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Adjustments for T4 Boxes

Problem Details:

How to make adjustments for T4 boxes

 Solution:

The following are some of the most common adjustments needed:

Go to Payroll Employees / Transaction History.  Enter the employee number and ensure the date is in the correct calendar year for the adjustment. 

1) Box 14 - Employment Income - on the Taxes tab, enter either INCTAX or BCITAX.  In the 'Earnings Before Deductions' column, enter the amount of the adjustment you want to see on the T4.  

2) Box 16 - Employee's CPP Contributions - on the Taxes tab, enter CPP and in the column 'Employee Extended Amount' enter the adjustment amount.

3) Box 18 - Employee's EI Contributions - on the Taxes tab, enter EIR1 (or whichever EI rate needs correcting) and in the column 'Employee Extended Amount' enter the adjustment amount. 

4) Box 20 - RPP Contributions - create a deduction code in Payroll Setup / Earnings and Deductions and go to the Employee Tab.  Set the T4 Reporting value to Box 20.  Assign this deduction code to the employee.  In Transaction History, on the Earning Tab, enter this code and fill in the adjustment amount in the 'Employee Extended Amount' column.

5) Box 22 - Income Tax - on the Taxes tab, enter either INCTAX or BCITAX.  In the 'Employee Extended Amount' column, enter the amount of the adjustment.  Note that you can combine the adjustments for Box 14 and Box 22 on the same line.

6) Box 24 - EI Insurable Earnings - on the Taxes tab, enter EIR1, and the amount of the adjustment goes in the column 'Ceiling Wage'.  Note that you can combine the adjustments for Box 18 and Box 24 on the same line.

7) Box 26 - Pensionable Earnings - on the Taxes tab, enter CPP, and the amount of the adjustment goes in the column 'Ceiling Wage'.  Note that you can combine the adjustments for Box 16 and 26 on the same line.

Note:  see Ceiling or No Ceiling Wage? for a description and examples for using these specific fields.

8) Box 40 – Other Taxable Allowances & Benefits - create a non-cash benefit code code in Payroll Setup / Earnings and Deductions and go to the Employee Tab.  Set the T4 Reporting value to Box 40.  Assign this deduction code to the employee.  In Transaction History, on the Earning Tab, enter this code and fill in the adjustment amount in the 'Employee Extended Amount' column.

9) Box 50 - RPP Number - Go to Payroll Employees / Employees and open a record.  Click on the Class/Schd tab.  The RPP Number field is on the left about 2/3 of the way down. 

10) Box 52 - Pension Adjustment - create the deduction or benefit code in Payroll Setup / Earnings and Deductions and go to the Employee Tab.  Set the T4 reporting value to Box 52. Assign this deduction code to the employee.  In Transaction History, on the Earning Tab, enter this code and fill in the adjustment amount in the 'Employee Extended Amount' or the 'Employer Extended Amount' column, whichever applies.

11) Box 54 - Business Registration Number - go to Payroll Setup / Income Taxes and select the tax code EIR1.  On the Basic tab, enter the business number in the 'Reporting ID' field.

NOTE:  these adjustments will not affect the employee's YTD totals.  For instructions on making those adjustments, please see this article: How to Adjust an Employee YTD Earnings Total

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