Problem:
My employees have reached their maximums for CPP and/or Employment Insurance but the program continues to deduct CPP/EI from their pay.
Cause:
Paymate Software calculates the maximum amount of contributions based on the base amount of the calculation and not on the contribution amount itself.
For example the maximum for EI is $42,300.00 of taxable wages and the maximum deduction is $747.36
Therefore if you were to create a paycard for an employee with a gross earnings of $43,000.00 and this category was subject to EI the system would register the maximum of $42,300 and deduct $747.36.
Solution:
The problem is normally caused by a user over-riding the CPP or EI amount that was calculated by the software. This causes the gross amount the tax was calculated on to not align with the amount acctually being deducted. This error most commonly occurs when doing a payroll reversal. For example.
N.B: *NOT REAL NUMBERS
You pay John $1000 which you would deduct $7.51 in EI
You then realize you put the $1000 in Salary and it should have been asigned to bonus. having already posted the payroll you Reverse the record
You then create a new record for $1000 and put it to Bonus, you forgot to set Bonus to be subject to EI so you then proceed to manually enter the $7.51 into the EI field.
In the above example the $1000 will be missing from the annual maximum contribution base amount and the system will eventually overtax the employee by $1000 worth of payroll.
Resolution:
To Fix the problem go into you emloyees paycard History and add a record. Notice next to the EI and CPP fields there are base and taxable columns. Enter the amount of the missing funds ($42,300 - YTD base if the employees reached their maximum) into both of these fields. Save the paycard to a period in the past and in the Memo field make a note that you manually added this record (for auditing purposes)