Group RRSP Contributions

If you are providing a Group RRSP plan for your employees, you can easily set up RRSP contributions using our easy Pay Rules. Group RRSP plans may be mandatory in your province for certain organizations. 

First, determine who is contributing: the employee, the employer, or both.  Then follow the steps below to set up each scenario: 

Employee Contributes 

Step 1. Go to Company Settings 

Step 2. Click on Pay Rules 

Step 3. Select the Deductions tab 

Step 4. Click Add New Rule 

Step 5. Fill the Name, Description, and GL of the New Rule 

Step 6. Click on Save 

Step 7. Check the boxes for Enabled and Reduce Taxable Gross. This can help reduce the amount of taxable income for the employee. 

Step 8. Click on Save 

The funds will be deducted from your employee’s pay, and you will need to send them into your Group Plan Administrator. 
 
If you do not have a group RRSP but the employee contributes to their own RRSP, you can also check off Non-Cash in the deduction rule.  This will simply reduce taxable income, but the employee will keep the cash.  It is your responsibility to ensure at year end that the amounts that were deducted were in fact submitted by the employee to their RRSP. A statement of their contributions to their plan will satisfy this. 
 
To implement the new deduction rules for specific employees, navigate to the Employees section: 

Step 9. Go to Employees 

Step 10. Click the three dots 

Step 11. Select Profile 

Step 12. Select Payroll 

Step 13. Under the Vacation section, Click the > to edit 

Step 14. Click Add Deduction + 

Step 15. Click on the Deductions dropdown. 

Step 16. Choose RRSP Employer Cont. 

Step 17. Add the $ or % amount for the employee’s contribution per pay.  

Step 18. Click on Save 

Employer Contributes 

For this to work you need a Benefit and Deduction rule combination. 

Step 1. Go to Company Settings 

Step 2. Click on Pay Rules 

Step 3. Select the Deductions tab 

Step 4. Click Add New Rule 

Step 5. Fill the Name, Description, and GL of the New Rule. 

Step 6. Check the box for Enabled and Reduce Taxable Gross. This can help reduce the amount of taxable income for the employee. 

Step 7. Click on Save 

Step 8. Click on Benefits 

Step 9. Click on Add New Rule 

Step 10. Enter New Rule Name, Description, and GL Code 
 
Step 11. Check Enabled to have the rule run in every pay run 
 
Step 12. Select the check boxes for CPP, EI, Federal Tax, and Provincial Tax 
 
Step 13. Click Save 

Step 14. Go to Employees 

Step 15. Click the three dots 

Step 16. Select Profile 

Step 17. Click Add Benefit + 

Step 18. Click on the Deductions dropdown and choose RRSP Employer Cont 

Step 19. Add the $ or % amount for the employee’s contribution per pay 

Step 20. Click on Save 

Step 21. Go back to the Payroll section 

Step 22. Select Deductions 

Step 23. Click on Add Deduction + 

Step 24. Click on educations dropdown and choose RRSP Employer Cont. 

Step 25. Add the $ or % amount. 

Step 26. Click on Save 

Hint: the benefit amount and deduction amount for the employer portion should be exactly the same. 

Both Employee and Employer Contribute 

Follow the steps for both instances above to create all 3 rules (employee deduction, employer benefit, and employer deduction). 
Use the Pay Explorer Report with Report Type custom to select these rules to run a report to see what you need to contribute to your plan.