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MichelleH

Assigning CRA Remittances for Employee Benefits to proper Accounts

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Hi,

I am clearing my bank transactions and have a question regarding my CRA Remittances for employee benefits.  Specifically, I have  a single transaction that includes EI, CPP and tax deductions.  I split the transaction to break it down into each different account:

1.  Employee CPP Contribution

2.  Employer CPP Contribution

3.  Employee EI Contribution

4.  Employer EI Contribution

5.  Tax Deductions

The first four are a non-issue.  The "Tax Deductions" is where I am unsure of the proper account to assign the remittance amount to.  Is someone able to tell me if the proper sage account is "Income Tax Expenses" (account 6450 in my chart of accounts corresponding to GIFI Code 9990)?

Thanks,

Michelle

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    Hi  ,

    Thanks for your detailed question regarding assigning CRA Remittances for employee benefits in your transactions. It sounds like you're on the right track with categorizing the EI, CPP, and tax deductions.

    Given that "Tax Deductions" seem to be the point of uncertainty, using an account such as "Income Tax Expenses" (account 6450) aligns with typical accounting practices for remittance purposes. If you're using Sage Payroll with Sage Accounting, you can follow these guidelines for further accuracy:

    1. Check Sage Payroll Categories: Refer to this guide on how to properly set up or adjust your payroll-related accounts, ensuring your remittances reflect accurately: Setting Up Sage Payroll Accounts.

    2. GIFI Code Assignments: If GIFI codes play a part in your reporting, make sure your expense categorization aligns with how they are used for CRA reporting.

    3. Updating Company Information in Payroll: For any adjustments in how your payroll data flows into Sage, this article may be helpful: Editing Company Information - Sage Business Cloud Payroll.

    If this helps or if you have further questions, feel free to let us know!

    Warm Regards,
    Erzsi

    If this helps please mark it as verified :)

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    Hi ErzsI_I,

    Thank you so much for the help below.  I am still working on a solution to my question above and was wondering if you could provide further insight:

    I signed up for Sage Payroll and it is very helpful as it "auto populates" the correct account for each of the above remittance accounts.  I am still trying to clear banking transactions that occurred prior to this.  Sage payroll indicates that the proper account for Tax deductions is one that is only available (Visible) for Journal entries.  Is there a work around for this (so that I can clear the bank transaction for these payroll remittances) or do I have to create a journal entry for each one and then "match" the transaction?  It seems like a lot of extra work when only 1 of the 5 accounts aren't visible.  

    Thank,

    Michelle

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