Bonus not taken as pay but put into Company RRSP account for the employee

Question

How do I set up the Deduction entry so that the Bonus shows on the Pay stub and then is allocated to the RRSP account. Where in the Settings do I set this up? Also how do I set up the Bonus that it doesn't add the 4% Gross to the RRSP account.

Agate · Answer

Swan: 
 The Bonus income and the RRSP deduction have to be setup. Go to Setup, Settings, Payroll, Incomes and create a Bonus Income. Ensure the column items are ticked off or selected to reflect the calculations. The same goes for the RRSP deduction! Go to linked accounts and ensure you have accounts associated for the Bonus and RRSP. Go to the employee record and turn on the Bonus income and the amount of the RRSP deduction. Once done create the pay cheque to reflect the Bonus and RRSP. 
 Hope this helps!

Agate · Answer

Swan: 
 Bonuses are taxable! Employer paid RRSP's for an employee are taxable as a benefit! 
 If the RRSP deduction is done through Payroll, it generally goes to RRSP Payable not an expense. 
 If you want a zero cheque printed with $1000.00 as a benefit and $1000.00 as a deduction, the employee will still end up with $1000. being taxable but the employee will also have the benefit of a $1000. RRSP deduction at tax time.

Sage 50 Canada

Bonus not taken as pay but put into Company RRSP account for the employee

COMMUNITY

COMPANY

PARTNERS

SUPPORT & TRAINING