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February 10, 2024
Question

CPP basic $3,500 exemption is prorated per pay periods worked if not the full year. QBO is on "continuous periods " rather than exact number of pay periods with earnings?

  • February 10, 2024
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1 reply

February 12, 2024

Hi helen-egan, 

 

Welcome to the Community. Thank you for reaching out, I'd be happy to provide more information on how CPP is calculated in QuickBooks Online in order to get you back to doing what you love.

 

To answer your question, QuickBooks Online operates on a continuous periods basis rather than an exact number of pay periods with earnings. This approach ensures that the CPP contributions are adjusted based on the actual periods worked, rather than assuming a full year of employment. 

 

Feel free to use this article for better understanding: How to calculate Canada Pension Plan in QuickBooks Online Payroll.

 

If you have any other questions, don't hesitate to reach out. I'm here to help.