Level 2

Payroll Taxes not deducting properly Canada

Hello all, my accountant has let me know QBO did not calculate payroll taxes properly in 2019. It took too much CPP and EI in employer amount. Anyone know how to fix this? I entered the proior tax payments into Payroll Taxes section so it is showing balanced in the tax liability report (for the amount paid) even though I am currently not able to pay the CRA for the difference. Our amendment is under review.  However the "Tax amount" on this is wrong and is calculating totally incorrectly. 

 

For example, its calculating EI Employer portion to be 1.455x EI Employee and CPP Employer portion to be 1.00415x CPP Employee which so happens to be $201.82 I cannot clear from the system. I am concerned about 2020 as well.  It appears that this loosely occurred when our employees hit their max for EI and CPP. This is not a hard and fast rule but its right around the $50,000 mark. 

Level 7

Employees & Payroll

Hey korrim21,

 

The payroll modules offered in QuickBooks Online are designed to make your life easier, so I want to make sure everything is calculating correctly. I really want to take a closer look at your account to get to the root cause of this, and prevent errors going forward. Please choose from the methods below to contact our payroll expert team. They'll be able to get to the bottom of this, and assist you in requesting the edits. 

 

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Don't be afraid to reach out. I want to make sure this gets sorted out.

Level 1

Employees & Payroll

Well I have a similar issue but not with the same deductions.  For the Health contribution in Quebec for 6 motnhs the rate was correctly used and out of nowhere for the rest of the year, the rate was incorrect leaving a important amount payable at year end.  When I called QB, they said it's not their problem !!!  What??? I am not the one putting the rate, it's already set up in QB and based on the answer you provide, they will select the rate, not me!  And just today, I found out that the taxable benefits that I have been adding to make sure the right amount of income taxes were deducted, were not considered correctly!!!!.  It would be ok if the employees were getting refunds, but you can understand that the issue is that they are paying a lot!!!  So, what gives????  Do I have to start looking for another software?

Level 7

Employees & Payroll

Hey ndrouin,

 

Thank you for reaching out. Our payroll systems are designed to save you time and simplify the task of paying your employees. Rates are taken directly from federal and provincial tax agencies to ensure consistent calculations and accurate tax forms. If the default rate for QHSF (FSSQ) given is not appropriate for your company, one of our payroll specialists would be happy to request the change for you. Choose from the following options to connect with an agent. 

 

Phone and Chat: Click Contact Us to learn how to reach phone and chat support.

Schedule a Callback: click (?)Help in the upper right > click Contact Us > explain your situation > click Let's Talk > choose Get a callback (Note: Callback hours are the same as regular phone hours.)

Social MediaFacebookTwitter, and Instagram from Monday to Friday between 9 a.m. and 8 p.m. ET 

 

I'm here for you. Reach out any time, and I'll be happy to help.

Level 2

Employees & Payroll

So although I can't answer many of your questions I will tell you I went on live chat with them and they sent me an excel file called QBOP payroll template. I filled it in and they made the changes on their end. 

 

As for this year, when and if this happens again.. I am not sure at all what I should do to fix it. I was lucky that it only affected our employer remittance (although my accountant told me we did overtax our employees and they will get it back). I am not sure what the right answer is but I will be entering paycheques in on service Canada's calculator before submitting payroll once we get close to that $50k this year.. if that happens with all that is happening in the world. Good luck! Definitely talk to them again and tell them it is their problem and you need them adjusted.