Learn how to change incorrect payroll items used on pay cheques.
If you set up a payroll item incorrectly and used this payroll item on one or more pay cheques, it could cause incorrect tax totals to be withheld.
Additionally, year-end tax forms such as T4 could be incorrect and need to be fixed.
We'll show you how to correct it.
- Edit the payroll item.
- Select Lists on the top menu bar. Then select Payroll Item List.
- Right-click the item and select Edit.
- Select Next twice. Enter the correct tax tracking type. Then select Next.
- Select the correct taxes. Then select Next.
- Select Calculate Based on Quantity. Then select Next.
- Enter the limit type, if all the employees have the same rate and limit.
- If the employees do not have a default rate and limit but do have the same rates and limits, enter the amounts.
- Select Finish.
- If the Employees do not have the same rates, enter the rates on the employee records.
- Select Employees menu > Employee Centre.
- Double-click the employee's name.
- Select the Payroll Info tab.
- In the Addition, Deduction and other Company Contributions enter the correct rate and limit.
- Select OK to close out when finished.
- Verify the Wage Base.
- Select Reports on the top menu bar. Then select Employees and Payroll.
- Select the Payroll Summary Report.
- Change the date to this calendar year.
- Zoom in on the payroll item for each employee. And verify the amount and wage base are correct.
- If the amount and/or wage base is incorrect, make a payroll liability adjustment.
- From the Employee menu, select Payroll Taxes and Liabilities.
- Select Adjust Payroll Liabilities.
- Enter the Date and Effective Date.
- In the Adjustment is for area, select the Employee and then select the employee's name.
- Under Taxes and Liabilities, select each of the payroll items. And enter a negative number to reduce the amount and/or Wage Base. Or enter a positive number to increase the amount and/or Wage Base.
|Note If the payroll item is an employee deduction, the amount deducted was too large. And if you do a payroll liability adjustment, you must refund the amount to the employee. We recommend writing a cheque for the amount owed the employee.|