Hi Habsy:

As long as you have up your pay periods for 24 pays within the individual's payroll income folder the payroll taxes should not be affected. You can edit the pay cheques if you wish, but the results will be the same.

Because some pay periods is 1 week instead of 2 weeks. this person is paying $600-$800 in taxes. Is this amount normal for a $2300 net pay?

I think the system thinks he is making 120K/year instead of 60k/year.

We changed the pay period from 52 to 24 at end of October. From march to october, he was on the 52 week pay period. 

Hi Habsy:

You must standardize your payroll by pay period. You have the choice to set it up the way you want. However if someone is just getting random payroll payments willy-nilly then as far as CRA is concerned whether you are paying weekly, bi-weekly, semi-monthly, monthly or yearly for the payroll the rates apply even if they seem extravagant. You can try(test) the different pay periods with the employee and find the one that works best with the employee's annual income before posting.

Also check to see if the employee has asked for extra taxes to come off and has been entered into his tax master.

For December pay stub, sage omitted CPP and EI deductions. I think the system thinks this employee has reached the max contribution for 2020. 

But when I added all the deductions manually, either of those deductions have not reached the maximum contribution? 

Why did sage stop those deductions?

How would I fix this?

Hi Habsy:

Is your auto calculate turned off or are you entering manually without calculations? If the wage amounts are small there is no CPP and possibly no EI. If you have started to do payroll for 2021 Sage turns off the auto calculate function for 2020 and insists to the user to enter everything manually.

Hope this helps!

Hi Randy,

Thank you for all your replies!

Auto calculate was on the whole time.

Under this employee's profile, when I look under the taxes tab, it shows the YTD amount as the max CPP and EI limit. That is why It would have stopped for December. 

But when I add up CPP and EI contribution manually from each pay stub, those totals are less than the YTD totals saved in his profile. 

Hi Habsy:

You may be missing some pay stubs! Run an Employee Detail Report for 2020 and see what is missing!

Hope this helps!

Hi Randy,

Thank you again! Ran a report. Found that his RRSP contributions was also being charged CPP and EI. 

I found the missing amount. How would I fix this now? there is 6 pay periods with this issue. 

Hi Habsy:

For the 6 pay periods print a report for each employee that had CPP & EI charged on RRSP contributions. Reverse or void the erroneous pays. Go into Setup, Settings, Payroll, Deductions or Income depending upon where the RRSP is located and ensure the columns are unticked so RRSP is not taxed, click OK, then do your pay cheques again. Put the CPP and EI difference to Tax so the cheque amounts are the same. The employee will get the income tax back when their income taxes are submitted to CRA.

Another way after reversing or voiding the paycheques affected by the RRSP being taxed and correcting the Setup, depending upon on what difference is owed or not from the employee make a pay cheque to the employee or take it away on the next pay cheque. Ensure you code to the proper accounts for EI, CPP & Tax and ensure it is reflected in 2020.

If this is too complicated, please reach out to me and I would be more than happy to provide a billable service to solve your issue.

Hi Habsy:

For the 6 pay periods print a report for each employee that had CPP & EI charged on RRSP contributions. Reverse or void the erroneous pays. Go into Setup, Settings, Payroll, Deductions or Income depending upon where the RRSP is located and ensure the columns are unticked so RRSP is not taxed, click OK, then do your pay cheques again. Put the CPP and EI difference to Tax so the cheque amounts are the same. The employee will get the income tax back when their income taxes are submitted to CRA.

Another way after reversing or voiding the paycheques affected by the RRSP being taxed and correcting the Setup, depending upon on what difference is owed or not from the employee make a pay cheque to the employee or take it away on the next pay cheque. Ensure you code to the proper accounts for EI, CPP & Tax and ensure it is reflected in 2020.

If this is too complicated, please reach out to me and I would be more than happy to provide a billable service to solve your issue.