It is important that periodically, throughout the year you have been validating your payroll calculation results against your CRA remittances (where applicable), to ensure that they are accurate and any necessary adjustments to your remittances have been made on or before your last payroll of the year. Also, it is important to ensure that the “Taxable Amount” on the EI EE and CPP EE controls accurately reflect the Insurable and Pensionable earnings as they will of course also be displayed on the T4 regardless of whether or not the published maximums for the year have been attained.
The following PIER prevention reports require Jet Reports.
PIER Prevention Reports Features
The Pension and Insurable Earnings Report will be familiar to all payroll practitioners.
- The report is run by CRA on all year-end T4 submissions to identify inconsistencies and errors in the deduction and remittance of CPP and EI.
- Errors they find will result in either an inquiry or an audit.
- Sparkrock has prepared two reports, one for CPP and one for EI, which use the same methodology as the CRA does so you can identify your own errors and fix them before the final submission of the year.
- The reports are Excel-based and powered by Jet Professional.
- The reports can be run as often as required until the results are satisfactory.
PIER Prevention Reports
The following are the PIER Prevention reports available. Download the ones that apply to your organization.
Each of the reports requires the following from you before they can be run:
- Payroll Control Codes for CPP pensionable Earnings.
- Payroll Control Codes for each EI Insurable Earnings.
- Any Payroll Control Codes that are recorded as negative amounts.
Note: For example, Employer contributions to RRSP that match Employee RRSP deduction.
- Payroll Control Codes for CPP and EI deductions for both Employee and Employer amounts.
Note: Be sure to include codes such as CPP on bonuses etc.
- The number of pay periods in a year and the corresponding CPP exemption per pay.
- All of these amounts have to be put into named tables on the tab called Payroll Codes. The tables have to be expanded or contracted to fit your data. This is easy to do with the little handle at the bottom right of the table.
Running the Report
When running the report you will be presented with four options:
- What date range to run for.
- What employee range to run.
Note: The CPP report takes a long time to run and you may wish to do it in blocks. This option is also good to check if corrections you have made to the payroll have produced the desired results for affected employees. Do this by selecting only employees you want with the "pipe" in between. Access the "pipe" by pressing Shift and the key above the Enter key. (Eg. 1222|1455|1789 would report on 3 employees).
- A tolerance amount. You have the option of excluding amounts of $0.01 (or other selected amounts) since many payroll calculations can result in fractional pennies.
- Select to show details or not.
Note: It is best if you run the report with Hide details selected and then select to show details only for employees that have errors.