Pensionable earnings

SUGGESTED

When a payroll report is generated, a comment prints at the bottom of the report that says "Federal and Quebec Pensionable Earnings - not subject to annual maximum."  CPP contributions are calculated correctly in Sage but the pensionable earnings amount in Sage is not recognizing the maximum pensionable earnings per CRA.  Sage continues to add earnings to the pensionable earnings amount in excess of the CRA maximum amount.  Has anyone else seen this?  

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    SUGGESTED

    Hi  ,

    Thanks for reaching out. If Sage 50 continues to add earnings to the pensionable earnings amount even after reaching the CRA maximum amount please follow these steps:

    1. Adjust Pensionable Earnings: see this article for details

      • Go to Employees, select the employee, and open the T4 and RL-1 Reporting tab.
      • Here you can enter or correct the Pensionable Earnings for the Current Year and Prior Year.
      • Save your changes and verify that the T4s print correctly.
    2. If EI, QPIP, or CPP Earnings Differ from Gross Earnings:

      • This discrepancy can happen if an employee has reached the maximum earnings category or due to manual adjustments or minor rounding errors.
      • To correct this, from the Home window, select Employees & Payroll, modify the employee, and update the values in the T4 and RL-1 Reporting tab to the correct values.
    3. For Pensionable Earnings Showing as Zero:

      • If an employee is under 18 or over 65-70, they do not pay CPP and thus will show no pensionable earnings.
      • Verify the employee's birthdate is correct in their Personal tab. If their birthdate falls in the middle of the year, CPP deductions to zero will not take effect until the full paycheque period after they are over the age of entitlement.

    Using the 'Calculate Taxes Automatically' function can prevent many of these issues, and a subscription to Sage Business Care Payroll Plan is recommended to reduce such occurrences.

    If after these steps the issue persists, please contact support directly for further assistance.

    Warm Regards,
    Erzsi

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    I have found this when printing off detailed employees' report for the year. However, when I processed the T4 the correct maximum CPP earnings did show on the T4. 

    Heather