Summary
EI employee deduction amount is incorrect in Sage 50 Accounting. When manually calculating the Employees gross pay x current EI rate, there’s a discrepancy.
Cause
- Incorrect payroll settings
Resolution
CAUTION: Sage support can't assist with third-party products, hardware, report customizations, or state and federal tax questions. Refer to our Scope of Support for more info. Contact your Sage business partner, network administrator, or accountant for assistance.
- Compare the tax calculations to the Canada Revenue Agency (CRA) Payroll Deduction Online Calculator (PDOC)
- Base the calculations off of the Gross Pay and not Net Pay
- If the calculations in Sage 50 match the PDOC calculator results, they're correct
- Speak with a certified accountant / CRA to validate the employee setup
- Go to Setup, Settings, Payroll, then Incomes.
- Verify that the required Incomes have the Calc EI checked.
- Select Setup, Settings, Payroll, then Deductions.
- Check the Deduct after EI column or uncheck as appropriate.
- Not checking the EI deduction column excludes the deduction amount from the EI calculation
- Verify the tax table settings are in the correct province. (Quebec has different EI rates compared to the rest of Canada).
- Go into the Employee Records, Taxes tab
- Change tax table if wrong