Summary
How to resolve the issue when Sage 50 Accounting isn’t calculating accurate income tax on paycheques.
Description
- The benefits settings will always increase the gross pay and in most instances are subject to income tax
- You can find the exceptions in non-taxable benefits on the government of Canada website
Cause
Incorrect settings in Sage 50.
Resolution
- Verify whether the payroll taxes are incorrect or not calculating at all
- Compare the tax calculations to the Canada Revenue Agency (CRA) Payroll Deduction Online Calculator (PDOC)
- When comparing to the CRA website, ensure that the calculations are based on Gross Pay and not Net Pay
EI calculates incorrectly
The EI Employee deduction amount on the paystub is incorrect.
CPP calculates incorrectly
The RRQ / CPP amount doesn’t match my calculation using the government tables.
Federal / Provincial Tax calculate incorrectly
The automatic federal (or provincial) payroll tax calculation is incorrect.
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