The Year End Review (PIER) report will identify CPP/QPP and EI discrepancies so that you can review and revise your payroll records before you produce employee T4 slips.
This report is based on the Canada Revenue Agency's (CRA) Pensionable and Insurable Earnings Review (PIER). The CRA checks the T4 slips you file to make sure that the CPP/QPP and EI amounts you reported are correct. Employee CPP/QPP and EI amounts are recalculated based on the pensionable and insurable earnings you reported. Any discrepancies between reported and calculated amounts for an employee are noted on a PIER listing.
If you receive a PIER listing from the CRA, you must explain all discrepancies and remit the balance due (including your employee's share).
For the best results, run the report after your last payroll for the calendar year, but before you print the paystubs or direct deposit employee pay. You can then investigate and correct discrepancies for affected employees before you issue them their final pay for the year.
If you run the report at any other time during the year, CPP or QPP discrepancies may be noted in error.
To calculate CPP/QPP payroll contributions, the annual basic exemption is divided equally over the employee's pay periods for the year. However, to report the employee's Expected CPP/QPP contribution on the Year End Review (PIER) report, Sage Simply Accounting uses the full amount of the annual basic exemption. Therefore, if the report is run during the payroll year, and an employee has not contributed the maximum CPP/QPP amount for the year, the Expected amount will be under-reported.
The report contains the following information (all amounts are year-to-date):
If the employee's pensionable earnings exceed gross pay, Expected CPP/QPP is calculated, and reported, on gross pay.
Any of the following alerts may be noted for an employee:
This note only appears if there is a discrepancy and the number of paycheques issued to date does not match the Pay Periods Per Year setting on the Income tab of the employee's record.
If pensionable earnings and gross pay differ, Sage Simply Accounting performs two CPP/QPP calculations: one on pensionable earnings, and the other on gross pay. If the actual CPP/QPP deducted (as reported on the T4 slip) more closely matches the gross pay calculation, this Note is displayed.
If insurable earnings and gross pay differ, Sage Simply Accounting performs two EI calculations: one on insurable earnings, and the other on gross pay. If the actual EI deducted (as reported on the T4 slip) more closely matches the gross pay calculation, this Note is displayed.
Note: Rounding of individual paycheque amounts may explain discrepancies up to $1.00. To prevent alerts due to rounding or to report only those discrepancies that exceed a threshold amount designated by the CRA, modify the PIER report to "Show only employees with CPP/QPP or EI discrepancies greater than" a certain amount. If you select this report option, the default threshold is $1.00.
To view this report, open the Report Centre in the Home window, select Employees & Payroll, and then Year End Review (PIER) . Click Display.
Modify the Year End Review (PIER) report
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