Sage Payroll can automatically recalculate and adjust tax deductions to resolve differences between required and reported amounts for the following:
· Canada Pension Plan (CPP)
· Quebec Pension Plan (QPP)
· Employment Insurance premiums (EI)
· Federal, Provincial, and Quebec income taxes
Resolving these differences can prevent you from receiving a Pensionable and Insurance Earnings Review (PIER) report from the Canada Revenue Agency (CRA).
Note: Tax year-end recalculations work best when run on the final pay run of an employee, or at Year-End. Recalculations don’t account for manual adjustments made during the year, or years where the employee turned 18 or 70.
To run the tax year-end recalculations.
Select Pay runs and click Process pay run.
Select an employee to Process final pay run.
On the Pay run values tab, check the box next to Recalculate and adjust year to date taxes.
To instead adjust taxes manually, clear the check box next to Recalculate and adjust year to date taxes
Click Save, then click Confirm.