Troubleshoot Discrepancies on the Year End Review (PIER) Report

The report's Expected CPP/QPP and EI calculations assume that the employee was employed and eligible for CPP and EI deductions for the entire year.

In the following cases, the discrepancy calculation may be incorrect:

• Employee was hired partway through the year or their employment was terminated during the year
• Employee turned 18 during the year
• Non-Quebec employee turned 70 during the year
• Casual or part-time employee earns less than the CPP/QPP pay period exemption in a given pay period

In these cases, you should do a manual calculation to determine the accuracy of the year-to-date CPP/QPP and EI deductions.

For example, if an employee under the age of 70 has started to collect CPP benefits, you may have turned off the Deduct CPP/QPP setting on the employee's record to prevent CPP from being deducted from the employee's pay.

Perform a manual calculation to determine the accuracy of the year-to-date CPP deduction.

For example, you may have issued a bonus cheque to an employee who has not paid the maximum annual CPP/QPP or EI deduction amount. If the total number of cheques issued to the employee (including the bonus cheque) exceeds the Pay Periods Per Year setting on the employee's record, the deductions calculations on the bonus cheque may be incorrect.

Perform a manual calculation to determine the accuracy of the year-to-date CPP/QPP and EI deductions.

For example, an employee who reports to work at an employer's Ontario business office, moves to Quebec partway through the year, and is then paid from the employer's Quebec office. In this case, Sage 50 Accounting will base the Expected CPP/QPP calculation on the current Tax Table selection in the employee's record.

Perform a manual calculation to determine the accuracy of the year-to-date CPP/QPP deductions.

When you process an employee paycheque, Sage 50 Accounting back-calculates EI insurable earnings from the EI deduction amount. If you manually enter an incorrect deduction amount, the insurable earnings will most likely be incorrect as well.

For each affected employee, review all paycheques on which you manually entered or adjusted an EI deduction amount.

If you converted your payroll records to Sage 50 Accounting partway through the calendar year, you may have entered incorrect historical amounts for an employee.

If you are still in history mode, open the affected employee's record and then review historical amounts entered on the Income and T4 and RL-1 Reporting tabs. Make any necessary corrections.