How do I post Employee paid benefits?

Question

I have employee benefits payable by the company for an employee. These are considered a taxable benefit included in Box 40 on the employee's T4 and I have set them up as such. Now another benefit has been added. This one is non-taxable and payable by the employee. The company pays the entire premium for all benefits to the insurance company, Including the employee payable portion, in one lump sum by automatic withdrawal from the bank. I need to set up the employee paid portion to be deducted from the employee's pay cheque. I also need to remove that same portion from the 5000 Employee Expense account. I would like to have these postings done in one entry through the payrole module. Can anyone tell me how I might do this? Thanks.

Smith and Co · Accepted Answer

Go into Settings -> Payroll -> Names -> Inc&Ded -> select a deduction and rename it to BenDed (name it whatever you want but you are only allowed 12 characters). 
 Then go back to left menu and select Dedcutions under 'Payroll' and ensure that all columns have a tick mark since you want to deduct the benefit after all taxes. 
 Now in left menu go down to Linked Accounts -> Deductions and enter your 5000 expense account in the Linked Accounts column. No need to enter anything into the Payment Adjustment Account. 
 Now go back into your employee profiles - select the deduction tab and put a tick mark next to the BenDed name along with the amount to deduct every pay period. 
 Now you should be able to post the employee(s) paychq with the deduction coming off their paychq and at same time it is reducing the 5000 expense account. 
 Another method is to post the Premium invoice into 2 account - the company paid portion for 5000 expense and the other portion being paid by employees would go into a 2000 liability account. Then do same as above but use the 2000 liability account nbr instead of the 5000 expense acct nbr. This will track the 2000 general ledger to ensure that all employees are being deducted this amount - sometimes an employee will miss a payrperiod so a catch up amount needs to be deducted. 
 Hope this helps.

Sage 50 Canada

How do I post Employee paid benefits?

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