Registered Retirement Savings Plan (RRSP) / Deferred Profit-Sharing Plan (DPSP)

Follow the instructions below to create your RRSP payroll categories. If the RRSPs do not have an employee-contribution, feel free to skip that section. 

Creating an RRSP Payroll Category (Employee Contribution)

If your employees do not contribute to RRSPs, feel free to skip this section. 

1. In Harmony, navigate to Payroll Setup > Payroll Categories. 
2. Click "+ New" to create a new payroll category. 
3. As this is the employee contribution, create a Permanent Deduction. 
4. If you want to add this payroll category by default to new employees, toggle on "Entitlement: Default to new employee".
5. Enter the "Code", "Name", and "Paystub Abbreviation" to identify the payroll category. You can follow the same default coding pattern for deductions - the 400 series. 
6. If it is a fixed amount for all employees, enter an "Amount". If each employee contributes a different amount, leave this field as "0.00". If it is a percentage of the employees' gross earnings, you will need to create a formula. 
7. If there is a maximum that can be contributed, toggle on "Maximum" and enter the correct maximum amount.
8. Identify which taxes this payroll category is subject to on the right side. 
9. Click save to save your new payroll category. The system will ask if you want to assign this payroll category to all active employees. You can click "Yes" (to assign to all active employees now) or "No" (to assign them to particular employees later).

Creating an RRSP Payroll Category (Employer Contribution)

1. In Harmony, navigate to Payroll Setup > Payroll Categories. 
2. Click "+ New" to create a new payroll category. 
3. As this is the employer contribution, create a Permanent Benefit. 
4. If you want to add this payroll category by default to new employees, toggle on "Entitlement: Default to new employee".
5. Enter the "Code", "Name", and "Paystub Abbreviation" to identify the payroll category. You can follow the same default coding pattern for benefits - the 200 series. 
6. If it is a fixed amount for all employees, enter an "Amount". If each employee contributes a different amount, leave this field as "0.00". If it is a percentage of the employees' gross earnings, you will need to create a formula. 
7. If there is a maximum that is contributed, toggle on "Maximum" and enter the correct maximum amount. 
8. Identify which taxes this payroll category is subject to on the right side. 
9. Click save to save your new payroll category. The system will ask if you want to assign this payroll category to all active employees. You can click "Yes" (to assign to all active employees now) or "No" (to assign them to particular employees later). 

Setting Up Tax Form Boxes for RRSP

After you create the payroll categories, you must assign them to any applicable tax form boxes. For example, Box 20 on your T4s and Box D on your RL-1s for the employee contribution. 

1. In Harmony, navigate to Payroll Setup > Assign Tax Form Boxes. 
2. Look for the employee-contributed RRSP payroll category you created in the previous section (Creating an RRSP Payroll Category (Employee Contribution)). 
3. Click the three (3) dots to look into the available tax form boxes for the payroll category. 
4. Activate Box 20 for T4s and Box D for RL-1s (if applicable). 
5. Click save to save your changes. 
6. Repeat steps 2 through 5 for the employer-contributed RRSP payroll category you created in the previous section (Creating an RRSP Payroll Category (Employer Contribution)) for Box 40 on your T4s (OTHER) and Box D on your RL-1s (if applicable).

Assigning your RRSP Payroll Categories to Employees

After you create the payroll categories, you must assign them to your employees' master paycards. 

1. In Harmony, navigate to Payroll Setup > Assign Payroll Categories. 
2. In the first dropdown field, select the payroll category you just created in the previous sections (Creating an RRSP Payroll Category (Employee Contribution) and/or Creating an RRSP Payroll Category (Employer Contribution)). 
3. You can assign the payroll categories to employees in several different ways:
   1. To add these payroll categories one at a time to each employee: In the second dropdown field, select the applicable employee. Enter the "Amount" and click "+Add". Repeat step 2 and 3a for the other RRSP payroll category if required. 
   2. To add these payroll categories to an entire payroll group: Click "Assign to payroll group", checkmark the payroll group, and click "+Add". Repeat step 2 and 3b for the other RRSP payroll category if required. 
4. If you've already assigned the payroll categories to your employees, you can also edit all the amounts for the employees in the same screen. Simply click the pencil icon for each employee to enter their respective "Amount".