Release type: System Update / Bug Fix
Applies to: Canadian payroll customers
This release focuses on refining Canadian year‑end reporting and the handling of TD1 additional tax adjustments. These updates are designed to better align system outputs with CRA technical specifications.
Action required: 🔧 Key Actions After Updates: Understanding How Bundle Updates impact roles and Center Tab
Good to know: Roles and Permissions After Updates – Bundled vs Custom Roles
1. T4 Reporting – CPP2 Data Categorization
What? CPP2 amounts (the second level of CPP contributions) were previously sharing a reporting code with standard CPP, which could cause overlapping data in T4 preparation.
What has changed? We have updated the system’s internal mapping to separate these two contribution types.
What this means for you: Your T4 data will now reflect CPP and CPP2 as distinct amounts, supporting clearer year-end reporting. Action required: No action required. Records have been updated automatically.
2. T619 XML – Company Name Formatting
What was the issue? Company names exceeding 30 characters could cause the T619 XML file (used for electronic filing) to exceed the CRA’s character limits, potentially leading to file rejection.
What has changed? The system now automatically limits transmitter names to the maximum length allowed by the CRA’s 2026 technical specifications.
What this means for you: This reduces the need for manual XML file edits for companies with long legal names.
Action required: No action required. This formatting will apply automatically during XML generation.
3. TD1 – Negative Additional Tax Adjustments
What? In certain scenarios, negative "additional tax amounts" entered on an employee’s TD1 were not being consistently subtracted from the total tax withheld during pay processing.
What has changed? Calculations have been updated to ensure that negative TD1 values are recognized and applied to reduce tax withholding as intended.
What this means for you: Negative additional tax amounts will now be factored into payroll calculations to reduce the tax taken from the employee's pay.
Action required (If you utilize negative TD1 adjustments): * Review: Verify the TD1 records for any employees currently using negative additional tax amounts.
Verify: As a best practice, review your first pay run following this update to ensure the tax reductions meet your expectations.
Disclaimer: While these updates are designed to assist with filing and calculations, employers remain responsible for the accuracy of all payroll data, tax withholdings, and final submissions to the CRA. We recommend a thorough review of all reports prior to filing.