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BK-PaulDavis
February 19, 2021
Question

CPP Exemptions for Status Natives

  • February 19, 2021
  • 1 reply
  • 0 views

We have a couple of employees that are Status Natives and therefore when we do work on a Native Reserve (which we occasionally do), those employees do not have to pay CPP on their earnings for those jobs. It is also reported on Box 71 of the T4. I am having trouble with setting up these pay types in quickbooks online. I am just wondering if you know some way to set up these payroll items that they will appear in the correct T4 box and not deduct CPP from certain hours.

It is only the jobs where they are working on a reserve not all of the hours each pay for the employees.

1 reply

Rebecca R
Rebecca R
February 19, 2021

Hello there BK-PaulDavis,

 

I know how important it is to be able to accurately track your employees' source deductions. In special cases like these, it's essential that you're recording things correctly so that your employees' T4 slips are correct. Let me give you a hand with this.

 

Since you've mentioned that these employees have CPP deducted generally, but it isn't deducted on certain jobs. In that case, you'll want to make manual adjustments while you're running payroll for those jobs. After you've selected the employees for the pay run, hit Preview payroll. In that window, choose the Edit pencil within the Net Pay column to make changes. Scroll to the Employee taxes section and click it to open it up. You'll notice that the fields for Income Tax, EI, and CPP are now editable. Make the necessary adjustments to the CPP amount as per the recommendations by the CRA. Hit OK once you've finished to save the changes and finish running payroll. You'll have to make these adjustments each time based on the amount of hours that your employee worked at a specific job site.

 

If you need an extra hand with this, your accountant will be of assistance to you. You can invite them to work within QuickBooks with you by navigating to the My Accountant tab. You'll also find the Find a pro to help button there, so you can reach out to one of our QuickBooks-certified ProAdvisors if you're interested. 

 

Let me know if there's more I can do to help. Have a fantastic weekend!

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