Troubleshoot the following in order:

Check payroll settings

1. You need a Sage 50 Payroll plan to calculate taxes automatically on paycheques.
   • Contact Sales at 1-888-261-9610 to purchase a Payroll plan
   • Alternatively, you can calculate the CPP and other taxes manually
2. Ensure that the company file isn't in history mode.
   • Automatic tax calculation isn't available in history mode
3. Ensure that you haven't rolled your session date into the next calendar year.
   • Moving to the next calendar year stops automatic tax calculations for the previous year
4. Go to Setup, Settings, Payroll, then Incomes.
5. Place a checkmark in the column Calc CPP/QPP for the income you use.

Enable automatic tax calculation

1. Go to Employees & Payroll, then Paycheques.
2. Click the Calculate Taxes Automatically button ().
3. Verify the taxes are now calculating correctly.

Check the employee's age

1. Go to Employees & Payroll, then Employees.
2. Locate the employee in question.
3. Double-click the employee name to open the Employee Records.
4. Click the Personal tab.
5. Verify that the Birth Date is correct.
6. There are exemptions based on the age of the employee:
   • A minor doesn't pay CPP/QPP until the month after their 18th birthday
   • CPP will stop calculating for employees who turn 70 on paycheques dated a month after their 70th birthday
     • This will also result in higher taxes due to having a larger amount of taxable gross pay
   • Employees who turned 72 at the end of the previous year will automatically stop contributing to the QPP

Check the pay periods

1. Go to Employees & Payroll, then Employees.
2. Locate the employee in question.
3. Double-click the employee name to open the Employee Records.
4. For Quebec QPP, select the Taxes tab and make sure the Tax Table selected is Quebec.
5. Select the Income tab.
6. Verify that the number for Periods Per Year is correct.
7. CPP only starts to calculate when the total amount for This Period on the paycheque is higher than a specific amount.
   • The current calculation for the specific amount is 3500 ÷ the number of pay periods
      EXAMPLE: 3500 ÷ 26 pay periods = $134.62. Therefore the gross pay must be higher than $134.62 to calculate CPP
   • If the total amount is under, CPP won't calculate

 NOTE: Selecting 1 pay period when the employee receives several paycheques throughout the year will cause an incorrect tax calculation.

Verify that you haven't reached the maximum CPP and or pension earnings

1. Go to Employees & Payroll, then Employees.
2. Locate the employee in question.
3. Double-click the employee name to open the Employee Records.
4. Select the Taxes tab to see if the YTD Amount has reached the maximum.
5. Select the T4 and RL-1 Reporting tab.
   • If the Pensionable Earnings box is blank, Sage 50 Accounting will ignore it
   • If there's an amount, the program will check to see if it has reached the maximum
   • CPP will stop calculating when the amount has reached the maximum