varying pay periods

Question

Our normal pay period is bimonthly (24 pay days) 
 One person's payroll does not make sense because some periods, his pay stub is correct (march1-15, then 16-30) but some months, the pay stub is incorrect (april1-15, then 25-31). 
 The bi-monthly salary based on yearly wage is correct for all pay stubs. 
 I am not sure if this was done by the person before me in payroll. 
 I am wondering if this could have changed the tax amounts at all? CPP / EI / Income tax 
 Am I able to edit the dates on the paystub for this person without it have consequences for year end T4 or any further confusion? 
 He is under the impression that somehow he has paid more in taxes because of this. 
 Please help me solve this problem.

Agate · Answer

Hi Habsy: 
 As long as you have up your pay periods for 24 pays within the individual's payroll income folder the payroll taxes should not be affected. You can edit the pay cheques if you wish, but the results will be the same.

Agate · Answer

Hi Habsy: 
 You must standardize your payroll by pay period. You have the choice to set it up the way you want. However if someone is just getting random payroll payments willy-nilly then as far as CRA is concerned whether you are paying weekly, bi-weekly, semi-monthly, monthly or yearly for the payroll the rates apply even if they seem extravagant. You can try(test) the different pay periods with the employee and find the one that works best with the employee's annual income before posting.

Agate · Answer

Hi Habsy: 
 Is your auto calculate turned off or are you entering manually without calculations? If the wage amounts are small there is no CPP and possibly no EI. If you have started to do payroll for 2021 Sage turns off the auto calculate function for 2020 and insists to the user to enter everything manually. 
 Hope this helps!

Agate · Answer

Hi Habsy: 
 You may be missing some pay stubs! Run an Employee Detail Report for 2020 and see what is missing! 
 Hope this helps!

Agate · Answer

Hi Habsy: 
 For the 6 pay periods print a report for each employee that had CPP & EI charged on RRSP contributions. Reverse or void the erroneous pays. Go into Setup, Settings, Payroll, Deductions or Income depending upon where the RRSP is located and ensure the columns are unticked so RRSP is not taxed, click OK, then do your pay cheques again. Put the CPP and EI difference to Tax so the cheque amounts are the same. The employee will get the income tax back when their income taxes are submitted to CRA. 
 Another way after reversing or voiding the paycheques affected by the RRSP being taxed and correcting the Setup, depending upon on what difference is owed or not from the employee make a pay cheque to the employee or take it away on the next pay cheque. Ensure you code to the proper accounts for EI, CPP & Tax and ensure it is reflected in 2020. 
 If this is too complicated, please reach out to me and I would be more than happy to provide a billable service to solve your issue.

Sage 50 Canada

varying pay periods

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