I printed off a summary of the Deductions and Expenses detail for all employees and have a question about the EI portion of the summary.

I understand that the amount shown here is the sum of the EI from the employee and employer's share (based on the Ontario tax table, the EI rate is 1.4). However, this amount is coming up as greater than what I would calculate manually.

Example:
EI paid by employee = $19.97
Total Amount as given in summary = $59.51

Shouldn't this amount actually be $47.93 (Employee share = $19.97 + Employer share = ($19.97x1.4))?

I don't understand why the amount is significantly more than my calculations. On the other hand, the CPP and Tax deductions reported in the summary are correct, it's just the EI that's off.

Any suggestions?

Your calculations appear to be correct so I would suggest checking to be sure every employee account is set to 1.4 for the EI rate.

Clyde

All of the employees have the "Calculate EI automatically" box ticked off and the rates are all at 1.4. Could something else be causing the problem, like maybe something in the settings or setup?

Hi there:  Have you set any of the employees as "inactive"?  If you have ticked the inactive box for any employee their amounts would not show up on your report even though they had EI deducted.  The G/L accounts would be correct but doing the figuring from the numbers on the Report would not be right.   Just a thought.  Maybe that isn't even the way that it is incorrect.  I had this kind of problem myself and now I NEVER set any of the employees to inactive even if they are.  I had set an employee to inactive who hadn't worked for us since early in the year one year and when I went to produce the T4's his didn't get included.  Couldn't figure out for ages what I had done wrong.  And I didn't notice the prompt that says "include inactive employees".  I just didn't think that setting an employee to inactive would exclude their numbers from any of the payroll reports and the T4's.  So now I don't do it so I won't forget.        Rita Deering

Hi again:  There is one other thing to check that I thought of as well.  The report will default to the last one that you did.  Be sure to uncheck the "Select All" choice and the re-check it.   If you have added an employee since you last did a Report it will the previous Select All will not include the new employee and that new employee's payroll information will not get included in your report.  That could also be a reason why the G/L amount and the Report amounts differ.    Rita Deering

Thanks for all of your suggestions. I've checked out each one of them and I still can't find a solution. I'm still unsure of why the summary is calculating the employer's share of EI to be greater than the rate of 1.4 when all of the employees have their rates set to 1.4...

Have you taken a look at the detailed report to see if you can tell which empolyee(s) is causing the error?

Yes I have, it is all of them!

Do you do books for another company, and if so, do you have the same problems with it?  I'm thinking that if there's nothing wrong with you setups, and its affecting all of your employees, maybe you've picked up a glitch in your software/payroll update and if uninstalling and reinstalling SA would help

For some reason everything seems to be fine now - it seems to be that after upgrading the program, only the first payroll was affected by the miscalculations of the employer's EI contributions. However, I noticed that the payrolls produced after that (up to current) have perfect calculations.

I'm not sure what I did in between the first and second payrolls, but I seem to have changed some settings in which SA is now making the correct calculations.

Thanks for all of the suggestions!