Re: Payroll Remittance - adjusting- Received a notice from CRA that we should reduce our next payroll remittance ( EI Company Portion) by $1,000 as there is a credit sitting in our account at CRA. Could someone please tell me how I would do this?
The first thing I would do is to find out how and why you managed to over pay the company portion of the EI.
Then armed that information, make your books reflect the over payment, this will make it easier to understand how to record the reduction.
We did not over pay our EI. The CRA have issued us a credit from a calculation/adjustment called a "Hiring Credit for Small Business" and specifically refers to the EI company portion . CRA asks that we reduce our next remittance to use up this credit that is sitting there. Their notice also states, that when determining our taxable income we must either reduce the EI premium expense by the credit amount "or" include the amount as income. So I'm thinking when processing the next remittance, I would credit the Bank $1000 less than would normally be paid and Credit the EI Expense Account $1000.
I am insterested in how to handle this, as I also received a Hiring Credit for Small Business and was informed to do the same thing.
I am also searching for an answer to this question. But I also have a .04 cents that went to 2011 and the rest transfered to 2012. Therefore I have to adjust two years.
I too had received a credit from CRA for overpayment of CPP (Company portion) and was told to adjust it in next remittance. So I made a payroll liability adjustment and reduced the CPP portion(employer) in my next remittance. Now when I am processing t4 summary at the end of the year, the CPP portion of the employer is less than the employee portion by that amount. I wonder if I did the right thing. Any suggestions?
