How to Fix Incorrect Payroll Taxes Calculation Problem
Various organizations have started using Sage software. The software makes daily accounting tasks and tasks related to finance much easier for startups as well as mid-size organizations too. No wonder, it has become a popular software as a user from a non-finance background can use it too.
There might be situations where there is a payroll taxes related problem while working on the software. In these cases, get in touch with the skilled group of Sage experts at Accounting Advice. You just have to call on the toll free Sage 50 payroll support number 1800-961-4623.
Let’s discuss more about the payroll taxes calculation problem.
Reasons & Resolutions
Incorrect settings of the Sage 50 can result in the payroll taxes related problem, especially after an upgradation. The following scenarios can be there:
Prior to Starting:
While comparing to the CRA Payroll Deduction Online Calculator (PDOC) site, make sure that the calculations are based off of Gross Pay and not Net Pay.
Check if You are in History Mode
-Check if there is a History menu beside the Help Menu. If yes, then do the following:
- Select the ‘Calculate taxes automatically’ option in the Paycheque module.
- The other way can be to close History before continuing. Take help of Sage experts in case of doubts.
Verify if you have installed the latest tax update?
-Choose ‘Help, About Sage 50’
-Check if you are working on the new release of Sage 50.
Verify if the Payroll ID is active?
-Choose ‘Help, About Sage 50’ Support Info.
-Confirm if the Payroll ID is Active.
- Choose Help, Update Service Plan. If this is not working, try the following steps:
- Choose Help, Unlock Payroll
- Choose Enter Payroll ID button.
- Confirm your Account ID
- Type in the Payroll ID.
- Press OK
Step 1: Check if you have updated basic tax exemptions for your employees
- Choose Maintenance, then Update Employee Claims.
- Choose Federal / Provincial. If Provincial also select the province in case you have employees from multiple provinces.
- Choose all employees that are current in your system still.
- Click ‘Update Basic Personal Amount’ to update the amounts for employees taxes if all employees have the basic claim amount . If it is not manual, then enter the employee personal tax credit amount.
- Choose Close after finishing.
Step 2: Check if you setup the income properly
- Choose Setup, Settings, Payroll, Income
- Choose that the Income has Calc. Tax or Calc Tax (Que) checked.
- You have to open the Employee Record, click on the Income tab.
- Verify the Amount per Unit and Hours per Period are correct.
Step 3: Settings for automatic taxes calculation
- Open the Paycheques journal.
- Create a paycheque as you normally do.
- After earning amounts are typed in, click on the Taxes tab.
- Verify whether the EI and CPP tax boxes are white or grey. Consult Sage Experts to know more.
There are further advanced steps and resolutions. For more details, contact Accounting Advice. They will offer you instant solutions and assistance.
What is Accounting Advice?
The Accounting Advice is a technical team of drilled Sage 50 tech support experts who can help you to solve any issue related to Sage software. They can help you during the upgradation procedure and also provide tips for an enhanced work experience. The team is available 24*7. Call on the toll free number 1800-961-4623.
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