Sage is Not Calculating the Income Tax Deduction

✅ Click on Setup > Settings and then select Payroll > Incomes
✅ Insert check mark in the Calc QPP /CPP for Income

✅ Go to Help and open to About Sage 50.
✅ Click on Support Info.
✅ Next, verify the Payroll ID is set Active.

✅ Open the employee records for the particular employee 
✅ Click on Personal
✅ Verify if the Birth Date is correct.

The following exemptions need to be followed, based on the actual employee age:

✅ A minor does not pay CPP till the month after his18th birthday
✅ Once an employee turns 70, the CPP will not calculate a paycheck dated in the following month and thereafter
✅ In Quebec, the QPP will continue to calculate, even after an employee turns 70,
✅ Click on the Employees icon
✅ Double-click on the name of an Employee to view his record.
✅ Click on Personal
✅ Check whether the Birth Date for this employee is correct.

✅ Go to the Income section
✅ Click on the relevant employee record
✅ Check if the number for Periods Per Year is correct
✅ Please note that CPP will only calculate when the total amount of ‘This Period’ is more than a ‘specific amount’

For example, the ‘specific amount’ for 2016 will be calculated as 3500 ÷ the number of pay periods. If there are 26 pay periods, the specific amount is = 3500 ÷ 26 pay periods = $134.62. Hence, the gross pay amount must be more than $134.62 to calculate CPP. Else, no CPP will be calculated..

✅ Create a newer Pay-cheque, and make sure the Calculate Taxes Automatically tab on the Pay-cheque window is enabled.
✅ Verify the CPP is now being calculated correctly.

Note: You will be unable to enable this preference if:

✅ Your company file is in history mode.
✅ You have not subscribed to the Sage Business Care Gold service.
✅ If you have set your session date onto the next calendar year.
✅ The CPP has reached its maximum.
✅ If there are changes made on the Setup and Settings. There is a possibility the check mark on Calc CPP/QPP has been removed. If this is the case, you need to replace this check mark in the column for every income used.