What this does
The Pensionable and Insurable Earnings Review (PIER) is CRA's check of CPP and EI against the T4s. If you under-withheld, CRA bills the employer for both shares. The earnings review in SeroPayroll runs the same check before you file.
Steps
- Go to Year-End. In the checklist, find "The earnings review (PIER) …" and choose Review. The page is Earnings review {year}.
- For each employee, read Expected, Withheld and Short. A line says Balanced, or "Short {amount}".
- For an employee who is short, choose Fix with a correction.
- Approve the correction run that is created.
- Come back to the review to check it balances.
What the findings can say
- More basic exemption was granted than the employee was entitled to.
- CPP or QPP withheld is short. The same for CPP2/QPP2 and EI.
- Over-withheld. This is the employee's money, refunded on assessment. No action is needed.
- No date of birth is on file, so the months pensionable are unknown.
What the fix does
The fix is a correction of the employee's last posted pay of the year, carrying the CPP, QPP or EI shortfall with the employer's share. Net pay in that correction goes negative by the catch-up. No payment is made. How to recover the catch-up from the employee is the employer's decision.
Good to know
- A shortfall also shows as a warning on the review step of a pay run.
- Exemptions you set on the Tax tab show on the review with their reason.
- The review needs the tax tables. If they could not load, it says it could not run.
- Fix shortfalls before you file the T4.