EI Pensionable Earnings

Does anyone know why the EI Pensionable earnings that is printed on the T4's is not the same as the persons gross earnings?  Should they not be the same for the most part? What is it that affects this amount?

  •  yes - most of these people are under the maximum.  These employees just have straight salary income - no taxable benefits at all on any of them.  I can check the 65 age but there just seems to be a lot of people with a difference on the EI pensionable earnings - people who just have a salary income. 

  • FormerMember
    FormerMember

     Hi bigj67,

    Adjustments to paycheques made in Simply Accounting can also effect employee's taxable incomes.  However, if you have consulted with a Payroll Accountant and they've verified that the amounts are incorrect, you can go select an employee from the employee list and in the 'Employee Record' window, modify the Pensionable and/or the EI Ins. earnings amounts in the T4/RL1 reporting tab.  The T4 will pull the amounts for Pensionable Earnings and Insurable Earnings from the values in that tab.  Make sure you make a backup before editing any values.

    You can also audit the amount each paycheque recorded to EI Insurable and Pensionable earnings in the Employee Detail report.  You may need to add in the Insurable Earnings and Pensionable earnings columns to that report by clicking on Report Columns on the right hand side of the 'Report Options' window and selecting the 'Custom Report Column' setting. 

    Let me know if this helps!

     

  •  thank you Harry - I did know that adjustments to paycheques affected the taxable incomes and I looked for that on those that had differences.  However a lot of them don't have adjustments and we know that all earnings are EI applicable so again why the difference.  We have adjusted the figures for the T4/RL1 tab but I guess we are just wondering why do we have to do this.  What is driving the difference? 

    THanks for the tip to check the employee detail - I didn't realize you could add that column - I will do that and see if that helps to determine why there is a difference.  There must be something.

    thanks

  • FormerMember
    FormerMember

     Hi there:  I have found that for no explicable reason the system just puts a wrong EI Ins. Earnings amount in that column on the Employee Detail Report every now and then.  Ever since I discovered this several years ago I always check it and change it in the spot where you are able to do so.  I have never found a reason why the glitch in this regard.  It doesn't do it all that often, but it does do it.    Rita Deering

  •  Hi All, I looked at another one of my clients today.  I added the EI Insurable Earnings column on the employee report and noticed that the amount that is coming up does not include the vacation pay that is paid on each cheque.  So I went to settings and the "calculate EI" is checked off for vacation pay.  Seems strange to me - could this be a glitch?