Hello All,
I am working on T4s. I run payroll for my clients in QBD and then issue the T4s in TaxCycle, not QBD (just my way of doing things).
I found the CPP calculated by Taxcycle under Adjusted is different than QBD, and doesn’t even doesnt match the regular calculations $3500 exemption then %5.95.
Has anyone faced something like that?
i dont want to override the adjusted to match the QBD calculations and submitted to CRA.
any advise is appreciated.
I have my own tiny spreadsheet built to calculate EI & CPP. I incluse a calculation for employees who have not worked a full year. If an employee worked 26 weeks out of 52, then the basic exemption is prorated, resulting in higher CPP required than if the exemption wasn’t prorated. I also include in my formula, the calculation for extra CPP on income over the threshhold. I have never had a PIER when doing this. the payroll program itself may be to blame if an employee has 2 pays with the same pay period. I’ve had clients who would make a normal cheque to an employee, plus a separate cheque for accumulated vacation pay. Sage (and I assume QBO) treats these as 2 separate pay periods and applies a portion of the annual exemption to each, resulting in not enough CPP being deducted. I’ve had small clients with over 50 T4’s to prepare. I go through my calculation for each employee, making corrections prior to submitting the T4’s. Sage has a nice function for submitting T4’s. Works very nice. I suspect QBO has the same. An office I worked at years ago used AvanTax to prepare T-slips. But, it’s easy to make a typo and have the whole effort be a waste of time.
It’s likely due to the number of pay periods affecting the exemption.
Yes, I think so, as I went back and checked that and it works fine on each paystub.