Hi Kari Len ,

Thank you for reaching out and apologies for the delayed response. From the information provided, it appears you are handling payroll entries manually and are inquiring about distributing benefits, specifically with a 60/40 allocation, and how to adjust the payable benefits accordingly. 

Here's how you can deal with the benefits as per the Sage Knowledgebase:

1. Creating a New Benefit:

   • Go to Setup > Settings > Payroll > Incomes.
   • Change the income type to 'Benefit' and select the appropriate taxes.
   • Link the new benefit to the wages account or another expense account from Setup > Settings > Payroll > Linked Accounts > Incomes.

2. For Employee and Employer Portions:

   • You will also need to set up an employer expense account for the employer's portion of the benefits.
   • Go to Setup > Settings > Payroll > Other Expenses and set up the employer's additional contribution.

3. Automated Transactions:

   • You can set automated transactions for the beginning of the month for the employer’s portion by defining it in the User-defined Expenses section and linking the appropriate accounts.

For your journal entry concerns, here’s how it could look like considering the 60/40 split:

• For the employee portion (60%), it would typically be recorded as a benefit deduction from their payroll.
• For the employer portion (40%), it will be recorded as an expense on the employer's side, affecting your expenses and liabilities accounts.

For a detailed guide on setting up group benefits, like RRSP or MSP, you can refer to the second article you've mentioned, which provides step-by-step instructions on creating these types of benefits and linking them to the appropriate accounts.

It's important to tailor these steps to your specific 60/40 split scenario and make sure that both employee and employer contributions are recorded accurately. If the benefits expense account is being affected differently, you may need to adjust the linked account or the manner in which the entry is being recorded to reflect the true nature of the transactions.

You can find detailed guidance and illustrations in the articles below:

• How to create a new payroll benefit
• How do I create group benefits, such as a Group RRSP, MSP?

Hope this helps! If it does, please mark it as verified :)

Warm Regards,
Erzsi

HI, Is the 90 dollars both the employer and employee portion total?

Pretending that this is the only paycheque for the month and the $90 is the employee's 40% portion for the month, then you originally debited the Benefits expense account with $225.  However, by the end of the month after all payroll is done, then it should be a company expense of $135 with the employee paying $90.

Link your Benefits Payable above entry for $90 to the Benefits Expense account instead of a liability account.  Then this will reduce the company expense on each paycheque automatically.

If you send it to the liability account like it looks, you will have to do a general journal entry each pay or each month to reduce the company's expense.