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Archive for the day “March 21, 2012”

Entering a CRA Hiring Credit for Small Business

Did you get a notice from the CRA that you’ve received a Hiring Credit? If you haven’t already figured this out, here’s an easy way to do it if you’re using QuickBooks Payroll. The credit can be recognized as either Income or a reduction in your EI Expense account. I’m going to explain how to recognize it as an Expense.

Create your current Payroll Liability cheque as usual by selecting the Pay Payroll Liabilities window and choosing your date range. Fill out as you normally would, selecting “review liability cheque to enter expenses/penalties.” Click create. But don’t close the cheque just yet!

In the detail section of the cheque, choose the EXPENSE tab. In the account drop down menu, choose the account you use to track your Company EI expense – this would be “Payroll Expenses” if you accepted the QB default accounts when you set up payroll. Enter the amount of the credit as a NEGATIVE number. Enter a memo to note the reason for the credit. Then click “recalculate,” select save and close, and you’re done!

As is typical with QuickBooks, there’s more than one way to accomplish a task. I prefer this method to “adjusting payroll liabilities.”

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