In previous version of Sage 50, if you no longer want to deduct income tax of a particular employee, you will need to go to that employee record, Taxes tab and increase the federal and provincial tax credit to an unbelievable large amount, so no tax can be deducted on the paycheuqe.

This alternative solves the main issue. However, when you open the Employee Summary Report, the fake amount of Federal and Provincial Claim show in the report as the following screen shot.

In Sage 50 2015, this side effect is taken care of. In employee record, Taxes tab, you will see a new check box called “Calculate Tax” under Tax Deduction section. It is checked in default for all employees. Once you uncheck it, income tax will no longer be deducted from that employee’s paycheque no matter what tax credits are used. You can take a look at the screen shot below for the setting.

For other updates implemented in Sage 50 2015, please pay attention to the upcoming blog. See you next week.