Payroll for employees working in more than one province in the year.

SUGGESTED

The company I work for does projects across the country.  Some employees work in more than one province during the year as a result.  How should I process their payroll so T4's are generated for each province worked in (with the least amount of manual calculation)?

Parents
  • 0
    SUGGESTED

    Valerie, you are correct that 2 T4's are needed.

    Sage is so-so at doing the required calculations.  You will need to create 2 employees, for example Jane Smith (BC) and Jane Smith (AB).  Set the province of employment to BC and AB, respectively.  Each payroll, you will use ONLY ONE of these employees - pick the one for the province where Jane worked most that pay period.  At the end of the year, Sage will produce 2 T4's for Jane, one with BC as the province of employment and one with AB as the province of employment.  So far, so good.

    The kicker is that Sage honestly things Jane (BC) and Jane (AB) are separate people, so Sage will take maximum CPP and maximum EI from each Jane.  The rules actually say that Jane should only pay the maximum CPP and the maximum EI once, so you will need to keep an eye on the total CPP and EI between Jane (BC) and Jane (AB), and manually stop taking CPP and EI when the maximum is reached.

    If you choose to stop taking CPP and EI by unticking the 'take CPP' and 'take EI' boxes in Jane's profiles, remember to turn them back on before (a) doing her T4's and (b) doing her first payroll of the new year.

Reply
  • 0
    SUGGESTED

    Valerie, you are correct that 2 T4's are needed.

    Sage is so-so at doing the required calculations.  You will need to create 2 employees, for example Jane Smith (BC) and Jane Smith (AB).  Set the province of employment to BC and AB, respectively.  Each payroll, you will use ONLY ONE of these employees - pick the one for the province where Jane worked most that pay period.  At the end of the year, Sage will produce 2 T4's for Jane, one with BC as the province of employment and one with AB as the province of employment.  So far, so good.

    The kicker is that Sage honestly things Jane (BC) and Jane (AB) are separate people, so Sage will take maximum CPP and maximum EI from each Jane.  The rules actually say that Jane should only pay the maximum CPP and the maximum EI once, so you will need to keep an eye on the total CPP and EI between Jane (BC) and Jane (AB), and manually stop taking CPP and EI when the maximum is reached.

    If you choose to stop taking CPP and EI by unticking the 'take CPP' and 'take EI' boxes in Jane's profiles, remember to turn them back on before (a) doing her T4's and (b) doing her first payroll of the new year.

Children