Incorrect benefits year to date total (YTD) on T4 and RL-1

How to adjust T4 and RL-1 when the benefits year to date total (YTD) is too high or low in Sage 50 Accounting.

The benefit is too high

1. Manually calculate the difference for the benefit for the year.
2. Manually calculate the tax amount for each affected taxes for the year.
3. Create a paycheque. Enter December 31 of the year in question as the date.
4. Zero out all values in every tabs.
5. Enter a negative amount for the benefit in question.
6. For each affected taxes, enter its negative value.
7. The paycheque's net will be positive.
8. Print the paycheque and hand it to your employee.
9. Post the paycheque.
10. Repeat the steps if you have more employees with incorrect benefits.
11. Print your T4 or RL-1.
12. If you already paid the payroll remittances, the Canada Revenue Agency will have to give you a refund.

The benefit is too low

1. Manually calculate the difference for the benefit for the year.
2. Manually calculate the tax amount for each affected taxes for the year.
3. Create a paycheque. Enter December 31 of the year in question as the date.
4. Zero out all values in every tabs.
5. Enter a positive amount for the benefit in question.
6. For each affected taxes, enter its positive value.
7. The paycheque's net must be negative.
8. Click Reports, Display Payroll Transaction Detail.
9. Print the journal entry.
10. Post the paycheque.
11. Repeat the steps for if you have more employees with incorrect benefits.
12. Consult a professional accountant.
13. Decide if the employees will pay the difference or if the company will expense it.

     

The employee will pay the difference

1. Record a general journal entry of the payment received from the employee to the payroll bank account.
2. A debit (employee's payment) and credit (posted paycheque) will show up on n the bank reconciliation.
3. Print your T4 or RL-1.

The company will expense the difference

1. Record a general journal entry to the payroll bank account.
2. Debit the amount due and credit the posted paycheque.
3. Print your T4 or RL-1.