EI or QPIP Insurable Earnings and/or CPP pensionable earnings are not equal to Gross Earnings

This article provides step-by-step instructions on how to manually adjust an employee’s CPP deductions in Sage 50 Canada, including scenarios where CPP contributions need to be corrected due to setup errors or employee status changes. The guide covers accessing payroll settings, calculating the correct CPP amounts, and updating records to reflect accurate deductions.

This can occur for several reasons (including but not limited to the following):

• The employee has reached the maximum earnings for the category. The category will show the earnings required to reach the maximum and stop there, while the Gross Earnings will continue to accumulate.
• Manual adjustments to the amounts and Gross Earnings can cause mild fluctuations, particularly if the value was already maxed out.
• Minor rounding errors can occur when you enter a value manually.

All of the above earnings values can be corrected to the proper values on the T4 and RL-1 Reporting tab of the employee record:

1. In the Home window, click Employees & Payroll on the navigation pane.
2. In the Tasks pane, right-click the Employees icon and select Modify Employee from the menu.
3. Select an employee from the list and click OK.
4. Click the T4 and RL-1 Reporting tab
5. Modify the values in the current year to the correct values
6. Click Save and Close

Typically, these problems can be avoided if the Calculate Taxes Automatically button is used at all times. A subscription to Sage Business Care Payroll Plan will substantially reduce the likelihood of this problem occurring.

DocLink: Why are my pensionable earnings zero for an employee compared to others?