Deduct additional CPP and EI (Deficiency deductions)

If an employee is deficient in CPP/QPP or EI payments for the year; you receive a Deficiency Report with your year-end package from Dayforce outlining the shortfall.

A CPP/QPP deficiency can occur when, for example, the CPP/QPP exemption (Applicable Period of Time) is applied incorrectly on an extra payroll run.

An EI deficiency can occur when, for example, a manual cheque is issued and the incorrect premiums have been deducted.

These payment deficiencies must be reviewed and collected before final payroll of the year is processed. Otherwise, you as the employer, are liable for both the employee and employer amounts.

If you determine that the deficiency reported is not valid, record your findings. You will need this explanation when a deficiency report is issued by the government.

Tasks

To deduct additional CPP and EI amounts reported on a deficiency report:

  1. Click the Pay Period menu and click the Enter button for the pay period you want to work with.

  2. Open the Statutory Deductions page.Closed From the Payroll menu, select Regular Payment > Statutory Deductions.
  3. Select the employee from the Employee List.
  4. In the CPP/QPP Deduction section, enter the dollar in the Specific dollar amount to be added to system-calculated amount box.

  5. In the EI Deduction section, enter the dollar value in the Specific dollar amount to be added to system-calculated amount box.

    These fields allow the amount to be taken over-and-above the amount that must be calculated on the current pay.

    These values are used only for the current pay period and are cleared after the payroll is processed.

  6. Click Save.

  1. Open a Year-end run.

    Only one year-end run may be open at one time. If a year-end run is already open, Powerpay displays the message Year-End Run - Open - 'Create New Run' Links not available and the Create New Regular Run, Create New Extra Run, and Create New ROE Run links do not display.

    The Create New Year-End Run link is ONLY available:

    • after the first regular run or extra run of the current year is processed, and
    • up to and including the last business day of March

      If you require a Year-End Adjustment run after this date, contact your Customer Support Team.

    1. Go to the Select Pay page.Closed Select the Pay Period menu button.
    2. Click the Create New Run button.

    3. Select Create New Year-End Run.

      If no regular or extra runs are open, Powerpay displays a message reminding you that all entries on the year-end run must be submitted before you can open a regular or extra run.

      If any regular or extra runs are open, Powerpay displays a message reminding you that the year-end run must be submitted before you can return to the regular or extra run, and that any permanent changes entered on the regular or extra run do not apply to the year-end run.

    4. Select Yes to confirm that you want to create a year-end run.

    5. Click Save.

      The Pay Period Number, Payment Date and Pay Period Ending Dates are view-only fields and the values displayed are based on your last payroll run in the previous year.

    6. Proceed to enter any year-end adjustments.

  2. Go to the Year-End Adjustments page.Closed From the Payroll menu, select Year-End Adjustments.

  3. Enter the appropriate employee CPP/QPP or EI amount in the Government Deductions section.

  4. Submit the Year-end run for processing.

  5. Validate the output from the Year-end run.

  6. Rerun tax forms, if required.

Note: You are responsible for remitting any statutory deductions created by the adjustments to the appropriate agencies by the specified deadline imposed by those agencies. This includes employee and employer portions.

See also