It is a problem with the calculations.  In the payroll module the CPP is calculated using the number of pay periods per year while the PEIR report calculates CPP on an annual basis.  So if your employees do not work for the total number of annual pay periods then the CPP exemption is a portion of the annual $3500 while the PEIR report uses the whole $3500 exemption regardless of the number of pay periods worked.  The regulation states that the calculation must be made this way and results usually in an overpayment of CPP and the employer portion is not refundable.  You will probably receive a PEIR Discrepancy report from CRA to complete because of this.  I hope this helps even though you asked awhile ago.

So, I have a new employee who just started in December.  The PIER says we've over-deducted CPP (because she has only had one pay).  Is this correct?  If she earns less than the annual maxiumum while working for us, am I not supposed to deduct CPP at all?  I am not as concerned for the employee because they will get it back, but if we do not get the employer portion back, I don't want to over-remit this.

For all employees, new or longer term, you must deduct CPP and EI by following the CRA rules as to eligibility until the maximum deductions have been met. I would never turn off a deduction just because... (they only started in December)...maybe there are other circumstances.

The PIER report is usually very reliable but clitches can occur because it is hard to anticipate every situation when programming. Over the years there has been many adjustments made to this report to try to remove the many concerns.

For all employees, new or longer term, you must deduct CPP and EI by following the CRA rules as to eligibility until the maximum deductions have been met. I would never turn off a deduction just because... (they only started in December)...maybe there are other circumstances.

The PIER report is usually very reliable but clitches can occur because it is hard to anticipate every situation when programming. Over the years there has been many adjustments made to this report to try to remove the many concerns.

My only comment on this is that the Sage Payroll System knows the dates of when the employees start and the last pay period ending dates.  In this day and age you would think that it could figure out the proper amount of CPP and EI on a portional payroll on the PIER report.  It would be a very nice "double check" feature for year end.  We do enough manual checking as it is.  It just would be nice to run this report and double check against the employee reports and then your done.