You did everything right to avoid a Pensionable and Insurable Earnings Review (PIER) report for your clients. You tightened processes. You reconciled year-end totals. You triple-checked T4 slips.
And the report arrives anyway.
Welcome to PIER season.
Canada Revenue Agency (CRA) reviews are never fun, but managing a PIER is about more than fixing payroll math. It’s about showing up for your clients when the pressure is on. When handled well, a PIER can strengthen relationships, reinforce your advisory value, and position you as a steady hand they can rely on.
Here’s what to do after a PIER has been issued, and how to turn it into a win.
Reset the narrative.
When a client receives a PIER, their first reaction is usually panic.
“Did we do something wrong?”
“Is this going to cost us money?”
“Are we in trouble?”
Before you can respond, they’re imagining worst-case scenarios.
This is where you step in.
Reassure them that PIERs are common and often straightforward to fix. Explain that a PIER is simply a notice showing a difference between reported T4s and the CRA’s expected CPP or EI calculations. It could be as small as a single dollar, and common triggers include rounding errors, taxable benefit mismatches, or mid-year changes in pay frequency.
There’s a 30-day window to respond to the CRA, so there’s plenty of time to get the details sorted. By calmly explaining what a PIER is, why it happens, and how you’ll address it, you’ll replace their panic with a sense of control.
Guide clients with a clear action plan when managing a PIER.
Stepping in with a proactive plan immediately shows your clients they can rely on your expertise.
Some will want the full breakdown of discrepancies (the “show me the receipts” crowd), while others just want reassurance that it’s being handled and that you’ll update them on outcomes, like whether a payment is needed. A clear plan builds trust and highlights your strategic guidance.
Here’s how to keep it client-focused:
- Identify the issue. Reconcile reported T4s against CRA totals and spot discrepancies. Let clients know what triggers you’re watching for, from misclassified employees to payments made outside payroll. The key is to share your findings in a way that’s comfortable for them.
- Decide whether a response is needed. Determine if the CRA’s calculations are correct or if a response with corrections and an explanation is required. Reassure clients that this step is straightforward. There’s no need to submit amended T4 slips because the CRA will issue corrected slips if needed.
- Communicate outcomes. If the PIER shows a shortfall and a payment is required, break it down clearly. Explain how much is owed, why it matters, the timeline for payment, and how the process works.
Encourage questions along the way, and keep a running list of the ones that pop up often. This will become a helpful reference next year, allowing you to anticipate concerns and respond even faster.
Spot advisory opportunities.
Guiding a client through management of a PIER opens the door to bigger conversations. Beyond the calculations, it’s about the people who rely on payroll, the workflows behind it, and the risks that can quietly build over time. This is your moment to show how you protect the business and the team. Here’s how.
1. Focus on employees.
Start with what matters most: the people. Even small payroll adjustments can affect employee experience and trust, so show that this is top of mind as you handle the review. Reassure clients that:
- Any corrections to year-end forms will be handled smoothly, keeping employee deductions and benefits accurate.
- Employees may see updated T4s if changes are required, with a clear timeline.
- You’re available to answer employee questions they don’t have the answers to.
Highlighting these details shows you’re thinking like an employer, not just a payroll processor. It reinforces that you care about the people behind the numbers and builds confidence in your work.
2. Ask the bigger questions.
Once the immediate issue is under control, there’s an opening to dig deeper:
- How did this discrepancy happen?
- Was it a workflow gap or a manual process?
- Did payroll software limitations or tax configuration settings play a role?
For example, migrating payroll software mid-year can trigger discrepancies if Year-to-Date (YTD) data doesn’t transfer correctly. What seems like a small system change can quietly create reporting issues down the line. This is a good time to step back and consider whether the current setup supports accurate payroll and makes corrections simple when needed. Look for practical safeguards, such as:
- Automated CPP, CPP2 and EI calculations
- Automated remittance scheduling
- YTD integrity checks (review forms before filing)
- Proper handling of taxable benefits
- Built-in adjustment tools and off-cycle payrolls
By putting these safeguards into place, you’ll turn one PIER into an opportunity to strengthen payroll accuracy going forward.
3. Turn PIERs into future planning.
Once the dust has settled, schedule a debrief with your client to review:
- What triggered the PIER. Highlight patterns that could indicate systemic issues.
- What it cost in time and money. Quantify both the financial impact and internal resources spent — your professional time, additional reconciliations, or delayed reporting. This helps clients see the true cost and the value of preventative measures.
- What trends emerge compared to prior years. Are certain payroll periods or employee groups more prone to discrepancies? Highlighting these patterns helps catch recurring issues before they hit the CRA next year.
- What can change going forward. Recommend practical process improvements, and consider setting up a checklist or dashboard to track potential risk points proactively.
By reviewing these points, you’ll turn the experience into a roadmap for stronger internal controls, more accurate payroll, and a proactive partnership that positions you as a trusted advisor your clients can rely on year after year.
Your PIER playbook.
Looking for a visual step-by-step guide for managing a PIER report with confidence? Our playbook covers it all, from common client questions and answers to tips for navigating CRA paperwork, plus a complete overview of software features that help keep payroll accurate and error-free. Download the playbook.
