Simply Accounting CPP & EI Deduction Calculations

Posted By Matthew De Steur 3 months ago

I am hoping that someone can explain why Simply Accounting is taking off so much CPP & EI that I reach the maximum contribution in the first six months of the year rather than taking off 24 equal deductions on each of my pay cheques throughout the year to reach the maximum contribution by end of the tax year.

Our accounting team cannot override the amounts that Simply Accounting is calculating but it does not make sense to me that I have to pay so much more for 6 months then the last 6 months CPP and EI are no longer deducted.

There is nothing in the tax law that I can find that my employer has to take the deductions in this manner.

0 Alwyn 3 months ago

The Sage 50 program is designed that way as are all payroll programs. Each pay period gross amount calculates what the CPP and EI will be for that one period. At any given time in the year Sage does not know what the annual gross will be as it might change during the year. You could quit, get a raise, go on an unpaid leave. All of which affects the yearly total. What Sage does know is the accumulated totals for CPP and EI and it stops the deductions when the maximums are reached. Standard stuff.
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0 The Software Coach 3 months ago

Matthew

Sage 50 and any payroll program/app and the PDOC CRA provides to calculate payroll deductions do the same thing. CRA sets the parameters for how much CCP and EI is taken off and when. I suggest you Google

T4001 Employers' Guide - Payroll Deductions and Remittances
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Simply Accounting CPP & EI Deduction Calculations

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