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Intuit
6 helpful votes

QuickBooks Online Advanced Payroll - Pay & tax settings

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There are so many features in QuickBooks Online Advanced Payroll, we divided them into two sections:

  1. Payroll settings. To modify your payroll settings, see company settings.
  2. Pay & tax settings. To modify your settings for your pay and taxes, navigate to the Employees tab and select the Pay & tax settings tab.

General

  • Tax payments: We take care of all tax payments to the government on your behalf. If you would like to be responsible for making those payments yourself, you can turn off this feature. You can choose your tax remittance frequency here. Quarterly remittances are not supported at this time. If you are unsure, please contact the CRA for more information.

Please note: You will need to create a Journal entry manually to move the payroll liabilities once the payment is made on your behalf. You can see the remittance date in your General Receiver report.

Frequency Due Date
Non-accelerated •15th of the following month.
Accelerated threshold 1 •25th of the month for remuneration that you pay or give from the 1st to the 15th of the month inclusive•10th of the next month for remuneration that you pay or give from the 16th to the last day of the month
Accelerated threshold 2 Due 3rd working day after the end of the following:

•from the 1st to the 7th day of the month, inclusive.•from the 8th to the 14th day of the month, inclusive.•from the 15th to the 21st day of the month, inclusive.•from the 22nd to the last day of the month, inclusive.

 

Note: If you opt in for this feature, the taxes will be withdrawn from the bank account on file when you run payroll, and held in trust & remitted on your behalf according to the remittance frequency you chose during the setup.

  • Direct Deposit: We offer direct deposit functionality to pay your employees and contractors as a part of your subscription. If you would like to pay your staff by cheques, you can turn off this feature. The net amount will be deducted from the bank account on file.
  • Workers' compensation: We can calculate and remit workers' compensation payments on your behalf. If you would like us to calculate Workers' compensation on your own, you can turn off this feature.

Note: Workers' compensation will be paid monthly regardless of remittance frequency, and this option does not include reporting to the workers' compensation agencies, only making the payments.

  • Payroll timesheet format: Choose between decimal & time format for timesheet entries.
  • Company contributions: Show company contributions in the payroll deductions section on employee pay stubs.
  • Show vacation hours: Display employees' vacation balances on their pay stubs.

Income

Below you will see the available income types already set up to choose. If you don't see the income type you're looking for you can request to have a custom one created for you.

Income Type Taxable? Payable? Pensionable? Insurable?
Bonus Y Y Y Y
Commission Y Y Y Y
Holiday Y Y Y Y
Overtime Y Y Y Y
Regular Pay Y Y Y Y
Vacation Pay Y Y Y Y
Car Allowance Y Y Y Y
Contractor N Y N N
Controlled Tips Y Y Y Y
Direct Tips Y N Y Y
Double Overtime Y Y Y Y
Expense Allowance N Y N N
Expense Reimbursement N Y N N
Miscellaneous Pay Y Y Y Y
Other Pay Y Y Y Y
Retro Pay Y Y Y Y
RRSP Earned N Y Y Y
Severance Pay Y Y N N
Sick Pay Y Y Y Y
Time Worked on Holiday Y Y Y Y

To add an Income type:

  1. From the Income tab, select Add income type.
  2. Choose an Income type: You can scroll through the drop-down list of existing income types, and choose which apply to your business' payroll needs. After selecting the Income, you will see if that type of income is taxable, payable, pensionable or insurable.
  3. You can choose how this shows up on employee's pay stubs by naming it in the Income name filed.
  4. Save.

If you do not see the desired income type, you can select request a custom income type:

  1. From the Income tab, select Request custom income.
  2. Add the name of your custom income, and choose which taxes it would be subject to, as well as how it would show up on a T4/RL-1 form.
  3. Save.

Deductions

Below you will see the available deduction types already set up to choose. If you don't see the deduction you're looking for you can request to have a custom one created for you.

Deduction Type Taxable? Pensionable? Insurable?
Medical/Health Y Y Y
Critical Illness Y Y Y
Dental Y Y Y
Vision Y Y Y
Short-term Disability Y Y Y
Long-term Disability Y Y Y
Life Insurance Y Y N
Supplemental Life Insurance Y N N
Dependent Life Insurance Y Y Y
AD & D Y Y Y
RRSP N Y Y
Profit Sharing N Y Y
Pension N Y Y
Taxable Benefit Y Y Y
Taxable Benefit (Non-ins) Y Y N
Union Fringe Deduction N Y Y
Union Special Y Y Y
Union Dues N Y Y
Voluntary Deduction Y Y Y
Other Deduction Y Y Y
General Deduction Y Y Y
Charitable Deduction Y Y Y

To add a Deduction type:

  1. From the Deductions tab, select Add deduction.
  2. Choose a Deduction type. You can scroll through the drop-down list of existing deductions, and choose which apply to your business' payroll needs. After selecting the deduction, you will see if that type of deduction is taxable, payable, pensionable or insurable.
  3. You can choose how this shows up on employee's pay stubs by naming it in the Deduction name field.
  4. Save.

If you do not see the desired deduction, you can select request a custom deduction:

  1. From the Income tab, select Request custom deduction.
  2. Add the name of your custom deduction, and choose which taxes it would be subject to, as well as how it would show up on a T4/RL-1 form in the provided comment box.
  3. Send.

Pay Schedule

  1. From the Pay schedule tab, select Add pay group.
  2. Choose the desired payroll frequency. (Bi-weekly, Monthly, Quarterly, Semi-monthly, Weekly)
  3. Enter the Pay group name in the provided field.
  4. Save.

Workers' compensation

 It covers lost wages, healthcare and rehabilitation services for workers who are injured on the job, and protects you from lawsuits from injured workers. If you hire employees or contractors, you probably have to pay into workers' compensation. Here you can add your rates so we can calculate and remit your dues. You will still need to report insurable earnings to the workers' compensation board. If you are unsure what your WCB rate is, please check out the Canadian Centre for Occupational Health and Safety for more info.

Note: QuickBooks Online Advanced Payroll can only handle the WSIB/WCB remittances on your behalf. We are not authorized to complete your WSIB/WCB reporting. However, to help you complete your reporting accurately, we provide a handy WSIB Payroll Report, which can be found in your Reports tab.

  1. From the Workers' compensation tab, select Add rate.
  2. Select the Province from the dropdown list
  3. Enter your Account Number.
  4. Enter the Rate used for calculations.
  5. Enter the Maximum wage allowed.
  6. Save.

Using standard QuickBooks Online Payroll? Click here.

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