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February 21, 2020
Question

The Quickbooks payroll did not deduct CPP properly for one employee. Why?

  • February 21, 2020
  • 1 reply
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1 reply

AddieC
February 21, 2020

Hi there, 

 

I know how imperative it is to make sure all of your employees deductions are being recorded and calculated properly in QuickBooks Online. There are a few possibilities why Canadian Pension Plan (CPP) isn't calculating properly on your employee pay cheques. I'll explain why this may be happening. 

 

First, verify that the employees information has been entered correctly on their TD1 form. To do that, follow these steps: 

 

1. Click the Employees tab. 

2. Select the employee in question. 

3. Click the pencil icon next to Pay

4. Click the pencil icon next to their Federal and Provincial withholdings. 


This is where you can review the employees TD1. 

 

If everything looks correct, the next step is to determine whether an employee has reached their yearly CPP and EI contribution limits. Depending on the amount you're paying an employee, and what time of year it is, an employee may have reached the yearly limit for their CPP and EI contributions.

 

You'll have to cross-reference their total contribution amount with this article from the CRA: CPP contribution rates, maximums and exemptions.

 

If you're still not sure why your employees CPP isn't calculating correctly, please reach out to our tech support team

Cheers.