Hello @Rebecca R ,
The problem happens when you try to run any extra paycheque, i.e. an unscheduled payroll. As soon as you make more pay cheques for the same person that the system thinks they should get, i.e. 12 monthly, 26 bi-weekly, 24 semi-monthly, etc. it applies the exemption the same on the extra pay cheque as it does for the regular pay cheques. This results in an underfunding of CPP because the exemption for that person for the year now exceeds the $3,500 exemption, meaning that it calculates a lower amount of CPP than it should. I think it might be clearer if you read my post above, where I give better examples.
In a nutshell, what we're saying is that if someone runs an "unscheduled" payroll, it means it is a payment over and above the regular period payroll, so no exemption should be calculated whatsoever on the unscheduled payroll. A CPP calculation of a straight 5.45% on CPP insurable earnings should be calculated, period. No exemption. Because QB does not have this functionality built-in, it forces us to do the calculation manually and override the CPP calculation on the unscheduled payroll cheque.
