CPP Short on Part Time Employees

evanscom · ‎April 11, 2019

I have a problem where CPP is calculating incorrectly for Part-Time Employees. They are not at times making enough to trigger cpp so at the end of the year their CPP Hours are wrong and so is the amount taken off. It is under funded. Is there a way to trigger an hourly rate CPP calculation?

Rochelley · ‎April 16, 2019

Do your part-time people make exactly the same wages each paycheque? If so, make your own calculation by taking what they will make annually, deduct $3,500 from annual wages and multiply by 5.1% = total CPP contributions owing by that Employee during the year. Take the annual CPP amount and divide by remaining pay periods, then manually insert the result into each pay cheque in the Employee Summary until the end of the year.

If they don't make the same amount each pay, then you would need to create a spreadsheet to calculate the CPP owing, and manually enter Employee's CPP into the Employee Summary on each pay cheque. I have attached a screenshot of someone working part time in 2019, and being paid bi-weekly. From cell F2 to F10, the following formula was used: =IF(E2>3500, E2*5.1%, 0), and copied down to the first cell where there is a result, in this case cell F10. Beginning in cell F11, the formula is changed to: =(E11-E10)*5.1%. Column F are the amounts you would enter each pay period for the employee's CPP, at which time QB will automatically calculate the Employer's portion as normal.

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LauraAB · ‎April 11, 2019

Hi evanscom,

Making sure your employees have the correct amounts for CPP deductions is an essential part of payroll. I have a few things you can try to make certain QuickBooks Desktop is calculating these deductions properly. The program deducts CPP for employees of all pay types as long as they meet the thresholds, so we'll need to do more troubleshooting to figure out what's going on.

The first is to verify you have the most recent tax table updates. The program pulls data for source deductions directly from the CRA and filters them into the payroll centre through these updates. Read the download the latest payroll tax table update article to see if you have the most recent one. Please note that current tax tables are only available on the newest editions of QuickBooks Desktop.

Next you can try the steps outlined in troubleshoot CPP and EI pay cheque deduction errors. This article also references the tax tables, but since you've already checked, you should be good to go in that regard.

To do more troubleshooting beyond this, please call our phone support team. The team is available at 1-877-772-9158, with Pro and Premier agents helping 24 hours a day and Enterprise agents on hand from Monday to Friday between 9 a.m. and 8 p.m. EST.

For your reference, here are a few articles from the CRA about CPP contributions.

I hope that helps. You're welcome back anytime you have questions!

Rochelley · ‎April 16, 2019

Do your part-time people make exactly the same wages each paycheque? If so, make your own calculation by taking what they will make annually, deduct $3,500 from annual wages and multiply by 5.1% = total CPP contributions owing by that Employee during the year. Take the annual CPP amount and divide by remaining pay periods, then manually insert the result into each pay cheque in the Employee Summary until the end of the year.

If they don't make the same amount each pay, then you would need to create a spreadsheet to calculate the CPP owing, and manually enter Employee's CPP into the Employee Summary on each pay cheque. I have attached a screenshot of someone working part time in 2019, and being paid bi-weekly. From cell F2 to F10, the following formula was used: =IF(E2>3500, E2*5.1%, 0), and copied down to the first cell where there is a result, in this case cell F10. Beginning in cell F11, the formula is changed to: =(E11-E10)*5.1%. Column F are the amounts you would enter each pay period for the employee's CPP, at which time QB will automatically calculate the Employer's portion as normal.

evanscom · ‎April 16, 2019

ThanK You Rochelley:

They do not make the same each week! Thank You for your solution.

Evanscom

CaroleM · ‎February 17, 2022

We have had a problem with CPP miscalculation by Quickbooks for years even for full time employees. Our issue is the number of paycheques issued dont match the payroll schedule. Most employees are Bi-weekly 26 pay periods but may get an extra paycheque (2 paycheques in one pay period). Quickbooks divides the annual exemption of 3500 by the payroll scheduled amount of cheques (26) so before calculating CPP on each paycheque, an exemption of 134.62 is removed. The bug is that Quickbooks will continue to deduct 134.62 on the actual number of paycheques issued and does not stop at 3500. So at year end if an employee received 2 extra paycheques (28) the exemption totals 3500 +134.62 + 134.62 and so the employee and employer have shortpaid. It would be nice if you would improve the software to limit the exemption regardless of paycheques issued.

Jen_D · ‎February 17, 2022

Thanks for posting your insights and feedback about the way QuickBooks handles payroll exemptions, Carole.

Please know that we would love to hear your requests or suggestions for QuickBooks Desktop. However, we can't provide the turnaround time if they will release additional preferences and enhancements. Our engineers work on product updates internally.

To add your product suggestions to our developers about our payroll preferences, go to the Help menu and select Send Feedback Online.

Reach out to back to me if you need further assistance while working with QuickBooks sale forms. I'm always here to help. Have a great rest of the day.

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CPP Short on Part Time Employees