Group RRSP paid by employer

Question

We have a group RRSP plan and our employer contributes 50% and the employee contributes 50%. How do we set it up in Sage so that the employers amount is not taxable? We are currently showing it as part of our income and getting taxed on it. Can we set it up so no taxes are taken? 
 Thanks,

Agate · Answer

Janchristie: 
 In the employee file in Sage 50 setup an RRSP employee deduction amount and account for the 50% contribution by the employee as a payable. The employer portion is an expense for their share of the contribution to the employees group RRSP. When the group RRSP is recorded it will be a debit to RRSP benefit expense for the employer 50% portion and a debit to the employee portion RRSP payable account for the balance of the 50% employee portion. I hope this answers your question!

Sage 50 Canada

Group RRSP paid by employer

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