There are a few possibilities why Canadian Pension Plan (CPP) and Employment Insurance (EI) are not calculating on your employee pay cheques.
Determine why CPP and EI are not calculating
Verify the correct employee information is entered
- In the menu bar, click Employees.
- Click Employee Centre.
- Double-click on an employee name .
- Click the Personal tab. Ensure that the correct SIN number and date of birth are entered. Note: CPP only calculates on employees between 18 and 70 years of age.
- Click the Employment Info tab. Ensure the correct hire date is entered.
- Click the Payroll Info tab. Click Taxes and TD1. Ensure the boxes are checked beside Employment Insurance and Canada Pension Plan.
Determine if an employee has reached their yearly CPP and EI contribution limits
Depending on the amount you are paying an employee, and what time of year it is, an employee may have reached the yearly limit for their CPP and EI contributions.
To determine what an employee's year-to-date contributions:
- In the menu bar, click Reports.
- Click Employees & Payroll.
- Click Employee Earnings Summary.
- Review what the employee has contributed so far in the calendar year.
- Cross-reference with the latest CPP and EI maximum limits from CRAs CPP contribution rates, maximums and exemptions article.
If an employee is over or at the limit, QuickBooks Desktop will cease to calculate amounts for these two source deductions.