Pensionable and insurable earnings review (PIER)

On this page

• What is a PIER
• How are the results provided
• What is the timeline for a PIER process
• What methods the CRA uses to send you the PIER notification
• How to respond to a PIER
• What are the payment methods
• What if adjustments are required on T4 slips
• What if you have multiple payroll accounts

What is a PIER

Every year, the Canada Revenue Agency (CRA) reviews the information on the T4 slips to ensure that the following amounts match:

• Required amounts of CPP and EI calculated from the employee's pensionable and insurable earnings
• Reported amounts of CPP and EI on the employee's T4 slips

Why the PIER is important

The CRA verifies the CPP and EI calculations so that your employee or their beneficiaries will receive the proper:

• CPP benefits if the employee retires, becomes disabled, or dies
• EI benefits if the employee:
  • becomes unemployed
  • takes maternity, parental, adoption, compassionate care leave or leave to provide care or support to a family member who is critically ill or injured
  • is injured, ill, or on leave without pay

How are the results provided

If there are discrepancies between the required and reported amounts, the results are printed on a PIER listing. If you report electronically and report an employee number on the T4 slip, you can view the employee number on the PIER listing.

The PIER report includes:

• A listing of the affected employees and the amounts used by the CRA in the calculations
• A PIER summary that shows any balance due
• A remittance voucher

• Examples of common errors

  • Box 28 (Exempt CPP/QPP, EI, or PPIP) of the T4 slip is not completed correctly
  • An employee’s change of age has resulted in a change in pensionable status (turned 18 or 70) without an adjustment to the deductions being taken
  • The social insurance number and/or name on the T4 was entered incorrectly
  • An extra payment was made over the course of the year and the CPP exemption for the pay period applied more than once

What is the timeline for a PIER process

Timeline	Steps in the PIER process
Day 1	Initial letter (PIER package) sent to you which requests a reply within 30 calendar days
Day 45	If you do not reply or make a payment in full, a notice of assessment is issued
Day 65	The CRA will issue amended T4s to you

What methods the CRA uses to send you the PIER notification

The PIER will be sent to you in one of the following methods:

• Electronically when you are registered for My Business Account (MyBA) or Represent a Client (RAC) using the online services at CRA sign-in services. In the PIER overview option:
  • PIER information will be available in MyBA and RAC for the last 5 years
  • You can view, download, and reply to the PIER letter in MyBA or RAC
• Mail if you are not registered for the electronic services

How to respond to a PIER

You are not required to respond to the PIER if you agree with the CRA's calculations and you will be remitting (paying) the exact amount shown on the PIER by the deadline.

You are required to respond to the PIER if you do not agree with the CRA's calculations. You must respond by returning the PIER with any corrected information and an explanation. The response can be sent using one of the following:

• My Business Account (MyBA) or Represent a Client (RAC) using the online services at CRA sign-in services under the “PIER Overview” option.
• By mail or by fax based on the information provided on the PIER.

What if you do not respond to the PIER

If you do not reply or make a payment in full by the reply date noted on the PIER, a notice of assessment will be issued to you. The notice of assessment will include applicable penalties or interest, or both.

In either situation, do not send amended T4 slips. The CRA will issue any amended slip to you.

Learn more on what happens if you remit (pay) late or you do not make a payment: When to remit (pay)

What are the payment methods

If you are using MyBA, you will have a Proceed to pay option in the PIER Overview section. This will allow you to do one of the following:

• Pay the PIER deficiencies in full without replying
• Pay any remaining deficiencies after you have provided a response to the PIER

This payment option is not available in RAC.

Learn more: How to remit (pay)

What if adjustments are required on T4 slips

If adjustments are required on T4 slips due to a PIER, the CRA will prepare 2 copies of the amended T4 slip and forward them to you. One copy is for your records and one copy is for you to give to your employee.

What if you have multiple payroll accounts

If you have multiple payroll program account extensions, the CRA will compare all T4 information returns for your business number to verify the PIER information and will contact you if there are CPP or EI deficiencies.

If the CRA does not find any deficiencies, you will not be contacted.

Contact the CRA

If you have any questions, contact the PIER unit at your National Verification and Collection Centres (NVCC) as follows:

• Newfoundland and Labrador NVCC

  Post Office Box 12071 Station A
  St John's NL A1B 3Z1

• Shawinigan NVCC

  4695 Shawinigan-Sud Boulevard
  Shawinigan-Sud QC G9P 5H9

• Surrey NVCC

  9755 King George Boulevard
  Surrey BC V3T 5E1

• Winnipeg NVCC

  66 Stapon Road
  Winnipeg MB R3C 3M2