Option 1: Check the Calculate Tax checkbox. - Open the employee record.
- Select the Taxes tab.
- Check the Calculate Tax checkbox for each employee.
- Repeat for each employee.
- Click Save and Close.
Option 2: Have you updated the basic tax exemptions for your employees? - Go to Maintenance, then Update Employee Claims.
- Select Federal/Provincial.
- On Provincial, select the designated provinces assigned to your employees.
- Select all active employees.
- If all employees have a Basic Personal Amount amount, click Update Basic Personal Amount.
- If not, manually enter the employee's personal tax credit amount
- Check if there’s an amount in the Other Indexed Amounts or Non-Indexed Amounts columns
- If the amount in the Non-indexed and Other indexed aren’t valid, remove it
- Select Close when done.
Option 3: Did you set up the income properly? - Go to Setup, Settings, Payroll, Income.
- Verify that the Income has Calc. Tax or Calc Tax (Que) checked and click OK.
- Open the Employee Record, and click the Income tab.
- Verify that the Amount per Unit and Hours per Period are correct.
Option 4: Did the employee already accumulate enough YTD to be taxable? (Not getting paid enough) - If an employee works part time, verify their YTD is sufficient to deduct taxes.
- To verify you'll need to cross-check their current YTD toward the Employee Tax Credit.
- Create a new paycheque. In the income section, enter 99999 hours or a 99999 salary amount.
- If taxes start calculating, it's possible that the employee didn’t earn enough to get taxed on.

- Confirm with the CRA's PDOC calculator and double-check with the accountant if the calculation is accurate.
Option 5: I’ve had a power outage or computer crash - Close Sage 50, reboot the computer.
- Open Sage 50 again and open the Paycheques journal.
- Select the Calculate taxes automatically icon on the toolbar.
- If steps 1-3 don’t work.
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