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How to set up an RRSP deduction for employees which will be a percentage of weekly pay and matching contribution by the employer. I need to know how to do this in detail.

I really need to know the accounts that these deductions affect.

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Active Member

Hello ally! I'm happy to explain how to set up an RRSP. I...

Hello ally!

I'm happy to explain how to set up an RRSP. I'll include the steps below, but don't hesitate to ask any follow-up questions. 

  1. Click on the Employees tab. 
  2. Select the employee.
  3. Depending on your payroll setup, you'll either click on the pencil icon next to Pay, or you''ll need to click on the pencil icon next to #5 Does [employee name] have any deductions?
  4. Select Retirement Plans from the first drop-box menu. 
  5. Select Registered Retirement Savings Plan
  6. Fill out the questionnaire, and be sure to include the Employee deduction and the Company-paid contribution.
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Thank you Intuit Liz but I was able to do this part but w...

Thank you Intuit Liz but I was able to do this part but what I need to know is what liability/expense accounts this transaction affects.
Active Member

In order to see which accounts are affected, follow these...

In order to see which accounts are affected, follow these steps:

1. Click on the gear icon.
2. Select Payroll Settings.
3. Click on Accounting
4. Scroll down to see the accounts associated with each deduction.

Let me know if you need any help finding that.
Established Community Backer ***

Re: Thank you Intuit Liz but I was able to do this part but w...

Hi @ally1 ,

 

1.  Set up an RRSP EE (Employee) Contribution payroll item as a Deduction.  Liability account should be 'RRSP Payable', or whatever you want to call it.  Tax Tracking is none.  Choose to decrease Federal Income Tax on this item.  Do not decrease any other tax items.  Choose to not calculate this item based on quantity or hours.  If there is a single rate for all employees, enter it as the Default rate and enter upper limit.  However, if amounts are different for all employees, the employee's individual payroll record will override these.

 

2.  Set up RRSP ER (Employee) Match payroll item as a Company Contribution.  Enter the name of the investment company payments are being made to.  Choose the same RRSP Payable liability account you did for the EE item above.  Choose expense account you will be tracking RRSP expenses to.  Under ROE Tracking, check as Insurable Earnings, in which they are paid NOT for which they are paid.  Choose Tax tracking type as Box 40 - Other taxable benefits.  Choose CPP and EI taxes, but NOT Federal Income Tax.  (Employer match portion of RRSP, even though a taxable benefit, can be tax free when there is knowledge that the employee has enough RRSP room and will be deducting both portions (EE & ER) RRSP from their earnings on their tax return).  Choose NOT to calculate this item as based on quantity or hours.  If there is a single rate for all employees, enter it as the Default rate and enter upper limit.  However, if amounts are different for all employees, the employee's individual payroll record will override these.

Established Member

RRSP set up questions

Based on the answer below, where/how do you set up the RRSP to get the tax tracking and Federal Income Tax options in Quickbooks Online?

Established Community Backer ***

Re: RRSP set up questions

Hello @Busy_Bee ,

 

When you're in your employee profile, In the 'Pay' section, click on the edit pencil.

Under #5, it should say Does *employee name* have any deductions or contributions? (ex. retirement, health care)

Click on 'Add new deduction'.

At the 'Deduction/contribution type' dropdown list, choose 'Retirement Plans'.  Under Type, choose 'Registered Retirement Savings Plan'.

Enter the employee deduction amount as either $ or %.  Under Company-paid contribution, select either $ or % under the 'Amount per pay period' drop down.

Choose Annual Maximums if applicable.

The tax settings are set up correctly for this type of item so are not editable.

This should complete your setting up of the RRSP.

You should be able to do this generally, so that the same item appears for all employees, by clicking the gear icon-->Payroll Settings-->Deductions-->Add New Deduction/Contribution-->Retirement Plans-->then follow same instructions as above.  When you go into each individual employee, you edit that item to the employee's deduction/contribution details.

 

Good luck!