Scenario: You hired an employee with a monthly gross salary of $3,000. This salary includes CPP(employee and employer portion), EI(employee and employer portion), and income tax. As an employer, you remit CPP, EI, and Tax to the CRA. You want to log this into MiPropertyPortal. As there is no Payroll module, you want to log it as an expense.
Below are the step-by-step instructions.
Method: 1
Step 1: Calculate Deductions. You can use the CRA Payroll Deductions Online Calculator.
Step 2: Make sure you have the following Expense Chart of accounts:
– Canada Pension Plan
– Employment Insurance
– Income Tax
– Net Salary Payment
Create Charts of Accounts if they do not exist.
Step 3: Add the employee as a Vendor.
Create a Bill as follows:
- Title: “Employee Salary for [Employee Name/ID] – [Month/Year]”
- Choose the dates properly
- Add line-items:
- Item: CPP
- Select Category: Canada Pension Plan
- Quantity: 1
- Price: XXX.XX
Click Add Item
- Item: EI
- Select Category: Employment Insurance
- Quantity: 1
- Price: XXX.XX
Click Add Item
- Item: Income Tax
- Select Category: Income Tax
- Quantity: 1
- Price: XXX.XX
Click Add Item
- Item: Net Pay
- Category: Net Salary Payment
- Quantity: 1
- Price: XXX.XX
Step 4: Click Save & Approve button
Or, Method: 2
– You need to add 5 different line items under the bill.
– Create your own chart of accounts to log these line items under (category)
For Example:
20115-CRA Payroll Taxes Payable (Liability): <=== Log “Income Tax” Line Item under this account
20116-CPP Clearing (Liability): <=== Log “CPP Clearing under this account
50890-Payroll Employer Taxes and deductions (Expense): <=== Log “CPP” and “EI” line item under this account
20117-EI Clearing (Liability) <=== Log “EI Clearing” line item under this
Example bill line items with amount:
You must create the bill as 100% reimbursable under the office property (if office property is not set as owner managed)