I'm using Sage 2014. We are owner / operators in our business (2 of us). We started taking payroll Jan 2014. Jan, Feb, and Mar I deducted EI and then realized I shouldn't be doing that because we are self-employed. I went in to each payroll transaction and reversed the EI payments once I realized the error (in April 2014) by adjusting each transaction and simply zeroing the EI portion of the transaction. I contacted CRA and asked them to apply the EI payments to my account for the 2014 year. I based the amount on the credit that was applied when I reversed the payroll transactions for Jan, Feb and Mar 2014. In July 2014 a representative did a payroll audit and determined I took back too much money. She verbally told me I had to pay $618.05, in back payments (they labelled this failure to pay), $2.00 interest and $11.81 penalties for a total of $631.86 (but I paid $632.86). She said if I did not pay it right away interest and penalties would continue to accrue. I went to the bank the same day (Sept 3) and made the payment via a withdrawal from my checking account but to date I have not recorded the transaction in Sage 50. Now I need help entering this payment.
The statement I finally received from CRA today indicates:
previous balance $632.86 cr
Federal tax $314.42 dr
Provincial tax $106.90 dr
Interest $3.00 dr
balance $208.54cr
A normal remittance payment for me looks like this example from August:
Account # Account Description Debit Credit
(J143) August 2014, Receiver General
2185 CPP Payable 1081.20
2190 Federal Income Tax Payable 3027.84
2100 Accounts Payable 4109.04
(J144) Cash, Receiver General
2100 Accounts Payable 4109.04
1060 Chequing Bank Account 4109.04
_________ _________
8218.08 8218.08
I tried to enter a general journal entry using the same methodology but I could not use the accounts payable 2100. Help! How can I enter this payment? I tried contacting sage help via online chat and sad to say, found it very disappointing and frustrating.
