This report supplies a cross payroll report with a verification and recalculation of the EI and/or CPP deductions. The report produces a detail line per EI/CPP deduction, per payroll for an employee with a recalculation reflecting individual entries as well as combined entries. This report recognizes all EI and CPP deductions based on the deduction Group (Group 6, 7 or 8) and Type codes (Type 0 or EI and Type 1 for CPP) taken from the database per payroll.
NOTE that this Pier Report is a GUIDELINE ONLY. Discrepancies should be reviewed to determine why an outage has occurred before any action is taken.
The recalculation of the CPP deduction requires the system to determine the amount of CPP exemption that should be used. For each individual payroll entry, the system counts the number of unique pay periods the employee was paid under. The annual exemption amount is divided by the total number of times an employee is paid in a year to get an exemption per pay period amount. The exemption amount used is then calculated by multiplying the number of times the employee was paid by the pay period exemption amount. The total number of times an employee is paid in a year is taken from the pay cycle code database for the pay cycle from the employee's master function line. When an employee’s CPP Exemption field is disabled (set to N) then the CPP exemption amount will be zero for that specific payroll calculation.
When an employee is paid on multiple payrolls the CPP exemption is handle based on the months the employee worked. The CPP exemption per pay period is recorded against the month from the date on the history record. All payroll exemptions are accumulated together based on the months. Each month's total exemption amount is limited based on the annual CPP exemption divided by 12. The total of the monthly exemptions defines the employee's cross payroll CPP exemption to be used. This value is displayed on the CPP Recalculation line.
This process also includes an option to calculate all employees CPP deductions using the full annual CPP exemption amount for all entries. This option when used in conjunction with the 'Omit Reporting Balanced (zero) Entries' feature, will highlight those employees that will be easily flagged by the calculation done by Canada Revenue Agency.
Default Prompt Storage and Retrieval
This process includes the option to maintain multiple sets of stored prompts.
Name the prompt sets by defining a title up to 10 characters, with a 30-character description.
On the first prompt click the Report Defaults icon to select an existing set of prompt values. You can delete prompt sets or change the description from the Report Default icon.
Report Current, Selective or All Payrolls
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Enter 'C' to report on employees from the current payroll only.
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Enter 'S' to select specific payrolls to be reported.
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Enter 'A' to report on all like payrolls defined in the payroll location profile.
When you are currently running from a live payroll then only live payrolls will be included in the report.
When 'S'elective payrolls was entered, the follow prompt appears:
Enter Payroll Location ID
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Enter the payroll ID codes (one at a time) for payrolls to be reported. Up to 10 payrolls may be selected. Use look-up for a list of valid payroll ID codes.
Report on CPP, EI or Both
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Enter 'B' to report on both CPP and EI
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Enter 'C' or report on CPP only
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Enter 'E' to report on EI only
Process Verification For Year
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Enter the year to process the CPP and/or EI verification for. All pay periods for the year will apply.
When verification on EI was selected, the follow prompts appears:
Enter EI Rate for Processing [e.g. .0225]
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Enter the correct EI rate for the year selected. By default, the EI rate from the current database is displayed.
Enter EI Insurable Limit [#####.##]
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Enter the correct EI insurable limit for the year selected. By default, the EI limit from the current database is displayed.
When verification on CPP was selected, the following prompt will display:
Enter CPP Rate for Processing [e.g. .043]
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Enter the correct CPP rate for the year selected. By default, the CPP rate from the current database is displayed.
Enter CPP Yearly Limit [#####.##]
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Enter the correct CPP limit for the year selected. By default, the CPP limit from the current database is displayed.
Enter CPP Yearly Exemption [#####.##]
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Enter the correct CPP yearly exemption for the year selected. By default, the CPP yearly exemption from the current database is displayed.
Process CPP with Full Exemption Override
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Enter 'N' to process the CPP recalculation using the calculated CPP exemption based on the employees pay history.
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Enter 'Y' to apply the full CPP yearly exemption amount to all employees. When this option is selected all calculations for an employee as well as any combined CPP calculations will be done using the full yearly CPP exemption to highlight those employees that will be easily flagged by the calculation done by Canada Revenue Agency. Along with this prompt you would select to OMIT REPORTING BALANCED ENTRIES, which in conjunction with this prompt will only report those employees that have under-contributed.
Omit Reporting Taxable Benefits Only Entries
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Enter 'N' to include all entries.
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Enter 'Y' to omit payroll entries where the employee has no earnings and the CPP eligible is purely taxable benefits.
Omit Reporting Balanced (zero) Entries
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Enter 'Y' to omit reporting those employees with correct or balances EI and/or CPP calculations. When PROCESS CPP WITH FULL EXEMPTION was selected this prompt will omit all employees that have not under-contributed.
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Enter 'N' to report all employees EI and/or CPP calculations.
Enter a Forgiveness Factor [####.##]
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Enter a forgiveness factor. Calculations off by the amount of the forgiveness factor, will be omitted from the report. The forgiveness factor covers both positive and negative values. For example, a forgiveness factor of 1.00 will omit entries that are from –1.00 through to 1.00.
When more than one payroll was selected, the follow prompt appears:
Report Only Employees with Multiple Payrolls
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Enter 'N' to include employees with only one payroll entry.
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Enter 'Y' to only include those employees with multiple payrolls.
Sort Employees by Employee Number or Name
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Enter 'E' to generate the report in employee number sequence.
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Enter 'N' to generate the report in employee name sequence.
The EI detail lists the following:
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The employee number, name and status
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The payroll ID code
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The deduction code and description
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Non-eligible earnings (excluded earnings)
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Eligible earnings, based on the include/exclude list of the deduction
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Taxable benefits, based on the include/exclude list of the deduction
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Accumulated Share taken
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Accumulated Eligible Earnings taken
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Accumulated employee deduction amount taken
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Recalculated employee deduction amount
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Difference between actual taken and recalculated amount, a positive indicates an under-contribution while a negative difference indicates an overage in contributions.
Combined EI Recalculation lists the following:
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Re totaled EI insurable earnings
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Accumulated employee deduction amount taken
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Combined recalculated employee deduction amount
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Difference between actual taken and combined recalculated amount, a positive indicates an under-contribution while a negative difference indicates a overage in contributions.
** Indicates a combined calculation where the re totaled insurable earnings do not match the accumulated YTD earnings.
The CPP detail lists the following:
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The employee number, name and status
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The payroll ID code
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The deduction code and description
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Non-eligible earnings (excluded earnings)
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Eligible earnings, based on the include/exclude list of the deduction
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Taxable benefits
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Periods paid out of total periods per year
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Exemption amount used (yearly exemption divided by periods in year multiplied by periods paid so far)
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Accumulated Share taken
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Accumulated Eligible Earnings taken
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Accumulated employee deduction amount taken
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Recalculated employee deduction amount
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Difference between actual taken and recalculated amount, a positive indicates an under contribution while a negative difference indicates an overage in contributions.
Combined CPP Recalculation lists the following:
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Number of months of exemption
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Actual CPP eligible earnings and calculated CPP exemption
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Eligible earnings reduced by CPP exemption amount
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Accumulated employee deduction amount taken
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Combined recalculated employee deduction amount
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Difference between actual taken and combined recalculated amount, a positive indicates an under-contribution while a negative difference indicates a overage in contributions.
** Indicates a combined calculation where the re totaled insurable earnings do not match the accumulated YTD earnings.