It’s October, which means sexy (and disturbing) Halloween costumes are hitting the shelves, Christmas sales are already starting and you should be reviewing your employee’s CPP and EI contributions to ensure you don’t receive a PIER (Pensionable and Insurable Earnings Review) report – and the bill that goes with it – from the CRA next year.
Luckily, for any Canadian companies using Microsoft Dynamics GP HR & Payroll Module, Prophet Business Group has prepared a report that reviews your payroll's insurable and pensionable earnings vs. employee contributions for the year, giving you a chance to proactively ensure you don’t get a PIER report.
If you’re not familiar, the PIER report recalculates EI and CPP contributions based on the insurable earnings and pensionable earnings then compares it to the actual EI and CPP deducted. The CRA checks the T4 slips you file to ensure the CPP/QPP and EI amounts you reported are correct. Employee CPP/QPP and EI amounts are recalculated based on the pensionable and insurable earnings you reported. Any discrepancies between reported and calculated amounts for an employee are noted on a PIER listing.
Identifying discrepancies before the end of the year is especially important, since employers are responsible for the employee and employer share of any underpayment of CPP and EI contributions. This is rarely an issue for full-time salaried employees, but for employees with variable compensation (salespeople, for example) or bonus compensation (car allowances, etc.) it can be easy to miss deductions.
Whether you’ve had PIER reports in the past or simply want to ensure you never need to deal with one, our report will give you plenty of time to deal with issues and peace of mind. If you’re interested, get in touch with us!