HI there,

Just trying to set up an employee in payroll (only employee) and in the payroll leger under the taxes tab there is the area for federal and provincial claims. I have put in the amount which is the basic amounts of $9600.00 and $9189.00. Not sure what amount I put in the Federal claim subject to indexing and provincial claim subject to indexing? Would this be the same amount put in for each? Also there is no historical amount for this employee....well the accountant had set them up as a subcontractor making them responsible for their own taxes. So does this mean I can click the button for when it asks if I am finished entering historical info in payroll?????This person is going to be now a full time employee for business being paid a salary. Just new to this and trying to get this all set up......

 

thanking you in advance............

Hi: You can leave those other spaces blank. If there was no prior history for this employee you can click the button for finished entering for this employee. Rita Deering

Hi,

 We have put the same amount in the indexing, does this cause different amounts to be subtracted from the employee's pay than if we leave them blank?

 

Thanks

Hi there: No, I don't think it makes any difference. I'm not sure why that option is even there. Rita Deering

Thank you Rita,

Another question reguarding payroll is on the income and deductions tabs in the payroll leger, are we supposed to put anything in there. This employee is paid 400.00 per week by salary. Just regular deductions ei,cpp and taxes, nothing more than that. Just want to be sure I am not missing adding anything in or for that matter taking something out.......lol

 

Thanks

Hi again: No, you have your set up as you need it to be for that employee. You will see in the Income tab when you are doing the paycheque that the $400.00 salary per week is showing there. In the deductions tab there will be nothing unless you have set up some kind of deduction that you take off the employee each payday, or periodically for some reason or another. The EI, CPP and Tax deductions are NOT part of the deduction tab. They are separate in the Taxes tab. So you are just fine the way you are for this employee. Rita Deering

Thanks Rita,

So on the income tab there is certain ones that are already checked (defaults i guess) and salary is one of them. Beside that is the column for UNIT and it says PERIOD then the next column says AMOUNT PER UNIT and next is HOURS PER PERIOD should i be putting an bi weekly amount of $800.00 in one of these columns as this employee is paid bi-weekly, or what sould I be putting in these columns???????I will learn this stuff if it kills me.............teehee!!!!

Hi again: I am confused about which Income and Deductions tabs you are referring to in the previous post. I thought you were talking about those tabs in the Paycheque window. It sounds now like you are referring to the actual setup choices in the Employee window where you get started by inputting the information for each employee. Is this the case? If so, you can input whatever works for the employee you are doing. If they are paid the same amount each pay period, without changes, you can enter the amount and set the bi-weekly time period. But there are a number of variables. If you go to the Payroll module and go up to the Help and ask it the question "how to set up employees in payroll" or some such thing, see if it will give you a more detailed, step by step instructions based on the various options you have. Rita Deering

Shawnec:

Thanks Rita,

So on the income tab there is certain ones that are already checked (defaults i guess) and salary is one of them. Beside that is the column for UNIT and it says PERIOD then the next column says AMOUNT PER UNIT and next is HOURS PER PERIOD should i be putting an bi weekly amount of $800.00 in one of these columns as this employee is paid bi-weekly, or what sould I be putting in these columns???????I will learn this stuff if it kills me.............teehee!!!!

In the Salary income line you will need: a checkmark in the Use column, Period in the Unit column, 800.00 in the Amount per Unit and possibly the amount of hours for the two weeks in the Hours per Period column.  You will also need to enter 26 for the Period Per Year field, a dot for the The Payroll linked account (assuming you did link one in the Settings) and finally a checkmark on Retain Vacation as well as the percentage amount (4.00% if in Ontario).

Thank you Michael......................and Rita!!!

Hi all,

 The option for the Indexing amount is there to make starting a new year easier if you have a large number of employees.

If, for example the personal amounts are indexed (increased) by 5%, it will increase the total personal amount by the 'amount subject to indexing' times the rate.  So if your personal amount is 10,500 ($1000 plus $9600 basic exemption), and $9600 is indexed, the new personal amount $9600 * 1.05 + $1000 = $11,080 is automatically changed based on the index rate when starting a new payroll year.  

 In the real world, peoples' situations change fairly often and we're under 50 employees, so I usually Email out new TD1s every year. 

 

the indexing field is there because the BASE amount (employee and spouse if applicable) is indexed where the additional exemptions (ie: tuition, age) are not. So if you have an employee who qualifies for the child amount you'd enter 11638 for the federal claim and 9600 for indexing. Then when you use the "update claims" function under the maintenance menu, you'll get the right new claim amount. (at least, that's the theory... :-)