18- Payroll Remittance, Source Deductions

Source Deduction Calculation & Remittance

There are two ways of figuring out balance owing to CRA for Source Deductions.

In this tutorial I will show you how to look up, record and pay this amount to CRA.

First you need to know how much to pay.

Go to Reports, Financials, Transactions by Account or General Ledger (depending on the version of Sage 50 you have).

See Below.

SD Transaction by account

 

 

 

 

 

 

Choose the date that you need to remit source deductions for. Mine is January 1 – 31, 2015. and the balance is due by February 15, 2015.

I have highlighted the 3 accounts I need and the report will sort by Date.

click ok.

SD Report

 

 

 

 

 

 

 

I exported my report to Excel just so I can shrink it for this tutorial.

Yours will look a bit different being printed directly out of Sage 50 program.

SD Reports in Excel

 

 

 

 

 

 

 

Now we know how much to pay. these amounts include both employee and employer portion.

No other calculation is required.

EI is $351.15

CPP is $683.56

Tax is $883.50

Open purchases journal and pull up Receiver General or what ever Vendor name you have for CRA.

From the top:

Transaction  = Invoice

Payment Method = Pay Later

Invoice no = I have my own invoice # (Jan2015 Payroll SD) SD is for Source Deductions. you can adopt any system you like.

Date = the pay period ending date which for me is Jan 31, 2015.

and in the body of the invoice I have recorded the amounts owing and posted them to the appropriate liability account.

the balance to be paid is $1,918.21.

process

SD Payable Entry

 

 

 

 

 

 

 

According to CRA this amount is due by February 15, 2015.

So on that date I will go to payments and generate a chq for this amount.

I can mail it to CRA or pay it at the bank.

Note: if you are mailing it to CRA generate the chq earlier to give time for mail.

SD Payment Journal

 

 

 

 

 

And you are done.

You can follow the same steps for GST / HST.

Hope this tutorial helped.

If you have specific questions I be glad to help.

Send me a note in the questions area.

 

 

 

 

 

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GST HST Recording of Liability

This tutorial will show you how to record the liability for GST /  HST remittance and how to pay it from Accounts Payable.

You need to first see how much is collected and how much is paid by viewing the General Ledger report.

GST Transaction by Account Report

 

 

 

 

 

 

click ok and view the balances on the report. These are the amounts that have to be recorded in Purchase Journal and paid to CRA.

GST Report in Excel

 

 

 

 

 

Note: I exported the Simply Accounting report into Excel so I can shrink it for better viewing.

Make sure the opening balance is  0 (nil) and always pay the amount in the balance colum.

The balance owing CRA is $6175.99 ($6932.58 – $756.59)

These amounts need to be recorded in the Purchase Journal.

GST Purchase Journal

 

 

 

 

 

 

From the top make sure Transaction = Invoice

Payment Method = Pay Later

Invoice# = Jan-March 2015 GST (that is how I do it to keep track of each quarter posted)

Date = March 31, 2015 (represents the end of the quarter that your submitting the GST for)

Description = Use your own explanation, I just like to put the quarter I am working with.

Make sure the GST on Purchase amount has a – (negative) sign beside it so it will be reduced from GST on Sales.

and Process.

You have now set up the liability for the GST.

on the due date go to Payments journal and generate a chq.

GST Payment Journal

 

 

 

 

 

You have now paid the balance due.

I hope this tutorial helped.

If you have other questions drop me a note.

 

 

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