If you use Remittances, and you show a negative amount in accounts payable, it's either that:

- you're paying the remittance before it's due, or

- you've switched the 'End of Remitting Period' and Payment (Cheque) dates.

The remittance amount should show as an Accounts Payable amount, from the end of the Remitting Period, to the Payment Date.  

If your CRA remittance was for August, and it's due on Sept 15, recording a Remittance will move all the amounts to be remitted out of the CPP, EI, and Tax Payable accounts as of Aug 31, into Accounts Payable, and record a second JE as of Sept 15 to record the payment.

You can, of course do it any number of other ways.   For financial presentation to a bank, they may want to see all your Government debt separately, and using Remittances will lump it in with the other payables in one G/L account.

Randy

RandyW said:

...For financial presentation to a bank, they may want to see all your Government debt separately, and using Remittances will lump it in with the other payables in one G/L account.

I thought the Remittance function does not post the payable until the payment date.  So technically it is on the balance sheet in separate G/L accounts until the payment is made but the accounts payable entry is back dated at that time.

Thanks for your input everyone, I just needed clarification! That helps a lot.

Yes.   The Remittance function makes the two entries on the appropriate dates.  

With one click:

This also makes the remittance report show the correct numbers for the amount due at all times.  If I enter a remittance and am hit by a bus at lunchtime, someone else checking the report for that remitting period can see that there's no amount due, and see the payment. 

Yes.   The Remittance function makes the two entries on the appropriate dates.  

With one click:

This also makes the remittance report show the correct numbers for the amount due at all times.  If I enter a remittance and am hit by a bus at lunchtime, someone else checking the report for that remitting period can see that there's no amount due, and see the payment. 

Ok so I want to make sure I am doing this correctly.  The finance girl was laid off last year and I was put in her place with no accounting background what so ever.  I figured out how to do the payroll remittance by opening the past ones she did. So here is what I do:

Reports/Payroll/Employees

Report Type: Detail

Select All

Start: the first or the 16 of each month

Finish: the 15 or last day of each month

This gives me the GROSS (what I enter in the Payroll Remittance Form)

I compare the Net Pay with the DD Log to make sure it matches

Then I print the following:

Report/Payroll/Deduction and Expenses

Start and End : same as above

Select: CPP, EI, TAX

That gives me the amounts to pay along with the number of employees for that period.

Now that I have those numbers I go to my recurring payables and I post it as follow:

2185 CPP Payable

2180 EI Payable

2190 Witholding Tax Payable

If my remittance are for the 1-15 i post it as the 16.

If my remittance are for 16-31 I post it as the 1st.

That is what I am not sure that I am doing correctly.  Should I post it as of the 15 or the 31?

Then when I want to make the payment i go to:

Payment/Pay Purchase Invoice

Then I post it as of the day i pay it

Since I am starting a new year I want to start it properly.  Can someone tell me if I need to tweak anything?

Thanks,

LaChapa