How to submit payroll deductions to Canada Revenue Agency (CRA)?

1. Click Edit, Vendor Details.
2. Enter the Vendor No and Name
3. Click Save

Step 2: Check the general ledger (GL) account for Income Tax, CPP, EI

1. Click Utilities, Payroll Setup, Departments
2. Take notes of Income Tax payable, CPP payable and EI payable account numbers
3. Close the screen

Step 3: Prepare the remittance amounts for the month

1. Click File, Print Reports
2. Select Payroll, then Pay journal and Receiver General report
3. Select First and Last to run the report for all employees
4. Select the start date and end date for the reporting month
5. Click OK
6. When the report comes up, go to the last page
7. The Total Due column will tell how much Income tax, CPP, EI and the total amount to submit

Step 4: Enter an invoice for the Receiver General Payroll vendor

1. Make sure that AutoPost is OFF at the bottom of the screen. If it shows AutoPost ON, press F8 to turn it OFF.
2. Click Edit, Accounts Payable
3. Select the Receiver General vendor account such as RECGENPAY
4. Click New Item (Ctrl+N) icon
   • Type: Invoice
   • Date: the end of the month. This is important to use the end of the reporting month so that the GL balance will be cleared properly.
   • Reference no: enter the reporting month. For example Jan 2024
   • Total amount: the Total in step 3
   • Clear the tax amount.
   • Click OK
5. When the journal entry screen display, modify the journal entry as below:
   • Accounts Payable: Enter the Total Amount in Credit column
   • Income Tax Payable: Enter the Income Tax amount in Debit column
   • CPP Payable: Enter the CPP amount in Debit column
   • EI Payable: Enter the EI amount in Debit column.
6. Modify the memo if needed.
7. Click Post

Step 5: Apply the payment

When you pay CRA, enter the payment in Accounts Payable as normal. The date should be the payment date.