Pensionable Insurable Earnings Review – PIER
Once your T-4's have been filed by the end of February, 2014, the Government will generate, if necessary, a report known as a PIER report, which indicates where they believe differences exist between what they think an employee/employer should have been assessed for Canada Pension Plan and/or Employment Insurance and what you have reported.
This will likely happen regardless of whether you do payroll in-house for Canadian Payrolls, or whether you use a service provider.
Most payroll systems with any level of sophistication will have a PIER reporting program built in and you should start using it now if you haven't already, to capture any discrepancies made on a year-to-date basis, and correct them before December 31, 2013. It is also a good idea to ask your service provider when using one to ask if they have done that and perhaps even provide you with proof that it has been done.
One area that often causes discrepancies is in the application of CPP/QPP exemption. Other areas that Canada Revenue Agency says cause problems is the incorrect recording of a birth date in the payroll system, incorrect values entered in Box 24 of the T-4 for EI Insurable earnings, incorrect amounts in Box 26 for CPP/QPP pensionable earnings, and Box 28 Exempt (CPP/QPP and or EI). In the event that a PIER identifies deficiencies that cannot be explained, the employer will be liable for both the employee and employer portion.
OnPayroll.ca performs regular PIERs throughout the year and guarantees accurate Year End processing. By monitoring this throughout the year, we capture any deficiencies while the employees are active within the company.
Natasha Smyth, B.SC.(Agr.), CPM
For more information contact Info@onpayroll.ca