After you file your T4s, CRA runs its Pensionable and Insurable Earnings Review (PIER): it compares the CPP and EI you withheld from each employee with what their pensionable and insurable earnings required. If you withheld too little, CRA bills you for the shortfall, both the employee's share you failed to deduct and your own matching share, usually months later. The PIER Review screen runs the same check on your pay runs whenever you like, so you can find a shortfall in October, while there are still pay runs left to correct it in, rather than in a letter the following summer.
This screen is available in Canadian companies only.
Open it
- Employees ▸ PIER Review
The screen is titled PIER review, with the year as its subtitle. It opens on the current year. Use the year buttons at the top right, previous year, this year (highlighted) and next year, to review a different year.
What SeroBooks checks
For each employee paid in the year, SeroBooks prices the year against the rates in force on 31 December of that year, the tables CRA reviews against:
- CPP (or QPP for a Quebec employee): pensionable earnings, less the basic exemption the employee was entitled to, at the year's rate, up to the year's maximum, compared with what was deducted.
- EI: insurable earnings at the year's rate (the Quebec rate for a Quebec employee), up to the maximum, compared with what was deducted.
- The CPP exemption at 18 and 65: in the year somebody turns 18, or elects out of CPP at 65, the exemption is pro-rated by the months they were contributing. SeroBooks needs the employee's Date of birth to check this. Without it the employee is marked for review rather than balanced.
A shortfall is what CRA will bill. An over-deduction is shown too, but it is the employee's money and comes back to them when they file their return; CRA does not bill the employer for it. Over-deduction is common and usually not an error: the exemption is given a pay period at a time, so someone paid for only part of the year receives fewer slices of it than CRA credits them with.
The screen
When there is nothing for the year, the screen reads Nothing to reconcile for this year yet.
Tiles
| Tile | What it shows |
|---|---|
| Employees reviewed | How many employees had earnings in the year. |
| Total shortfall | The total CRA would bill. When it is more than zero the tile is highlighted and reads The employer owes this, both halves; otherwise Nothing outstanding. |
The table
| Column | What it shows |
|---|---|
| Employee | The employee's name. |
| CPP withheld | CPP (or QPP) actually deducted in the year. |
| CPP required | What the year's pensionable earnings required. |
| EI withheld | EI actually deducted. |
| EI required | What the year's insurable earnings required. |
| Shortfall | What was under-deducted. |
| Verdict | SeroBooks' verdict for the employee, in a red pill when there is a shortfall and a green one when there is none. |
The table has the usual search, sorting, filters, Columns, Email and Export controls.
Fixing what it finds
| Finding | What to do |
|---|---|
| An employee is marked for review because their date of birth is missing | Enter their Date of birth on their payroll setup and reopen this screen. See Add or edit an employee. |
| A CPP shortfall for someone who turned 18 or 65 in the year | Check their date of birth and their CPP exempt setting. |
| A CPP or EI shortfall on a benefit | Check the benefit's Pensionable (CPP) and Insurable (EI) flags. A benefit in kind is pensionable but not insurable; a cash allowance is both. See Payroll Items. |
| A shortfall found before year end | Correct the cause so the remaining pay runs deduct the right amount. Where a run was wrong, reverse it and re-issue it corrected. See Pay Employees. |
| A shortfall found after year end | Decide with your accountant whether to recover the employee's share and remit it before CRA assesses it. |
Common problems
- Everybody shows a small over-deduction. Usually the pro-rated exemption described above, for people who started or left part way through the year. It is not a problem for the employer.
- An employee is always marked for review. Their date of birth is missing.
- The totals differ from the T4 boxes. The review uses the same approved pay history as the slips. Check that every pay run for the year is approved.