Hi there,
I appreciate you reaching out to the Community. I'd be happy to show you how to calculate Canada pension plan and bonus pay in QBO.
Calculate CPP
With a few exceptions, all employees pay the Canada Pension Plan (CPP) at a rate of 5.10% (matched exactly by the employer) on wages earned between a minimum of $3,500 (called the basic exemption) and a maximum of $57,400 (called wage cap). Here's how to calculate the CPP:
- Determine the taxable gross pay (all pay types except reimbursement + Registered Retirement Savings Plan (RRSP) company contributions).
- Subtract the basic exemption for one period (depends on your pay schedule).
- Multiply by CPP rate: 0.051 (5.10%).
Is CPP not calculating correctly? Things to check:
- Is the employee paid (EE) marked exempt?
- Has the employee reached the annual maximum or wage cap?
- Is the employee too young or too old? (Under 18 or over 70)
Reference pages for CPP:
For more info, check out this helpful article: How to calculate Canada pension plan and employment insurance.
There's an article on our blog which shows you how to calculate Employee Taxes Using the Bonus Method. Check it out here. In case you have other questions, feel free to reach out to our support team using this link here.
