YTD CPP & EI Discrepancy Adjustment
During the busy tax season, no one knows the pains of responding to Pensionable & Insurable Earnings Reviews (PIERs) from the CRA more than our valued users. As your partner in payroll, we built a tool to help you correct any deficiencies in your CPP & EI Remittances, helping you avoid those time-consuming PIERs!
Please note that the YTD CPP & EI Deficiency Adjustment Tool can only adjust deficiencies or under-deductions; overpayments may not be adjusted using this tool.
- Open Run Payroll --> Run Payroll, and select YTD CPP & EI Deficiency Adjustment Tool
- Select the Paygroup you are running the adjustment for from the drop-down menu
- Select a paydate from the Paydate drop-down menu. Please ensure the pay date is set ahead of any pending pay runs' pay dates.
- Chose a start date from the Pay Period From drop-down menu
- Next, choose an end date from the Pay Period To drop-down menu
- Select Continue to proceed to the Adjust CPP/EI page
- The selected dates and paygroup for the adjustment will be displayed under the page heading
- Employees who are turning 18 or 70 years old, exempt, terminated or hired during the current payroll year will be listed above the adjustment tool.
- The Adjustment tool will list the Employees' YTD pensionable & insurable earnings, YTD CPP & EI contributions and calculated YTD & CPP amounts.
- The Deficiency column will display the calculated deficiency for CPP & EI. You can modify the amounts in the Deficiency column.
- When you enter amounts in the Employee CPP/EI deficiency columns, the Employer CPP/EI columns will automatically populate
- Select Review to proceed to the Review page
- The Debit Date will be listed at the top of the page. Knit will withdraw the funds on this date.
- The What Gets Taxed and Debited section lists the amount for each deduction and the total amount that will be debited from the account.
- The Impact on Employees section will list the amounts added to their YTD CPP & EI balances and their new YTD balances after the adjustment is complete.
- The What your Company Pays section will list the employees included in the adjustment and the total amounts debited for CPP & EI.
- Once you have reviewed the summary and confirmed that the details are correct, select Approve Adjustment; you will receive a confirmation message.
Off-cycle Payrolls and CPP Discrepancies
We recommend using the YTD CPP & EI Deficiency Adjustment Tool if you have processed an Off-cycle Payroll. Our Off-cycle payrolls apply the annual CPP exemption to payments and some of those payments should not have the exemption applied. For example, the annual exemption should not apply if you have used an off-cycle payroll because of missing hours, retro payment, bonus pay or vacation pay. You can use the YTD CPP & EI Deficiency Adjustment Tool to calculate and remit any potential deficiencies. The CPP exemption will apply if you used an off-cycle payroll run because of a missed employee during the regular payroll.