View Items to Check Before Generating CCQ Payrolls

1. Payrolls > Configurations > Configurations

Make sure you enter all the required accounts, so that payroll transactions are created in the correct accounts.

The number of pay periods is important to enter, as GEM-TMS calculates annual income for tax purposes based on this number.

For example: if an employee's pay is $500 for the current pay and the number of pay periods per year is 52, will understand that the employee has an annual salary of $26,000. Under these configurations, you'll see a “Payroll deduction and contribution rates” table. This table shows government rates by year. It is advisable not to modify these figures, as they are governed by the government.

In the payment configuration, go to Payrolls > Configurations > Configurations.

In the Payroll Configurations page, you have several options.

Other Types of Income

Click on Payrolls > Configurations > Other Revenues.

If you want to add other types of income to your payroll, this is where you set them up (for example, for mileage or tips). You'll be able to decide whether or not the employee pays tax on this type of income, and to which accounting account it is associated. For example, mileage will generally be tax-free. You can also configure a box for Statements 1 and T4s for each type of income. If these boxes are left empty, the income will be considered as standard income when these reports are generated.

General Ledger Advance 

Click on Accounting > New transaction.

Select an asset account (e.g. 1055 - Advance to employee) and make it non-taxable.

• Make a deposit or cheque;
• Make a general ledger entry;
• In the reference, enter the employee and payroll number (optional);
• Enter a label: to track advances by employee with a single GL code. Alternatively, create a GL for advances by employee;
• Enter the transaction.

Click on Save and Close. 

Validating the Advance Transaction

Go to Accounting > Report > Balance Sheet. 

In the balance sheet window, click on Send.

The advance should be reflected in the balance sheet as an asset, as shown below: 

Other Types of Deductions
As with other types of income, it is possible to set up additional deductions, such as alimony* or RRSPs. For a deduction, it is possible to configure whether it is calculated annually, by the hour, or on a percentage of gross salary. When configuring the payroll of a human resource in the next step, you can enter the amount in money or as a percentage, depending on the configuration specified here. There's also a checkbox to indicate when the employer is the one paying the amount instead of the human resource.

In the payment configuration, go to the Human Resources > Human Resources menu and select the desired record. 

Then click on the Payroll tab.

Click on +New in Other Deductions.

You'll then see a drop-down menu allowing you to choose one of the deductions you've set up in the configurations. Once you've chosen the deduction you want, all that remains is to select the amount, according to the type of calculation specified in the configuration of the chosen deduction.

When you click on +New, you must fill in the following fields:

• Deduction
• Amount
• Calculation type (Annual amount, Percentage of gross salary or Amount per hour)

Click on Save and Close. 

For a fixed-amount support payment deducted from each paycheck, use Annual amount. If you want $200 taken from each paycheck, enter $5200 for a bi-weekly paycheck.

After that, when you go to run a payroll with this human resource, you'll see the deduction automatically added to the payroll with the specified calculation.

Non-monetary Advantages

If you'd like to add non-monetary benefits, such as car rentals, this is where you can set them up. Non-monetary benefits mean that the human resource is taxed on the value of the benefit.

Click on Payroll > Configurations > Non-monetary advantages> +Add.

Please enter the following information:

• Name;
• Case for RL-1;
• Case for T4.

Check or uncheck the following options:

• Provincial taxable;
• Federal taxable;
• Admissible to the calculation of the RRQ;
• Eligible for the calculation of the QPIP;
• Eligible for employment insurance calculation;
• Eligible for the calculation of the CNESST;
• Eligible for FSS calculation.

Click on Save.

Payroll

You're now ready to make payrolls on Asset! Open the Payroll menu and click on +New at the bottom of the list. If an error message appears, it means that a configuration has not been correctly completed. The error will specify where the problem lies.

When naming your payroll, we recommend something like 1801 for the first payroll of 2018, 1904 for the 4th payroll of 2019, etc. When you make a payroll, a transaction of this type will be created automatically for you;

To DEBIT
           SALARY EXPENSE BY EMPLOYEE CATEGORY
           SALARY EXPENSE BY EMPLOYEE CATEGORY
           SOCIAL BENEFITS (employer costs) BY EMPLOYEE CATEGORY
           SOCIAL BENEFITS (employer costs) BY EMPLOYEE CATEGORY

To CREDIT
           CNESST TO PAY
           QUEBEC INCOME PAYABLE (Including provincial income tax, QPP, HSF, QPIP)
           REVENU CANADA À PAYER (Including federal income tax, unemployment insurance)
           SALARY PAYABLE (includes all salaries)
           MISCELLANEOUS PAYMENTS (Optional - if you've set up FTP, Pension, etc.)

Also, for each of your employees paid by cheque and for all other employees who receive direct deposit, there will be this transaction:

IN DEBIT
           SALARY TO BE PAID
To CREDIT
           BANK