Hi Kari, you should have two accounts set up, the payable account for the Employee Portion only of 40%.  The 60% from the employer is an expense to the company so you should have a Benefit Expense Account.  Both of these will debit when you pay the Benefit Company and then Credits your Bank Account.  How that clears out the 40% payable is when you do your payroll.  The deduction amount on the payroll master should be set up to go to the payable account which will clear it out each month. As for the box 85 on the T4, I will have to think about that one.  Been awhile since I had to set up one up.