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Payroll taxes are calculating incorrectly

Created on  | Last modified on 

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

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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