How to self-pier audit CPP & EI

PIER stands for Pensionable and Insurable Earnings Review. A report issued by the CRA if they believe incorrect amounts of CPP or EI have been reported on T4 slips. If the employer is unable to explain the deficiencies the employer will need to remit both the employee and employer portion to CRA.

One of the best ways to avoid receiving a pier report from CRA is to ensure your data is correct.

T4 Pensionable Earnings – CPP Basic Annual Exemption x CPP Rate for Year = CPP Contributions

CPP Basic Annual Exemption for 2019 is 3500.00

CPP Rate for 2019 is 5.10

Maximum pensionable earnings for 2019 is 57,400.00

Maximum CPP contribution for 2019 is 2,748.90

Employer and Employee pay the same amount of CPP each year.

 

T4 Insurable Earnings x EI Premium Rate for Year = EI Premiums

EI rate for 2019 is 1.62

Maximum insurable earnings for 2019 is 53,100.00

Maximum employee premium for 2019 is 860.22

Employer pays 1.4 of the employees contributions.

 

if you do identify these deficiencies before the end of the year, you can usually correct the errors by deducting or paying back extra EI or CPP to your employees on the last pay cheque in December. .

CRA’s online guide to Pensionable and Insurable Earnings Review.