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Troubleshoot CPP or EI paycheque deduction errors

SOLVEDby QuickBooks4Updated over 1 year ago

There are a few possibilities why Canadian Pension Plan (CPP) and Employment Insurance (EI) are not calculating on your employee paycheques.

Determine why CPP and EI are not calculating

Verify the correct employee information is entered

  1. In the menu bar, select Employees.
  2. Select Employee Centre.
  3. Double-click on an employee name.
  4. Select 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.
  5. Select the Employment Info tab. Ensure the correct hire date is entered.
  6. Select the Payroll Info tab. Choose 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 an employee's year-to-date contributions:

  1. In the menu bar, select Reports.
  2. Select Employees & Payroll.
  3. Select Employee Earnings Summary.
  4. Review what the employee has contributed so far in the calendar year.
  5. Cross-reference with the latest CPP and EI maximum limits from the CRA's CPP contribution rates, maximums, and exemptions article.

If an employee is over the limit, QuickBooks Desktop will stop calculating amounts for these two source deductions.

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