Hi there: I read on this forum many months ago that someone corrected EI & CPP by going to the Payroll module for the particular employee and then entering an amount in the "Advance" box that equalled the amount of the EI & CPP to show as a deduction. The result would be a net of zero so no cheque or Cr. to the Bank would result. It ends up that there is then and Advance Receivable from Employee that will have to be cleared through the payroll module for this employee. If the employee was not terminated then the advance could be "paid back" on their next paycheque.
When doing the entry to "pay back" the advance, since this employee is terminated, instead of having the entry go through the bank, go up and choose from the drop down menu another expense account that you would prefer to post it to. I guess Miscellaneous expense since that's where you ended up posting it in your scenario. You have to go to the account name in the Chart of Accounts, and in the Class tab, choose Bank so that whatever account you choose will be an option in the drop down.
This doesn't really change what you have done however. The end result is the same. The above suggestion was put forth as a way to "fix" the EI & CPP deductions to be reported on the T4 when you find out later on that it was wrong and want to correct it before printing the T4's. As long as the employee is still going to get another paycheque to deduct the advance against it is an ingenious way to fix the problem from the prior calendar year. Only if the T4's haven't been done yet though because you have to go back and date the "Advance" and the EI & CPP deductions in the calendar year at Dec. 31st. Rita Deering
