Thanks so much. Your information showed me why I had the discrepancy.

Hi Mhbc,

If any suggestions provided in this thread is able to help you resolving your issue, would you please click the 'Yes' button to the question - 'Did this answer the question?'  The thread will be marked as answered, which will benefit other users who have the same issue.  Thanks a lot.

Hi Mhbc,

If any suggestions provided in this thread is able to help you resolving your issue, would you please click the 'Yes' button to the question - 'Did this answer the question?'  The thread will be marked as answered, which will benefit other users who have the same issue.  Thanks a lot.

"The Sage 50 payroll update wasn't installed prior to the first set of paycheques for the year"

In other words, it is still the case that the program back-calculates the EI insurable amount based on the deduction taken? So if your payroll is out of date (you are doing manual checks) and the EI rate has changed since the year you last paid for payroll - 2010, for example, the "EI insurable amount" is calculated using the tables for 2010.

This year, (made up example) a salary of 1000.00 warrants a deduction of $45

Simply looks up the $45 in the 2010 table which was a deduction for 1085.00

VOILA -  your EI insurable amount is out of whack.

This will happen whether you

- have stopped paying for payroll altogether (the amounts are calculating from your last installed tables)

- or you are simply late installing your PUP for the new year - whatever checks you cut in the interim will cause the amounts to be off (unless there has been no rate change since last year).

The logic behind them calculating it this way (instead of EI insur = income) has to do with employees hitting maximum. If you enter a final smaller deduction on the pay where they hit max, or a $0 deduction on pays afterwards, the 'EI insurable amount' for those pays is indeed no longer equal to the gross income.  

If they don't make 'EI insurable' a field that can be entered/adjusted at the time of each paycheck issuance, then the only thing you can do is adjust it manually on the employee's record 'T4 and RL-1 Reporting' tab.