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Hi, I have a couple employees who submitted CRA forms T1213 to reduce their source deductions (RRSP/Donations). How to I setup the adjustment in QUickbooks payroll?

The employees specified they have RRSP contributions (outside group plan), donations and other expenses. What type of payroll item is this in QB and what tax tracking numbers do i use?

4 Comments
QuickBooks Team

Re: Hi, I have a couple employees who submitted CRA forms T1213 to reduce their source deductions...

Hi brandt-krause,

 

Knowing how to configure payroll for these instances is important, as is knowing what accounts and tracking numbers to use. To find out the correct accounts and tracking numbers, I recommend getting in touch with an accountant or the CRA. They'll also be able to let you know if there's any special that needs to be done to calculate this kind of thing in payroll.

 

Accounting for any additional tax deductions can be done through the employee's profile in the Employee Centre. It's just a few easy steps.

  1. Click Employees from the upper toolbar.
  2. Choose Employee Centre.
  3. Double click the employee name.
  4. Choose Payroll Info.
  5. Click the Taxes and TD1 button.
  6. Change the appropriate fields.
  7. Click OK to save to Taxes and TD1 form information.
  8. Click OK again to save the employee profile.

To learn more about payroll in QuickBooks Desktop, hit F1 on your keyboard as a shortcut to bring up the QuickBooks Desktop Help screen. On that screen, click the Help tab, then the Search button to activate the search bar. Type in keywords such as "payroll" to bring up related articles.

 

Stop by again if you need anything else. Smiley Happy

 

[Edited]

Active Member

Re: Hi, I have a couple employees who submitted CRA forms T1213 to reduce their source deductions...

Thanks Laura - I've set up deductions before and no issues there, but in this case, it's not actually a deduction - it's a reduction in the income on which tax is charged. The T1213 effectively allows the employee to reduce their earnings subject to tax - it's not an actual adjustment to any specific deductions.

 

Did I miss this in your response somehow?

QuickBooks Team

Re: Hi, I have a couple employees who submitted CRA forms T1213 to reduce their source deductions...

Hello again. My mistake, I misread your question. I've made some edits to my original response which you can take a look at. If you're not seeing it, give the page a refresh. Let me know if you have more questions.

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Re: Hi, I have a couple employees who submitted CRA forms T1213 to reduce their source deductions (RRSP/Donations). How to I setup the adjustment in QUickbooks payroll?

While I am not 100% positive, I believe you would add the NET amount reported on line 14 of the T1213 to the amounts on the TD1 Forms the employees submitted. That woyld increase the Tax Credits and reduce the tax paid. Please check with your own professional accountant.