What is the PIER process?
The Pensionable and Insurable Earnings Review (PIER) process exists to verify that the CPP/QPP and EI deductions withheld line up correctly with the Pensionable and Insurable Earnings reported on the T4.
Using the Adjustments Feature in Sage Payroll, you can correct these discrepancies prior to issuing pay statements for the final payroll of the year.
How to correct CPP/QPP and EI deficiencies in Sage Payroll
To complete this process, follow the steps below:
Complete the final Pay Run for the year
NOTE: DO NOT SEND THE PAY STATEMENTS TO EMPLOYEES OR ISSUE PAYMENT AT THIS POINT
Generate the T4s to view the Pensionable Earnings, CPP/QPP Contributions withheld, Insurable Earnings, and EI Premiums withheld for each employee
NOTE: These specific T4 slips are ONLY being used to provide the Pensionable and Insurable Earnings. These are not the forms that you will file. We recommend going to Submissions > Federal tax forms > New T4 Form > Print T4 slips only > Next > Select the employees > Next > Generate to generate the T4 slips you can use in your calculations.
If you find significant CPP or EI deficiencies of more than $1.00, revert the final Pay Run and reprocess.
On the second step of the Pay Run, click on any employee with a CPP/QPP or EI deficiency.
At the top of the window, check the box that says Edit taxes and other expenses amounts. Adjust the CPP (employee contribution) and/or EI (employee premium) pay components to account for the deficiency. Save. Repeat this process for each employee with a CPP/QPP and/or EI deficiency.
Finalize the Pay Run.
Verify that the CPP/QPP and EI year-to-date figures for each employee match the correct CPP/QPP and EI calculations determined in step 3.
You are now ready to issue your pay statements to your employees for the final Pay Run of the year. You can also generate your T4s with corrected figures and file with the CRA.