cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Created with Sketch. Find out how to upgrade your subscription, manage your password, view account fees, request a refund, and much more on our account management page.
Created with Sketch. If you're experiencing a bank error, check our Bank Feed Status page before you call support.
Created with Sketch. Visit this page to subscribe to QuickBooks Status notifications.
annaliza-lospe
Level 1

A CPP deficiency was calculated by CRA when we submitted our T4s. How did this occur in QBO when payroll deductions are calculated automatically?

 
6 Comments 6
AndréB
Level 7

A CPP deficiency was calculated by CRA when we submitted our T4s. How did this occur in QBO when payroll deductions are calculated automatically?

Hey annaliza-lospe,

 

I'm glad to see you've been able to submit your T4s with time to spare. Tax season is hectic for employers of all sizes, but the payroll solutions available in QuickBooks Online are designed to make this easy. These calculations use tax tables obtained directly from the CRA to provide consistent and accurate results, so what you've described is unusual. The system uses unique details from your employees' profiles to ensure the correct rates are applied at all times. The easiest way to know why this particular discrepancy has occurred is to reach out to our payroll expert team. Choose form the options below to contact an agent, and they'll be happy to take a look at your account to get to the bottom of this.

 

Phone and Chat: Click Contact Us to learn how to reach phone and chat support.

Schedule a Callback: click (?)Help in the upper right > click Contact Us > explain your situation > click Let's Talk > choose Get a callback (Note: Callback hours are the same as regular phone hours.)

Social MediaFacebookTwitter, and Instagram from Monday to Friday between 9 a.m. and 8 p.m. ET

 

Don't be afraid to get in touch! I want to make sure everything is recorded correctly going forward.

bonnie-eadle
Level 1

A CPP deficiency was calculated by CRA when we submitted our T4s. How did this occur in QBO when payroll deductions are calculated automatically?

I have the same issue, its a small amount but its the first time we've ever had this happen. Will be reaching out to the payroll expert team.

JamesM4
QuickBooks Team

A CPP deficiency was calculated by CRA when we submitted our T4s. How did this occur in QBO when payroll deductions are calculated automatically?

Hi bonnie-eadle. Great to have you chime in on this post. I'd also recommend contacting our payroll support team about this. Feel free to keep me posted on how you make out. I'll be one message away.

bonnie-eadle
Level 1

A CPP deficiency was calculated by CRA when we submitted our T4s. How did this occur in QBO when payroll deductions are calculated automatically?

Not impressed with your telephone support, are they recorded? I hope so... when I got ahold of a payroll 'expert' he started with accusing me of having entered something wrong. Since I don't 'enter' anything, the software creates the deductions, I asked him to be a little more helpful. Could he do an audit or something to tell me where the issue occurred? He literally left me on hold for 50 minutes and then disconnected the call.

Then I got this cryptic email, I have no idea what this means:

 

sorry the call got dropped ,

Its suggest to run the reports against the remittances and narrow down where the difference came from and also there will need to be an adjustment made to balance the books . I would also recommend speaking with your accountant

Thank you and have a wonderful day!
Sujeeta.
Intuit QuickBooks Online Canada

JamesM4
QuickBooks Team

A CPP deficiency was calculated by CRA when we submitted our T4s. How did this occur in QBO when payroll deductions are calculated automatically?

Glad to hear back from you. I appreciate you spending time reaching out about this. Rest assured, all our calls are recorded for quality purposes. It's important you get the support you need with this and I'd like to provide that but since we're on a public platform, I'd recommend contacting our support team again. This ensures you get assistance in a private and secure environment. You're more than welcome to reply to the email sent to you by the representative you spoke with or you can also reach out again. Let me know how you make out. I'll be one message away.

Rochelley
Level 8

A CPP deficiency was calculated by CRA when we submitted our T4s. How did this occur in QBO when payroll deductions are calculated automatically?

Hello @annaliza-lospe ,

 

Unfortunately, this can happen and is most common when an employee works part time or has very sporadic earnings from one pay period to the next.  It can also happen when any extra pay cheques are issued for specific purposes, like bonuses ,retroactive pay or a termination pay cheque which is paying out Vacation Pay, etc..  In my experience, the payroll software applies the CPP exemption as though it is a regular pay cheque on the "extra" cheques as well, causing CPP deductions to be underfunded.

 

This is why it is always a good idea to do an annual CPP (and EI) check at year end on total annual earnings to make sure that the correct amount of CPP and EI has been deducted and remitted.  Ideally, this would be done just before the final PP of each year so that any necessary adjustments can be made on the final pay for  employees where there is a discrepancy.  This is easily done using a spreadsheet and some simple formulas, with an end column that reveals discrepancies.

 

Here is a sample screen shot of my CPP verification at YE, based on 26 Bi-Weekly Pay Periods a year.  The colored columns are all calculated fields and the white columns are variable data entered by me.  Note that the two items highlighted in yellow are for people who were not with us for a full year and for whom I needed to create a final pay cheque to pay out vacation pay, etc.  It is these final and "extra" cheques that caused the CPP to be out of whack, so I was able to correct it using Payroll Liabilities adjustments to ensure that I had remitted the correct amount on the last payroll remittance of the year.  I had already made the adjustments so the amounts in column L are now correct in this example.

 

 

CPP Verification at YE.png

 

I hope this helps shed some light on why there may be CPP discrepancies.  The same can happen with EI so I encourage you to put into place some kind of CPP / EI verification process for year end and prior to hitting the button on the final pay of the year.

 

If you would like a copy of the spreadsheet, please PM me.

 

Best of luck to you :)

Need to get in touch?

Contact us