Hi Penny L ,

Thanks for reaching out. I understand that you have an employee who reached the maximum on the first threshold of CPP, and you are wondering about the deductions for CPP2.

CPP2 will only begin to calculate once CPP has maxed out as detailed in this article. You should be able to see the CPP2 amount in the employee detail report. If the system didn't deduct anything from CPP2 after maxing out CPP, there might be a setting that needs adjustment. To troubleshoot:

1. Verify in the employee record under the Taxes tab that the correct checkboxes for CPP deductions are checked.
2. Ensure that the employee details are correctly updated for the new year, as per the Year-End Review instructions.

Here is a link to the Sage 50 CA English chat for direct assistance. If these deductions should appear on the same paycheque as when the first maximum is reached, but there is still additional earnings, this may be a setup issue within the payroll settings which the support team can help you resolve.

If this helps please mark it as verified :)

Warm Regards,
Erzsi

Everything is set up correctly - at the current pay period put the Employee at  67,687.51 in Earnings with it only taking the remaining CPP to complete the first threshold, shouldn't the system count the difference in Gross above 65000 towards the 2nd ceiling? or does the system wait until the 68,500 is reached because of the basic exemption?