WSB calculation on Taxable Benefits-Sage 50 Premium

SUGGESTED

WSB/WSIB is set at 2.06% for each employees. However, WSB is not calculated on an taxable benefits (.e.g. Llife/ADD, RRSP etc.). The income items are set to a "benefit" type. Calculations for tax, CPP, and EI are correct but WSB is not calculated. Is there way to correct this?

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    SUGGESTED

    Hi  ,

    Thank you for reaching out. There are a few reasons why WSB/WSIB might not calculate on a non-taxable benefit. One common cause is that it will only deduct on incomes that are set up to include federal tax calculation in the payroll settings. If your preset benefits income line isn't set up this way, WSB won't calculate automatically.

    Here are some steps to try:

    1. Ensure that the income line for the benefits in question is marked to calculate taxes. You can do this by going to Setup, Settings, Payroll, Income, and then checking the 'Calc Tax' option for the relevant income lines.

    2. If the benefits should not be taxed but still need WCB calculated, you might need to use a workaround. Calculate the WCB amount manually and then enter a general journal entry to adjust the WCB accounts, as outlined in the articles.

    3. Verify that you have linked accounts set up for WCB/WSIB payable and expenses. Without these, WCB/WSIB will not calculate. You can set these up in Setup, Settings, Payroll, Linked Accounts, Taxes.

    If after these steps you're still encountering issues, it could be that the maximum contribution limit has been reached, or there may be a need to adjust settings within the individual employee records.

    For more detailed guidance tailored to your situation, please see the following articles from our Knowledgebase:

    If you require further assistance, don't hesitate to reach out to our support team, or if you would like to see an enhancement in the system to address this issue more seamlessly, please refer to the article on how to submit enhancement requests for Sage 50 Canadian Edition.

    Warm Regards,
    Erzsi

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    It is my understanding the WCB is not calculated on taxable benefits such as health/dental plans, Life Insurance plan etc. In BC I was told to break out the taxable benefit from the wages then submit WCB.

    You may want to contact the WCB office in your province to verify.

    Heather

  • 0 in reply to Smith and Co

    Re: WCB in BC:  I just got a memo from WCB about changes to their assessment policy effective Jan 1 2024.  Essentially, they've decided that taxable benefits SHOULD now be subject to WCB!

  • 0 in reply to C White

    Good to know! Thanks!

    H