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! 

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  • FormerMember
    FormerMember

     Hi again:  You did not say how you checked the CPP deductions in Excel.  If you did just deduct $3,500.00 off the gross for each employee and then multiply to get the CPP amount, then your calculations would definitely not be correct, particularly if there were employees not employed for the full year.

    You say you were working from the client's backup.  If you open Simply, go up to Reports, Payroll, Employee, Detail, choose Jan. 1, 2009 to Dec. 31, 2009 for your date range and bring up that report and print it, you will be able to see from that report if each pay period was correctly deducted based on the number of pay periods selected, etc.  If you do not want to spend the time for this, you can pretty safely assume that the Simply deductions are correct as long as the client was using the current deduction tables throughout the year as Dave mentioned previously. 

    The circumstances where the program may actually underdeduct are few, so unless you know the circumstances of every paycheque issued you would not be able to determine that.   I would trust Simply and if there turns out to be any under deducted employees, that will have to be dealt with later.   Rita Deering

     

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  • FormerMember
    FormerMember

     Hi again:  You did not say how you checked the CPP deductions in Excel.  If you did just deduct $3,500.00 off the gross for each employee and then multiply to get the CPP amount, then your calculations would definitely not be correct, particularly if there were employees not employed for the full year.

    You say you were working from the client's backup.  If you open Simply, go up to Reports, Payroll, Employee, Detail, choose Jan. 1, 2009 to Dec. 31, 2009 for your date range and bring up that report and print it, you will be able to see from that report if each pay period was correctly deducted based on the number of pay periods selected, etc.  If you do not want to spend the time for this, you can pretty safely assume that the Simply deductions are correct as long as the client was using the current deduction tables throughout the year as Dave mentioned previously. 

    The circumstances where the program may actually underdeduct are few, so unless you know the circumstances of every paycheque issued you would not be able to determine that.   I would trust Simply and if there turns out to be any under deducted employees, that will have to be dealt with later.   Rita Deering

     

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