Hi IngridvT 

Thanks for reaching out regarding the CPP deduction issue for your employee in Sage 50 Canada. To correct the under-deducted CPP without impacting the employee financially, you can follow these steps:

1. Correct the Birthdate: Amend the birthdate in the employee's record to ensure correct CPP deductions going forward.

2. Adjust CPP Contributions: In your next payroll, manually adjust the CPP contributions to include the missed amount. Record the employer's portion separately so that the employee isn't affected.

3. Avoiding a Loan Entry: Instead of giving a loan, you can make a one-time adjustment for the employer's portion of CPP. This can be done by modifying the payroll deduction settings temporarily for the next pay period.

4. Ensure Compliance: Check with Sage 50 Canada support or a professional accountant to confirm that the adjustment is done according to CRA standards and that it's properly recorded in your payroll system.

Should you need more detailed instructions or help with the process, the 'Chat with support' feature within Sage 50 Canada will connect you with a support agent.

Warm Regards,
Erzsi

I couldn't just manually adjust the CPP, because the CPP underpayment was more than the employees current pay for this period. I ended up giving the employee a loan to cover the adjusted CPP and then forgave the loan. So now the CPP is up to date for the employee and the employers portion will also be up to date once I do the remittance.

Hi Ingrid. I have almost the same situation with one of our employees. The CPP was not deducted from his paycheck. Can you tell me how you fixed this issue in Sage? How did you post the loan in Sage? Was the loan the same amount as the missing CPP? Thank you.