Question

I am the only employee in my company. since the 2nd payroll of July the CPP deduction/contribution on my paycheck suddenly increased drastically from $200 to $1600. Why?

Forum|Forum|11 months ago
August 8, 2025
1 reply
3 views

Is it because I am self-employed and exempted from EI?

QuickBooks Online

Level 9

There could be several reasons for a drastic increase in your CPP (Canada Pension Plan) deduction, hello244. Let's figure this out together.

A significant increase in your salary or wages can lead to higher CPP contributions.
If you received bonuses or other forms of income, this could affect your CPP deductions.
An error may have occurred during payroll processing, resulting in incorrect deductions.
Ensure that your contributions are within the annual limits set by the government.

Check out this article to learn how to calculate CPP deductions and spot errors: How to calculate Canada Pension Plan in QuickBooks Online Payroll.

Please comment below if you have further queries, and we're here to help.

H

hello244Author

I have not changed my payroll amount since April, and it's processed automatically each period.

The CPP deduction each period used to be $190, then it suddenly became $1,600ish, plus additional CPP deduction. It doesn't make sense at all.

I had to manually change it this last two times.

K

Kurt_M

QuickBooks Team

We can point you in the right direction to help you resolve the sudden increase in your CPP deduction/contribution on your paycheck in QuickBooks Online (QBO).

You'll want to connect with the Canada Revenue Agency (CRA) to have your records reviewed and determine the root cause of the problem. Please know that QuickBooks Online calculations will depend on the data you've entered or provided in your company file. It's crucial to remember that QBO adjusts based on your gross income within a year and your pay schedule.

Checking your current setup would also help in addressing the discrepancies and correcting them as soon as possible. Please see this page for further guidelines: Set up and add deductions and contributions to an employee's payroll in QuickBooks Online Payroll.

We encourage you to revisit this thread if you require further assistance managing employees' deductions and contributions in QuickBooks. Rest assured, we're always ready to extend a helping hand.

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