CRA Hiring Credit
How do I apply the CRA Hiring Credit for Small Business in Quickbooks? Or do I need to at all?
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crzB9erG4r4yUOacwZ5xHE
01/23/12 2:08pm PST
Viewed by asker 02/22/12 2:42pm PST
Viewed by asker 02/22/12 2:42pm PST
5 Replies
01/30/12 10:12am PST
It seems that you have to decrease the next period's payroll remittance by the amount of the credit that CRA applied toyour payroll account. ($1000 I assume)
I am also interested in finding out about how to make a proper adjusting entry for payroll liabilities and to apply it against which payroll liability items.
If your remittance for the next period is less than $1000 then I would assume you apply it against the whole amount of your next remittance and carry the remainder over towards the next.
Any ideas?
02/03/12 9:39am PST
Yes, that's what I ended up doing by applying the credit when I processed the payroll liability through QuickBooks Payroll. I followed these steps as per QuickBooks help instructions. QuickBooks reduced the payroll liability payment by the credit amount. However, I don't think I'm done yet. This left a credit balance in my Payroll Liabilities account. According to the CRA credit notification form I was sent, I have to either apply this credit to reduces payroll expenses or report it as income for the current tax year. Either should be a routine accountimng entry.
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Go to the Employees menu, choose Payroll Liabilities, and then click Pay Payroll Liabilities.
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Specify a date range for your payroll liabilities and click OK.
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Mark the liabilities to pay.
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At the top of the window, click Review liability cheque to enter expenses/penalties, and click Create.
If the liability cheque is not the one you want to add the credit to, click Next or Previous at the top of the window until the window displays the appropriate cheque.
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Click the Expenses tab.
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In the Account field, choose the income (or contra-expense) account you use to track payroll witholding amount credits.
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Enter the amount of the credit as a negative number, and click the Recalculate button to recompute the amount of the cheque. Make sure that the total cheque amount decreased.
02/19/12 4:59am PST
Can this procedure be followed even if the cheque is already cleared in reconciliation?
02/22/12 2:41pm PST
Latest post
I am not sure. I just followed the instructions on the Quickbook Help screen. Sorry.
02/14/12 9:01am PST
The solution
I entered the credit as a credit memo in bills, then entered the full amount due for remittance.
When I went to pay bills I included the credit so that the full amount would be deducted.
Hope this will work too!
