PAYROLL WEBINAR 2015

Transcription

1 PAYROLL WEBINAR 2015

2 PAYROLL WEBINAR 2015: TD1 Forms At the beginning of every year (and for each new employee) each person is to complete a TD1 Form. Please have employee complete one each for FEDERAL & PROVINCIAL. The forms can be located on the CRA website at: under Forms Listed by Number. TD1 Personal Tax Credits Return TD1(Province) Provincial Tax Credits Return IMPORTANT: Completing these forms will ensure that the proper amount of taxes will be deducted throughout the tax year. FRONT PAGE: Total Claim Amount - the amounts from these forms are to be used in calculating payroll taxes. For the Confluent Accounting System these amounts are to be entered in each of the Employee Records.

3 BACK PAGE: A. More than one employer check this box if the person has more than one employer. Only one place of employment will be able to apply the Basic Personal Amount (from page one) to the payroll for tax purposes. B. Total Income less than total claim amount if the total income from all employers is less than the claim amount, no tax is to be deducted from earning. C. Additional Tax the employee may request to have additional taxes taken from the monthly payroll. Include this amount when calculating tax on income. A B C

4 PAYROLL WEBINAR 2015: Payroll Reconciliation PD7A Payroll Remittance Deductions from payroll are due and payable by the 15 th of the following month in which they were taken. For churches paying deductions by cheque a PD7A form should be accompanied with every remittance cheque and requires the following information: Account Hints: Some helpful hints when making monthly payroll payments to CRA: Quote BN# on payment cheque and mark with highliter Highlite BN# on payment form stub

5 Statement of Account for Current Source Deductions Foursquare Churches across Canada are operating under the same root number ( ). Each church is separately identified with a unique division number. It is very important for each of the churches to maintain a reconciled account. The GST division of CRA passed legislation that enables them to retain GST Rebates and apply them to the outstanding payroll payments of an organization. This means that the GST Rebate from one church can be taken and applied to the outstanding payroll account of another church. Below is a copy of the top portion of the CRA Statement of Account for payroll deductions. When you receive the statement each month, please check the following amounts to be sure that proper payments have been applied to the church payroll account: Please notify the national office as quickly as possible of any discrepancies on your statement. By providing this information to us we can assist you and other churches in matching and notifying the CRA of any necessary adjustments. B A Section A: Payments are shown as a cr The credit amount should match the payment cheque sent to CRA. Missing payments and/or unidentified payments should be reported to CRA and to the national office as soon as possible. Adjustments for unidentified payments will be shown as a dr. Section B: This amount is the year-to-date balance of payments received on the account. The CRA uses this amount to reconcile the T4 Summary reports. If there are missing or unidentified payments on the account, the T4 Summary will not be in balance and a Difference Letter will be sent from CRA. Please make sure that all differences have been reconciled before making payments or taking adjustments to CRA.

6 STEPS BEFORE SUBMITTING T4 SLIPS: Recommended that these steps be taken before preparing the December 31 payroll and submitting payroll taxes for December. 1. Perform a reconciliation of all payroll amounts for the year. A spreadsheet can be created that provides the total amounts to be reported in the boxes on the T4 s and for the T4 Summary. 2. Compare the totals from the spreadsheet to the amount reported on the PD7A. 3. If there have been overpayments/underpayments for the year for taxes, adjust the last payment for the year on the PD7A remittance form. 4. If there are discrepancies that are not for the church (payments applied from another church) provide an explanation with the T4 Summary report. T4 & T4 Summary forms (fillable) can be found on the CRA website.

7 STEP 1: For each employee Paper Filing of T4 s & T4 Summary Select Employees/Payroll Module 2. Select Employees 3. For each Employee Record: Click on T4 & RL-1 Reporting Tab Under Current Year column, ensure accuracy of each category: EI Insurable Earnings: enter an amount only if the amount in Box 14 is more than the maximum limit below. Otherwise enter zero. Maximum reported in this box for 2015 is $49,500 Pensionable Earnings: This amount should equal total of employment income reported in Box 14 on the T4 minus the amount used for the Clergy Residence Deduction (on the T1223 application). Maximum reported in this box for 2015 is $53,600 RPP/DPSP Reg. No.: Pension Adjustment: Employee + Employer contributions to Pension Plan Save & Close Repeat for each employee STEP 2: 1. Select Setup Reports & Forms Government Forms Federal Payroll 2. T4 Slips Printer Settings: Select Form Type: Plain-paper laser & inkjet No pre-printed forms necessary. This will print the form and the numbers from the program 3. T4 Summary Printer Settings: Select Form Type: Plain-paper laser & inkjet (same as above)

8 STEP 3: Print T4/RL-1 and T4 Summary: 1. Select Reports Payroll Print T4 slips and Summary or Print Relevé 1 slips 2. Select the payroll year for which you are filing. 3. Select the employees for whom you want to file T4 slips. To select an employee whose status is inactive, select the Include Inactive Employees check box. 4. To print T4 slips to mail in to CRA, check the following boxes: Print CRA Copy Print Employee and Company Copies Print CRA T4 Summary If you will be filing the T4 slips electronically do not check the boxes for the CRA Copy or the T4 Summary. 5. Fill in the boxes on the T4 Summary Business Information and T4 Summary Contact Information tabs, or verify the information displayed on these tabs. 6. Click OK. 7. In the Income section of the T4 Box Options dialog, choose the box number to print each income amount in, or leave the boxes blank (click the arrow button to the right of a box to display a list of the numbers from which you can choose). Benefits & Allowances = Box 40 Note: Do not use Box 30 for the Housing Allowance. The adjustment for the Clergy Residence Deduction was made in Step In the Deductions section, choose the box number to print each deduction amount in, or leave the boxes blank (click the arrow button to the right of a box to display a list of the numbers from which you can choose). Pension = Box Click OK. 10. T4 Summary window will appear. Enter the totally payments made in the payments line. Print.

9 T4 SUMMARY The amounts on the T4 Summary report are based on the actual T4 slips, not on the amounts remitted during the year.

10 PAYROLL WEBINAR 2015: Pier Reports After filing T4 slips, many charities get a PIER report (Pensionable & Insurable Earnings Review) asking for more CPP and/or EI premiums. Before you pay, check whether Box 26 (Pensionable earnings) and Box 24 (insurable earnings) on the T4 have been entered correctly. ** For employees eligible to claim the clergy residence deduction, Box 26 should be less than Box 14 by the amount of the housing allowance claim. If Box 26 was incorrect on the T4, amend the reported amount on the PIER report to reflect the actual amount payable (it should be 0.00). In the Explanation of Changes section of the form enter the comment Box 26 on the employee T4 was not adjusted to include amounts claimed for Clergy Residence Deduction. The CRA will create an amended T4 and issue a copy to the church for their files. They will also make the necessary changes to the employee personal tax return. No further reporting will be required to the employee.