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How do I correct my company file if I overpaid my payroll liabilities?

Locate the correct amount that should be remitted
  1. From the Reports menu, select Employees & Payroll, then PD7A Report.
  2. In the Dates field, select the required date range.
Adjust the payroll liabilities for the company
  1. From the Employees menu, select Payroll Liabilities, then Adjust Payroll Liabilities (for QuickBooks 2007 and earlier, select Process Payroll Liabilities, then Adjust Payroll Liabilities).
  2. Change the Date to date that the adjustment is for.
  3. Change the Effective Date to date that the adjustment is for. The effective date will depend on whether the adjustment should be reflected in the period that it occurred or in the next remittance period.
  4. In the Adjustment is for section, select Company.
  5. In the Item Name drop-down, select the payroll item you wish to adjust.
  6. To adjust an overpayment, enter a negative amount of the adjustment.

    Example: CPP company amount remitted was $120.00. The remittance should have been $100.00. In the amount column, enter -$20.00.

  7. Enter an explanation in the Memo field, if desired.
  8. Click the Accounts Affected button.
  9. If you want the payroll adjustment to affect accounts, select Affect liability and expense accounts. Otherwise, select Do not affect accounts.
  10. Click OK to close the Affect Accounts window.
  11. Click OK again to record the adjustment.
Adjust the payroll liabilities for the employee
  1. From the Employees menu, select Payroll Liabilities, then Adjust Payroll Liabilities (for QuickBooks 2007 and earlier, select Process Payroll Liabilities, then Adjust Payroll Liabilities).
  2. Change the Date to date that the adjustment is for.
  3. Change the Effective Date to date that the adjustment is for. The effective date will depend on whether the adjustment should be reflected in the period that it occurred or in the next remittance period.
  4. In the Adjustment is for section, select Employee.
  5. Select the Employee from the drop-down list. The adjustment can affect the T4 for that employee.
  6. List the payroll items that will be adjusted under Taxes and Liabilities with the corresponding amount. To adjust an overpayment the amount will be negative.

    Example: EI remitted for the employee was $50.00. The remittance should have been $40.00. In the adjustment, enter -$10.00 for the amount.

  7. Enter an explanation in the Memo field, if desired.
  8. Click the Accounts Affected button.
  9. If you want the payroll adjustment to affect accounts, select Affect liability and expense accounts. Otherwise, select Do not affect accounts.
  10. Click OK to close the Affect Accounts window.
  11. Click OK again to record the adjustment.

You may be required to remit an amendment. Contact CRA for more information.




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