CPP Overpayment

What happens when there is a CPP overpayment?  I know if not adjusted the employees will get their overpayment back on their tax return, but what about the employer's overpayment?  Does CRA credit the payroll account for this?

This feels like a stupid question! 

Parents
  • FormerMember
    FormerMember

     Hi there:  The Simply payroll program WILL NOT overdeduct CPP from employees.  The probability would be that there are some circumstances where the system underdeducts but NEVER overdeducts.   How did you do the calculations in Excel to figure out that there were overdeductions?   You cannot just take the gross earnings for every employee and subtract the $3,500.00 base amount and multiply by .0495.     If any employees did not work the full twelve months of the year, then you don't just deduct $3,500.00 from their gross.  You need to figure out each payday what the proportionate amount of the $3,500.00 applied to that pay period.     If you run the PIER report in Simply do you get the same overdeductions as you figured out in Excel?   The PIER report is incorrect if there are any employees who did not work the full year.   Rita Deering

     

Reply
  • FormerMember
    FormerMember

     Hi there:  The Simply payroll program WILL NOT overdeduct CPP from employees.  The probability would be that there are some circumstances where the system underdeducts but NEVER overdeducts.   How did you do the calculations in Excel to figure out that there were overdeductions?   You cannot just take the gross earnings for every employee and subtract the $3,500.00 base amount and multiply by .0495.     If any employees did not work the full twelve months of the year, then you don't just deduct $3,500.00 from their gross.  You need to figure out each payday what the proportionate amount of the $3,500.00 applied to that pay period.     If you run the PIER report in Simply do you get the same overdeductions as you figured out in Excel?   The PIER report is incorrect if there are any employees who did not work the full year.   Rita Deering

     

Children
No Data