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?
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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.
- Contribute to the Canada Pension Plan
- Methods of calculating deductions - CPP, EI, and income tax
- Payroll deductions and contributions
I hope that helps. You're welcome back anytime you have questions!
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.