Employee Paid as Expense, Should Have Gone Through Payroll

Question

One of our employees received a benefit from the government that we paid straight out as an expense claim, later to find out it should have gone through payroll as a wage and subject to CPP, EI and Tax. How do I fix this in SAGE 50?

Erzsi_I · Answer

Hi lauren2018 , 
 Thank you for reaching out. To correct this in Sage 50, please follow these steps: 
 
 Create a backup of your data before making any changes. 
 Navigate to the Paycheques icon on the main screen of Sage 50 Accounting. 
 In the Payroll Journal, go to the Paycheque menu and select Adjust Paycheque. 
 Use the Search window to find the paycheque you wish to adjust and select it. 
 Enter the necessary adjustments to reflect the payment as a payroll transaction subject to CPP, EI, and Tax. 
 Click on Process to complete the adjustment. 
 If prompted about the cheque number being out of sequence, choose 'No' to keep the same cheque number, or 'Yes' to use the next available number. 
 If adjusting income on the cheque, ensure that taxes are recalculated correctly by selecting the 'Recalculate Taxes' button. 
 
 Please note, if you're unsure about making these adjustments, it would be wise to consult with a qualified Sage business partner or a Sage customer support analyst to assist you further. 
 For detailed instructions and illustrations, you can refer to the article titled "How to adjust a payroll cheque" on the Sage Knowledgebase here . 
 If this helps, please mark it as verified :) 
 Warm Regards, Erzsi

Sage 50 Canada

Employee Paid as Expense, Should Have Gone Through Payroll

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