Question re Quickbooks


A

Alan Sutton

Hi,

I have just purchased QuickBooks 2004 and have got myself around pretty good
but I have hit a stumbling block. I have the Canadian version but I'm sure
the answer to the problem would be with any version. CPP (Canada Pension
Plan) should not show as a deduction until the employee has earned over
$3500.00 but when I print out the paystub it shows as a deduction has
already been made. How do get around this??

I would be grateful of any help, Thanks

Alan
 
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L

Lady

Don't know anything about the Canadian Version or the Canadian Pension Plan
but am wondering if you have it set up in the default employee settings and
therefore it is showing as it is set to show on all new employees??? Just a
guess until your real answer arrives.

Brenda
 
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S

Steph

The employee gets a total credit for the entire year off their gross pay
totalling 3500. Take the 3500, and divide by the total number of pay periods
per year. Then subtract this amount from the employees' gross pay to
determine the CPP taxable amount.

EG: weekly pay (52 pay periods per year) means a reduction of the CPP
taxable amount by $67.30 per week. If the employee is paid $500 per week,
then at the current rate of 4.95%, the CPP taxable amount is (500-67.30) *
4.95% = $21.42

Biweekly pay = credit of 134.62 per pay period
twice monthly = 145.84
monthly = 291.67

The only payroll amount which does NOT begin to accrue until a certain point
is EHT. The basic exemption there is $400,000.00, which means that until a
company's payroll EXCEEDS $400,000 they are EXEMPT from accruing and
remitting EHT.

If you have any further questions, please feel free to ask.


--
Stephanie Serba, AICIA
Partner, Accounting & Technology
Durham Business Outsource
www.dbo.ca


If you have any further questions, let me know.
 

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