How do I set up payroll to calculate employers contribution for CPP & EI?

Hi there,

Congrats on your first post in the Community. I'll be happy to give you a hand with setting up your payroll and contributions in QBO. At this time, setting up employer-paid benefits depends on the contributions you choose. QuickBooks will automatically determine which contributions will be subject to CPP or EI. Let me guide on you to set up contributions.

1.     Click the Gear icon, then select Payroll Settings.
2.     Choose Pay Schedules.
3.     Select Deductions/Contributions.
4.     Click Add a New Deduction/Contribution.
5.     Select either Health Insurance or Retirement Plans from the Category drop-down.
6.     Choose the type of contributions.
7.     Click OK once everything is filled out correctly.

After you've followed the steps above, you'll notice boxes below which show deduction tax and contribution tax settings. If you see a green dot on the Pensionable and Insurable sections, it means that the contribution is subject to CPP. It also determines which box it'll appear on the T4 slip. Please see screenshot below for your visual reference.

Here's a helpful article you can read on for more details: How to Turn on and Set up Payroll.

You might also want to check out this article to know how to calculate the Canada pension plan.

Please feel free to post any other questions you have below. I'll be happy to assist! :)