The 3500 is annual and is dividable by the nbr of payperiod in one year which is then taken off eanings prior to tax calculations. So there are CPP taken off as required. You do not know if they have worked for other companies previous to your employment so it is not up to you to determine whether any CPP should not have been deducted. Sage has calculated it correctly and you can verify that by taking the 3500.00, divide by total nbr of payperiod in a year (no matter now payperiods the employees actually used). Then taking that amount and multiply by the nbr of payperiod the employee actually worked. Now take that sum and subtract it from the total earnings and multiply that by the CPP rate. That answer should be very close to the CPP total that Sage calculated.