• The employee wasn't employed for the entire year
• The employee wasn't eligible for CPP deductions for the entire year
• The employee's CPP deduction status was turned off during the year
• The number of paycheques issued to the employee isn't equal to the number of pay periods
• The payroll tax tables aren't up to date

Option 1: Ensure that you have the latest tax table update

1. Click Help, About Sage 50, Support Info.
2. Look for the line that says Payroll Taxes Effective.
3. If payroll isn't in effect for your period, you need to install the latest update.
   • Available if you have a payroll subscription plan with Sage

Option 2: Check the pay periods

1. Open the employee records of the employee in question.
2. Click the Income tab.
3. Verify that the Pay Periods Per Year are correct.

Option 3: Verify if there's an extra bonus paycheque

1. If there was an extra bonus paycheque:
   • The number of paycheques is higher than the number of pay periods
   • That's why the CPP calculation is off
2. See How do I pay a bonus with the correct income tax withheld?

Option 4: Verify that the tax table for this employee is set in the correct province

1. Open the employee record of the employee in question.
2. Click the Taxes tab.
3. Verify that the Tax Table is set to the employee's residency province.

Option 5: Check the incomes/deductions settings

1. Go to Setup, Settings, Payroll.
2. Select Incomes.
   • Verify (with your accountant) that all incomes in use are set up with the proper checkmarks per CRA\Revenu Quebec requirements
3. Go to Linked Accounts, Incomes.
   • Verify that the incomes are linked to the correct accounts
4. Select Deductions.
   • Verify (with your accountant) that all deductions in use are set up with the proper checkmarks per CRA\Revenu Quebec requirements
5. Go to Linked Accounts, Deductions.
   • Verify that the deductions have been linked to the correct accounts

Option 6: Quebec Gross versus Federal Gross

1. The CPP is based on the Federal Gross income (on the bottom of your paycheque).
2. The QPP/RRQ is based on the Quebec Gross income (hidden).
3. Verify if the incomes (or deductions) are set for:
   • Federal gross: Calc Tax
   • Quebec gross: Calc. Tax (Que)
   • Check with your accountant if it should be either or both

Option 7: Check the base exemption amount

1. The CPP/QPP has a base exemption amount that needs to be taken off the gross annual amount.
2. For example, (this is just a formula. Don't use these numbers as rates always change):
   • Pay period is set for 26
   • The paycheque's gross is $1500.00
   • The employee's CPP/QPP rate is 5.175%
   • The base exemption amount is $3500.00
   • As a result, the correct CPP/QPP amount for a single paycheque should be: ((($1500x26) - $3500.00) / 26) x 0.05175 = $70.66
   • And not: $1500.00 x 0.05175 = $77.63

Option 8: Include the taxable benefits in the manual calculation

If you have taxable benefits set up for the employee in addition to the regular income, you need to include them in the manual calculation.