Hi, Diane.  I do have to correct you, because you are wrong.

The amount that the company adds to the employee's pay for the company share of RRSP contributions is, for T4 reporting purposes, PERFECTLY ORDINARY BOX 14 INCOME.  For employees who are old enough to have RRSP room, this income will be offset by an RRSP receipt when they file their tax returns, but this 2nd step does not change the fact that you, as the employer, have given them some extra money by virtue of their employment.

Hi, thank you so very much for replying!  So even if we haven't added the contributions to the EE's RRSP as they haven't reach the guidelines to be eligible for that amount? (eligibility is based on continuous 2 years of employment, which is a silly amount of time and it's being looked into)

We wanted to show the company portion match on their pay stubs, which is fine for the employee's who are entitled to this portion, but for those who are not yet entitled, is added income, which is why I am saying, this amount  - non eligible match should not appear on their T4's.....

So you did some payrolls showing that money was going to go into an employee's RRSP account, and then the money didn't go into the RRSP account.... what actually happened to the money ear-marked for RRSP contributions?

Since you're probably trying to get T4's done, and I'm not sure I'll be checking back on this website before next week, here are some thoughts on where you probably need to go from here:

IF THERE WERE PAYROLLS RECORDED SAYING THAT THE BUSINESS WAS GOING TO PUT $ INTO THE EMPLOYEE'S RRSP, AND NO MONEY ACTUALLY WENT TO THE RRSP, AND THE EMPLOYEE DIDN'T GET THE MONEY SOME OTHER WAY - then the payrolls are wrong.  You will have to correct the payrolls before you can do the T4's.  This can be done by manually opening up each 'bad' payroll entry and correcting it, or by doing one dummy payroll at December 31 for each employee with erroneous year-to-date amounts for company RRSP contributions.  Generally, correcting the payrolls one at a time is preferable if your fiscal years and using dates allow this.

To avoid bank reconciliation problems, you will need to make sure that your net pay does not change as a result of these corrections.  You will need to carefully think through what the CPP and EI should be for these employees as well.  If you are not comfortable with manual CPP and EI calculations yourself, I would recommend getting help from your business's year-end accountant.

IF THERE WERE PAYROLLS RECORDED SAYING THAT THE BUSINESS WAS GOING TO PUT $ INTO THE EMPLOYEE'S RRSP, BUT THE MONEY WAS ACTUALLY PAID TO THE EMPLOYEE RATHER THAN GOING TO THE RRSP - then treating the 'company RRSP' amount as ordinary Box 14 employment income is fine, and you don't have to do any adjustments before doing your T4 slips.

That money is currently sitting in an accruing account.

OK.  From what you've said, there is no intention to actually pay the money either to the employee or to their RRSP, as they weren't entitled to it.  This means that you have do have to correct the payroll to show that the did NOT actually earn this money.  See my 2nd and 3rd paragraphs in my prevous reply.  This will correct the T4, and also (hopefully) clear up your accruing account.

I try to reconcile my accruing accounts monthly - and, if something isn't clearing out, figure out what went wrong.