What is a PIER review and why is my Ontario business getting one from CRA?

PIER stands for Pensionable and Insurable Earnings Review, and it's a specific program CRA runs to check that the CPP and EI deductions your business reported and remitted actually match what should have been withheld based on the earnings you reported for your employees. If you're getting one, it usually means CRA's system has flagged a discrepancy between reported earnings and reported CPP/EI amounts — it's a targeted, calculation-driven check, not a sign that your business is suspected of broader wrongdoing.

It's worth understanding that a PIER review is a narrower, more routine process than a full payroll audit. It's focused specifically on whether your CPP and EI numbers add up correctly given reported earnings, rather than a comprehensive look at every aspect of your payroll compliance. Being selected for one is closer to a lighter-touch administrative check than an accusation, similar in spirit to how a CRA review differs from a full audit more generally.

That said, it shouldn't be ignored. If the review does find a discrepancy, your business can end up responsible for a shortfall plus possible penalties and interest, so responding promptly and providing accurate records is the best way to resolve it efficiently and limit any additional cost.