If CPP is no longer getting in your Sage 50 and you check the employee record only to find that they are all coded in the same manner as the other employees. The other employees have the right deductions being made while for a few the CPP is not taken off.
In other instances, the CPP is not calculated for everyone. In case the employees have reached the maximum CPP & EI deductions for the year then it may prompt an error showing that the CPP has reached to its maximum.
Table of Contents
Description And Related CPP Errors:
- Payroll taxes not calculating at all
- Payroll taxes not calculating correctly
- Payroll taxes amount is different from the online tax calculator
- Payroll taxes are not calculating automatically despite no changes being made since the last payroll processing
- Income taxes not calculating for certain employees on their paychecks
- Salary not displayed in the current period.
- Improper / lesser / hither tax deduction being made
Top Reasons For CPP Amount Not Calculating:
1) Check if the employee under 18 ( check if the birthday is correct in the Employee – Personal tab)
2) Have they already reached their maximum deductions
3) Check if deduct CPP checkbox turned on in Employee Ledger > Taxes tab
Steps To Troubleshoot The CPP Amount Not Calculating Error:
Note: Compare the tax deductions on the Payroll Deduction Online Calculator that calculates Federal and Provencal taxes.
Step 1: Exit the history mode
Sometimes the system doesn’t proceed to calculations if you are in the history mode
Go to Help > History > Calculate taxes automatically > Close History
Step 2: Install the Latest Sage Update
- Go to Help > About > Check for the latest releases > follow the prompts to complete the process
- OR manually go to Help > About > Program Details > Check the version number > if a higher version is present then install and update from the Sage website
Step 3: Activate the Payroll ID
First, check if the payroll ID is active by going to Help > About Sage 50 > Support info > Payroll ID – confirm whether Active box checked or not
To activate Payroll ID:
- Go to Help > Update Service Plan OR Select Help > Unlock Payroll
- Click on the Enter Payroll ID button > Enter Payroll ID > Click OK
Step 4: Update basic tax exemptions for all employees
Go to Maintenance > Update Employee Claims > Choose Federal or Provincial > Select all employees > if they have basic claims pending then > Select Update Basic Personal Amount
Also, set up the income properly
- Go to Setup > Settings > Payroll > Income
- Verify if the Calc. Tax box is checked.
- Check in the Employee Record > Income tab > check if the Amount per Unit & Hours per Period are correct
Step 5: Set taxes to calculate automatically
- Open Paycheck journal > Create a paycheck normally
- Enter the earning amounts > Click the Taxes tab
- Check if the EI and CPP boxes are grey to enable automatic calculations
- To change to automatic calculation select – Calculate taxes automatically
- In case the manual button is unable to choose automatic or recalculate buttons then run SA_ Sage_dbutil.exe to rectify the missing paychecks payment journal and sales tax codes
Calculations done on employee’s incomes and deductions calculated in the right manner are important for the paycheck window to print cheques correctly. However, incorrect tax calculation, over or under deductions, salary not getting displayed for the current period are major concerns for the payroll. These error needs to be sorted at the earliest.
Why Contact AccountingHub
If you are facing issues related to payroll tax calculations, you need professional help. It needs comprehensive troubleshooting before the process can be fixed to function right. You can call AccountingHub for fixing the Payroll tax not calculating correctly.
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