Taxable Benefits

SOLVED

We have a number of employees that have taxable benefits that are EI insurable. So the EI column should be checkmarked on the Benefits line in the payroll setup section. However, the Benefits line has only the Tax and CPP columns checkmarked. The top 5 lines (Advances, Loans, Benefits, Benef. (Que), Vac. Earned and Vac. Paid) are highlighted in blue and have "System" as the type. All of these highlighted "System" lines will not allow any edits. Does anyone know any way around that?

  • 0
    verified answer

    Hi GPjess,

    If the taxable benefit is subject to EI withholdings, you can go to Setup, Settings, Payroll Incomes to setup a new payroll benefit.  This will allow you to put the check mark to the columns you want.

    You can follow the KB link below for steps to setup the benefit.

    How to create a new payroll benefit? - KB10394

    Written below is the link from CRA for Benefits and allowances chat.

    Benefits and Allowances chat

    Hope this helps.

  • 0 in reply to Keith L

    Thanks so much, Keith! I can see that would definitely work. Unfortunately, we've already used up our 20 incomes, so are unable to add more. I guess we'll just have to manually calculate the EI.

  • 0 in reply to gpjess

    Gpjess,

    Correct, or you can combine some of your incomes to one income type to make that extra space for the new benefit

    Hope this helps.

  • 0 in reply to Keith L

    Thanks Keith! I didn't think I could combine incomes, as they all need to be recorded to different accounts, but I just figured out how to make it work for our company. I have now set up Payroll Expense Groups, so our different divisions can have the different types of salaries, bonuses, allowances, etc coded to different accounts by division, but can still use the same income field for each type. Previously I had set up 4 salary incomes, 4 vehicle allowance incomes, 4 bonus incomes, etc, for our 4 divisions, as I thought that was the only way to have them record to the different accounts. But with Payroll Expense Groups I can have only 1 salary income, 1 vehicle allowance income, 1 bonus income, etc, and set up expense groups for each of the divisions and link the appropriate accounts within each group. Then I assign the appropriate expense group (division) to each employee, and I have now cut our income types down from 20 to only 5 (giving me plenty of room to add in our own customized benefits income). Thanks again, Keith!

  • 0 in reply to gpjess

    Hi Gpjess,

    Thanks a lot for sharing the solution with us and help others who have the same issue. Big Smile

    For information purpose, expense group is under Setup, Settings, Payroll, Linked Accounts.  This feature is available from Sage 50 Premium and up.