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Archive for the tag “Payroll”

What do to if your TD1 amounts are not updating in QuickBooks

Happy New Year! We’re a few days into 2015, and I’ve come across several client files where the current Federal and Provincial TD1 amounts are NOT updating. This is a known issue in QuickBooks desktop and hopefully there will be a fix soon.

First things thing. Please make sure you have the latest tax table installed in your software by going to Employees < My Payroll Service > Tax Tables Updates. Here’s a link explaining this in greater detail:

http://support.intuit.ca/quickbooks/en-ca/iq/Update-QuickBooks/Update-tax-tables-for-QuickBooks-Payroll/HOW15192.html

Now that you’ve confirmed you have the latest tax table, it’s important that you check your TD1 Review List to make your employees have been updated with the current Federal and Provincial amounts.  I run this report before running payroll at the start of every new calendar year. Here’s how to check:

Reports > Employees & Payroll > TD1 Review List

You will see a list of your employees. The columns contain the Payroll Province and Federal and Provincial ‘Current’ and ‘Suggested’ TD1. If the ‘Current’ doesn’t match the ‘Suggested,’double click on the amount. You will now be in the Taxes and TD1 for (Employee Name) window. Override the incorrect ‘Current’ amounts with the correct ‘Suggested’ amounts. NOTE: if you’ve ever used a ‘Custom’ amount (in other words, you’ve entered something other than the basic default amount into the employee profile), this amount will ALWAYS need to be manually updated, unless you change back to the basic ‘Suggested’ amount (and the updates are working properly). Now would be a good time to hand your ‘Custom Amount’ employees a blank Federal and Provincial TD1 form so you can update their tax credits in Quickbooks. Here’s the link to the forms for 2015:

http://www.cra-arc.gc.ca/formspubs/frms/td1-eng.html

It’s worth noting that “Individuals do not have to complete a new TD1 every year unless there is a change to their federal, provincial or territorial personal tax credit amounts. If a change happens, they must complete a new form no later than seven days after the change.” This is from the following page on the CRA website where you’ll find more information about form TD1:

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/hwpyrllwrks/stps/hrng/td1/menu-eng.html

If you’ve already run the first payroll of the year, don’t panic. Just go in and make the changes now.

 

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QuickBooks Canada 2013 R7 released. Goodbye, Samples of Common Payroll Items…

UPDATE: Apparently the problems plaguing the R7 update in the US could be problems in Canada as well. According to tech support, the R8 update (payroll) will be released by the end of June. It is advised that you wait!

QuickBooks released their 2013 R7 update this week. If you’ve selected the option for automatic updates, you should be prompted to install the update when you open QuickBooks. The other option is to manually install the R7 update. Here’s a link to the instructions as well as the R7 release notes:

How to manually install QuickBooks 2013 updates

The R7 update includes the July 2013 (97th Edition) Tax Table, which you’ll need before processing payroll in July. To confirm you have the correct tax table:

Employees > My Payroll Service > Tax Table Information. From there you can click on the Tax Table Info button for more detailed information.

One important thing I noticed about this release is that they’ve removed the Samples of Common Payroll Items guide from the HELP menu! Rather than a handy chart, they now direct you to the CRA website. I’m not a fan of this change! I loved the Samples of Common Payroll Items guide. However, I’ve been told by the folks at Intuit that this change is permanent.

TIP: before updating your file to R7, copy and paste this guide into Word.

That said, it’s always been a good idea to consult the CRA and Service Canada websites when setting up your payroll items. Look for the T4130 Employers’ Guide – Taxable Benefits and Allowances on the CRA website and information about insurable earnings on the  How to Complete the Record of Employment Form on the Service Canada website.

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