amount is set by the Canadian government and is updated annually. 
  
  How to use it: 
  In SAP, the YMPE is used to calculate the pensionable earnings for each employee. This calculation is done by taking the employee’s total earnings for the year and subtracting any non-pensionable earnings, such as overtime or bonuses. The remaining amount is then compared to the YMPE and the lower of the two amounts is used as the employee’s pensionable earnings for that year. 
  
  Tips & Tricks: 
  It is important to ensure that the YMPE in SAP is updated each year when it changes. This will ensure that employees are not over- or under-contributing to their pension plans. 
  
  Related Information: 
  For more information on YMPE, please refer to the Canada Revenue Agency website at https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/pensionable-and-insurable-earnings/yearly-maximum-pensionable-earnings.html