• An income or deduction doesn’t have a checkmark to calculate EI
• Entering manual maximum EI insurable earnings in the employee record
• Manually modifying EI deduction paycheques resulting in an overpayment
• The payroll update wasn't active before the first set of paycheques for the year
• The automatic payroll plan isn't active

Create a backup of the data file before you begin troubleshooting.

Check the automatic payroll subscription

1. Go to Help, Update Service Plan.
2. Click Check service plan.
3. If you don’t get the message "Thank you for purchasing a service plan that includes payroll", then contact sales at

    

    888-261-9610.

Verify EI checkboxes

1. Verify (with your accountant) that all incomes (or deductions) settings for EI are correct.
2. Go to Setup, Settings, Payroll, then Incomes.
3. Check that the Calc EI applies where CRA requires.
4. Click Setup, Settings, and then Payroll, Deductions.
5. Verify that you’re deducting after EI and not before EI calculation where CRA requires.
6. Sage 50 doesn’t calculate EI on the non-changeable Benefits income but does calculate CPP Pensionable Earnings.

Example

Check the EI insurable earnings amount

1. Verify there’s no manual cap of the EI Insurable Earnings.
2. Open an employee record.
3. Click the T4 and RL-1 Reporting tab.
4. For the year in question, verify if the EI Ins. Earnings amount is wrong.
5. If it’s incorrect, manually update it and click Save and Close.

Create a year-end EI adjusting paycheque to offset manual calculations

1. If the payroll year is already over and there are no more paycheques to process, create a backdated (DEC 31) adjustment paycheque.
2. Manually edit the EI amount to lower or increase as necessary.
3. Post the paycheque.
4. If this affects your bank account, make the necessary general journal entry. If unsure, contact your accountant.
5. If the payroll year isn’t over and there are future paycheques to process, adjust the next employee paycheque. Adjust the total EI amount for the year on this paycheque.

You didn't have the payroll update before the first set of paycheques for the year

1. The payroll year is already over and there are no more paycheques to process: Create a backdated (DEC 31) paycheque and zero out everything.
2. Manually edit the EI amount to lower or increase as necessary.
3. Post the paycheque.
4. If this affects your bank account, make the necessary general journal entry. Consult an

   accountant for assistance with this.

5. If the payroll year isn’t over and there are future paycheques to process, adjust the next employee paycheque. Adjust the total EI amount for the year on this paycheque.