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Pinto13
Level 1

Source deductions

HI,

I paid my source deductions to the CRA with the company debit card for the first time. (we are a new company)  

For the payee do i need to make up a name like "CRA source deductions"? or what?

Then do i break it down to for each deduction i made? Sept 1 and Sep 15?

 

Thanks for the help :)

Solved
Best answer October 15, 2020

Best Answers
LeithG
Level 7

Source deductions

Hi Pinto13

 

You'll definitely want to setup a 'supplier' for your payments to the CRA; when I did work with my accountant earlier this year, they setup a supplier for the 'Receiver General', but the name doesn't really matter as long as you know what it is.

 

With respect to the payments, you'd simply record them as paid.  You can do this by categorizing the payment when it comes in on your bank feed if you've got the automatic transaction feed setup in your QBO system, or by entering a journal entry crediting your bank, and debiting your tax liability created during your payroll entries.

 

Hope this helps!

View solution in original post

Rebecca R
QuickBooks Team

Source deductions

Hello Pinto13,

 

Recording your remittances to the CRA is an important part of keeping your books balanced. There are a few ways we can record these expenses in QuickBooks Online, depending on whether or not you're using one of our Payroll offerings. Either way, QuickBooks makes this a straightforward process and I'm happy to explain how you can do it!

 

If you've made the excellent choice to use QuickBooks Online Payroll (formerly Standard Payroll) to pay your employees, you can record those source deductions through the Payroll Tax Centre. To Make payroll tax payments, please follow the steps below:

 

  1. Select Taxes from the left menu, then Payroll Tax.
  2. Choose Pay Taxes. You'll see a table with your current unpaid taxes.
  3. Select Record Payment for the tax you want to pay. 
  4. Indicate a payment date and add a Note to indicate payment method if you wish.
  5. Once complete, select Record payment from the dropdown at the bottom.

 

When using QuickBooks Online Advanced Payroll, the program is set up to automatically remit source deductions to the CRA. This feature makes your life a little easier because it means one less step for you to think about. If you don't have the payroll tax auto-remittance feature turned on however, follow the directions below to record your source deductions as a Cheque or Expense. It's important to note that if you've been using Advanced Payroll, your payroll will be managed end-to-end directly by Wagepoint starting on November 27.

 

If you're not running Payroll with QuickBooks yet, or if you've turned off the auto-remittance feature in Advanced Payroll, you can record your source deductions as an Expense or Cheque. I suggest creating the CRA as a Supplier from the Expenses tab, as you mentioned. Create a new Expense or Cheque from the + New button and enter the CRA as the Payee. You can add an account to your Chart of Accounts to represent your Payroll Expenses, and use that account as the Category when creating the Expense. If breaking the source deductions down would be helpful for you or your accountant at a later date, then you're welcome to do that, but it's personal preference. Consult with your accountant on this if you're not certain what would be best for your business.

 

The Find a pro to help button from the My Accountant tab will give you access to a database of QuickBooks Certified accountants that are ready and willing to help you if you're not yet working with one.

 

Maybe you've been considering making the switch to QuickBooks Online Payroll to pay your employees and keep track of your payroll taxes. Here's a great article with a video that'll help get you set up: Payroll set up: Turn on payroll

 

Don't hesitate to reach out if there's anything else I can do to support you. Happy remitting! 

 

 

View solution in original post

4 Comments 4
LeithG
Level 7

Source deductions

Hi Pinto13

 

You'll definitely want to setup a 'supplier' for your payments to the CRA; when I did work with my accountant earlier this year, they setup a supplier for the 'Receiver General', but the name doesn't really matter as long as you know what it is.

 

With respect to the payments, you'd simply record them as paid.  You can do this by categorizing the payment when it comes in on your bank feed if you've got the automatic transaction feed setup in your QBO system, or by entering a journal entry crediting your bank, and debiting your tax liability created during your payroll entries.

 

Hope this helps!

Rebecca R
QuickBooks Team

Source deductions

Hello Pinto13,

 

Recording your remittances to the CRA is an important part of keeping your books balanced. There are a few ways we can record these expenses in QuickBooks Online, depending on whether or not you're using one of our Payroll offerings. Either way, QuickBooks makes this a straightforward process and I'm happy to explain how you can do it!

 

If you've made the excellent choice to use QuickBooks Online Payroll (formerly Standard Payroll) to pay your employees, you can record those source deductions through the Payroll Tax Centre. To Make payroll tax payments, please follow the steps below:

 

  1. Select Taxes from the left menu, then Payroll Tax.
  2. Choose Pay Taxes. You'll see a table with your current unpaid taxes.
  3. Select Record Payment for the tax you want to pay. 
  4. Indicate a payment date and add a Note to indicate payment method if you wish.
  5. Once complete, select Record payment from the dropdown at the bottom.

 

When using QuickBooks Online Advanced Payroll, the program is set up to automatically remit source deductions to the CRA. This feature makes your life a little easier because it means one less step for you to think about. If you don't have the payroll tax auto-remittance feature turned on however, follow the directions below to record your source deductions as a Cheque or Expense. It's important to note that if you've been using Advanced Payroll, your payroll will be managed end-to-end directly by Wagepoint starting on November 27.

 

If you're not running Payroll with QuickBooks yet, or if you've turned off the auto-remittance feature in Advanced Payroll, you can record your source deductions as an Expense or Cheque. I suggest creating the CRA as a Supplier from the Expenses tab, as you mentioned. Create a new Expense or Cheque from the + New button and enter the CRA as the Payee. You can add an account to your Chart of Accounts to represent your Payroll Expenses, and use that account as the Category when creating the Expense. If breaking the source deductions down would be helpful for you or your accountant at a later date, then you're welcome to do that, but it's personal preference. Consult with your accountant on this if you're not certain what would be best for your business.

 

The Find a pro to help button from the My Accountant tab will give you access to a database of QuickBooks Certified accountants that are ready and willing to help you if you're not yet working with one.

 

Maybe you've been considering making the switch to QuickBooks Online Payroll to pay your employees and keep track of your payroll taxes. Here's a great article with a video that'll help get you set up: Payroll set up: Turn on payroll

 

Don't hesitate to reach out if there's anything else I can do to support you. Happy remitting! 

 

 

Maid In Bliss
Level 1

Source deductions

I remitted my payroll taxes through quickbooks to receiver general on April 14th. Quickbooks says it is paid but it has yet to come out of my bank account. Does it normally take awhile for the money to leave the account and for cra to recieve the money?

LauraAB
QuickBooks Team

Source deductions

Hi there Maid In Bliss,

 

I'm glad you've reached out about working with payroll taxes in QuickBooks Online. I want to make sure you have the information you need for working with the program and making sure the CRA receives your payroll tax remittances on time. I'd be happy to shed light on this for you.

 

It's great to hear that you've already recorded the payroll tax remittance in QuickBooks Online. That's definitely a part of the process and will ensure that your books are up to date and balanced. It's important to note, however, that QuickBooks Online Payroll doesn't submit the tax remittances or make the payments on your behalf. When working with payroll taxes and QuickBooks Online Payroll, the module is for recording purposes only, even if you have direct deposit set up for your employees. This is why even though you've logged the payroll tax information in QuickBooks you're not seeing the money leave your bank account.

 

In this case, submitting your remittance and payment to the CRA outside of the QuickBooks Online program is the step to take to make sure that they receive it. You can use the information generated by QuickBooks Online Payroll to fill out what you need to submit to the government, but the program doesn't handle any part of the submission or payment process for taxes.

 

To learn more about QuickBooks Online Payroll, I recommend checking out this page: QuickBooks Online Payroll help article hub

 

If you happen to be using Wagepoint for your payroll needs and it's synced with QuickBooks Online, please reach out to Wagepoint support for further assistance.

 

Don't hesitate if you have further questions about this. I'm here to help however I can.

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