PIER Review errors

Question

I have run the PIER review on 2 companies I do the books for and have errors in CPP on both companies. I have manually calculated the CPP on these pay cheques and all are correct, so I don't know why the report is showing a discrepancy. I used the "Recalculate taxes" for any pay cheques that I made adjustments to.

Keith L · Accepted Answer

HI Cheryl T, 
 Please follow the KB link below for discrepancies on the Year End Review (Pier) Report. 
 KB31161 - Discrepancies on the Year End Review (PIER) Report 
 Hope this helps.

MDP Books · Answer

It is a problem with the calculations. In the payroll module the CPP is calculated using the number of pay periods per year while the PEIR report calculates CPP on an annual basis. So if your employees do not work for the total number of annual pay periods then the CPP exemption is a portion of the annual $3500 while the PEIR report uses the whole $3500 exemption regardless of the number of pay periods worked. The regulation states that the calculation must be made this way and results usually in an overpayment of CPP and the employer portion is not refundable. You will probably receive a PEIR Discrepancy report from CRA to complete because of this. I hope this helps even though you asked awhile ago.

Sage 50 Canada

PIER Review errors

Top Replies

COMMUNITY

COMPANY

PARTNERS

SUPPORT & TRAINING