How are CPP exemptions handled in off-cycle payrolls?

When you run an off-cycle payroll, CPP exemptions are automatically applied or skipped based on whether the employee has already been paid in the linked pay period. This helps ensure CPP is withheld correctly, even across multiple pay runs.

How does the exemption logic work?

When processing an off-cycle payroll:

• ✅ If the employee was not paid in the linked pay period, the CPP exemption will apply

• 🚫 If the employee was already paid in the linked pay period, the CPP exemption will not apply again

This ensures CPP exemptions are only applied once per pay period, even when off-cycle corrections or top-ups are processed.

What about final pay or missed payrolls?

In cases where you're running an off-cycle for missed pay or an employee’s final payout:

• Run the regular payroll first, if possible

Why this matters

This automatic behaviour:

• Helps prevent under-remitting CPP contributions

• Ensures the exemption is applied accurately without manual tracking

• Supports compliant payroll handling when processing corrections or special payouts