I have a client who for the first half of the year took a salary so I processed them through the payroll system. He switched over part way through to draws (which will be dividends). I've just received the year end adjustments from his accountant (yr end is Mar 31). He made a note in the management letter to add a taxable benefit to his 2018 T4 to account for the low interest loan taxable benefit. There were no adjusting entries related to this. How should I be processing this? Should I do it through the payroll module and put the amount under benefits in the right hand side box? I read something similar on another post that then said I need to adjust the income taxes calculated to out the net payroll to zero (CPP is calculated). This results in having to put in a negative inc tax amount that matches the CPP deduction calculated. Is that all I need to do? Never encountered this situation before so wanted to confirm before I proceed.
78
166
