The Provincial/Federal Tax isn’t automatically calculating while EI or CPP is calculating
Description
Cause
Resolution

Option 1: Check the Calculate Tax checkbox.

  1. Open the employee record.
  2. Select the Taxes tab.
  3. Check the Calculate Tax checkbox for each employee. 
  4. Repeat for each employee.
  5. Click Save and Close.

Option 2: Have you updated the basic tax exemptions for your employees?

  1. Go to Maintenance, then Update Employee Claims.
  2. Select Federal/Provincial.
  3. On Provincial, select the designated provinces assigned to your employees.
  4. Select all active employees.
  5. 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
  6. Select Close when done.

Option 3: Did you set up the income properly?

  1. Go to Setup, Settings, Payroll, Income.
  2. Verify that the Income has Calc. Tax or Calc Tax (Que) checked and click OK.
  3. Open the Employee Record, and click the Income tab.
  4. 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)

  1. If an employee works part time, verify their YTD is sufficient to deduct taxes.
  2. To verify you'll need to cross-check their current YTD toward the Employee Tax Credit.
  3. Create a new paycheque. In the income section, enter 99999 hours or a 99999 salary amount.
  4. If taxes start calculating, it's possible that the employee didn’t earn enough to get taxed on.

  5. 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

  1. Close Sage 50, reboot the computer.
  2. Open Sage 50 again and open the Paycheques journal.
  3. Select the Calculate taxes automatically icon on the toolbar.
  4. If steps 1-3 don’t work.
Steps to duplicate
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