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Level 1

I'm setting up Canadian payroll in QBO. How do I set up employer paid benefits, subject to CPP and income tax, not EI, and to show in T4 box 40?

 
4 Comments
QuickBooks Team

Re: I'm setting up Canadian payroll in QBO. How do I set up employer paid benefits, subject to CP...

Hi there, @cassia.

 

Currently, setting up employer-paid benefits depends on the contributions you select. QuickBooks will automatically determine which contributions will be subject to CPP or EI. Let me guide on you to set up contributions.

 

  1. Click the Gear icon, then select Payroll Settings.
  2. Choose Pay Schedules.
  3. Select Deductions/Contributions.
  4. Click Add a New Deduction/Contribution.
  5. Select either Health Insurance or Retirement Plans from the Category drop-down.
  6. Choose the type of contributions.
  7. Click OK once everything is filled out correctly.

Once done, you'll notice boxes below that shows deduction tax and contribution tax settings. If you'll see a green dot on the Pensionable and Insurable sections, it means that the contribution is subject to CPP. It also determines which box it'll appear on the T4 slip. Please see screenshot below for your visual reference.

I've got you an article you can read on for more details: How to Turn on and Set up Payroll.

 

You might also want to check out this article to know how to calculate the Canada pension plan.

 

Please feel free to post any other questions you have below. The Community and I are always here to help you out.

Level 1

Re: I'm setting up Canadian payroll in QBO. How do I set up employer paid benefits, subject to CP...

Hi Mark,

 

I'm still trying to set up payroll employer paid contributions.  If I go through the gear icon and payroll settings to deductions/contributions, there is now an option for taxable benefits (non-cash), which is what I need.  However, when I set it up and try to assign it to an employee I get this error message "Error code: 1569-0271-42880-fci_p"  I'm not able to get to a point where I can see what taxes are applied, and it gives me the same error on multiple employees.

 

What do I need to do to fix this? 

 

Thank you,

 

Cassia  

Moderator

Re: I'm setting up Canadian payroll in QBO. How do I set up employer paid benefits, subject to CP...

I appreciate the steps you've taken to elaborate your concern, @cassia.

 

Let's perform some browser troubleshooting steps to narrow down the cause of the error message you received and get you back to business in no time.

 

But first, some browsing history from a frequently-accessed page can cause other websites, like QuickBooks Online (QBO), to act weirdly. Thus, let's try logging into your QBO account using a private browser. To do so:

  • Google Chrome: Ctrl + Shift + N
  • Internet Explorer: Ctrl + Shift + P
  • Mozilla Firefox: Ctrl + Shift + P
  • Safari: Command + Option + P

After logging in, you can go back and set up the payroll contributions of your employees again. If it works without any errors, you can clear your browser's cache so the system can start fresh.

 

However, if you still receive the error message, let's use a new browser application to access your QBO account. From there, go back and set up your employees contributions.

 

In case you need some tips and related articles in the future, visit our QuickBooks Community Help page for reference: QBO Self-help.

 

If there's anything else that I can help you with, please let me know in the comment section down below. I'll be always around ready to help.

Level 1

Re: I'm setting up Canadian payroll in QBO. How do I set up employer paid benefits, subject to CP...

I tried incognito, I cleared cache, cleared advance data (most - not passwords), tried Edge (I use Chrome) but in Edge the left hand menu doesn't show up (and I can't get it to).  I went into chrome settings to make sure pop ups weren't blocked for QBO, I checked compatibility.

 

No luck.  I'll have to call support on Monday.  It's quite frustrating.