WHY on Employee's T4 CPP (Box 26) & EI (Box 24) insurable Earnings does not match box 14 - WHY?

Hi there Krista,

Welcome to the QuickBooks Community! Ensuring accuracy when preparing T4s is crucial. It's great that you're looking to make sure your numbers are correct, and I want to assist you with that.

Our article on T4 and Relevé-1 forms goes into detail on how you can process and make adjustments to your T4s, and how to make changes to specific boxes if necessary. Since the discrepancy doesn't seem to make sense, reaching out to our team of support experts is going to be the best approach to getting this sorted. They'll be able to do a screen share and make use of their myriad of tools to help pinpoint the source of the problem and help you with making the recommended adjustments. Please Contact Us when it's convenient for you so you can get to the bottom of this.

I see that you've posted on another thread, so I'll share this response with you there as well. Have a great week!

Hello @kristaatsl ,

It sounds like some of your payroll items may not be set up correctly.  The only time there should be a difference between the earnings in Box 14 and CPP & EI insurable earnings is:

1. Box 14 includes a  type of earnings which are not CPP or EI insurable i.e. group insurance benefits are CPP insurable but not EI insurable and this must be reflected in the set-up of your insurance benefit payroll item.  The result is that the amount in the box for EI insurable earnings will be less than Box 14, presuming the employee has not reached the maximum.

2. The employee has reached and exceeded the maximum CPP or EI insurable earnings for the year.  In both cases, the amounts in CPP and EI insurable earnings should never be more than Box 14, but rather less.

Being that you say the amounts in Box 24/26 are higher than Box 14, leads me to think that there is a payroll item (likely not a main item like Hourly Wages or Salary) that has not been set up to track to Box 14.  The likely culprit is a taxable benefit that should be tracking to Box 40 - Other Taxable Benefits (which then will automatically be added to Box 14).  If your non-cash taxable benefits are not set to track to Box 40, then your Box 14 could be lower than Boxes 24/26.

You may have already discovered this by now, but thought it might help.

Thanks so much Rochelley, I am going to look again at the set up...thank you so much for your input.  Sincerely appreciate it. 

Krista 

hi rebecca..when i processed the t-4's the CPP ins Earnings didn't calculate properly. 1 had $4,000 per month gross and box 14 shows $48,000 and cpp box 26 only reports $28,000. the other t-4 has $81,000 and box 26 cpp only shows $41,000 but should show $61,600

After talking to a Qbks expert @ Intuit, this is the link he sent me to explain why this problem occurs.  What am I missing here because there is no explanation or fix..at least the ded'ns look ok and it shows the max ded'n as well

hi all ,

is it possible that box 24 is higher than box 14 since the company pension plan is added in box 24 but not in box 14 , it is a non taxable benefit and should not e added to box 14 ?

thanks 

Hey there Sandy I,

Thanks for joining the QuickBooks Community. I can see my colleague has responded to your question in another post, click here to view the reply.

Feel free to reach back out if you have any other questions.