RRSP

SOLVED

I have a client who wants to match RRSP contributions for employees by providing a once per year lump sum payment to the employee's respective RRSP company (with employee proof that they have personally contributed the same amount). From what I have read on the CRA website, this is considered a taxable benefit . The amount is subject to CPP and EI (both employee and employer share) but not Income Tax deductions.

I am not sure how to enter this in Sage?

Can I increase the amount of CPP and EI deductions on one of their regular pay cheques by manually overwriting the amounts?

Thanks in advance 

  • 0
    verified answer

    You can set it up as a taxable benefit on the income tab and tick off CPP and EI to be taxed on it. It will automatically calculate the CPP and EI for you.

    To do that go into Setup ->Settings->Payroll then select Income and change one of the Income to read as RRSP ??? then change the Type from Income to Benefit and ensure the tick marks are proper.