I really need to know the accounts that these deductions affect.
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.
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.
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.
Is there a way to set up so that the RRSP contributions both the employee and employer side contributions to be withdrawn by Quickbooks from the employee's pay and company's bank account and deposited to the RRSP account?