Manual Entries for Payroll in Canada

Canadian Payroll related entries can be entered manually using Journal Voucher. You can use the CRA Online Payroll Calculator to calculate the net Amount Payable and Total Employer Remittance amount. You will be looking for the two reports:

1. Payroll Deduction Report
2. Employer Remittance Summary

Calculating salary at CRA

To calculate the Salary at CRA, follow the steps as mentioned below:

1. Select Salary
2. Enter Employee's Name
3. Enter Employer's Name
4. Select Province/ Territory
5. Select Pay Period Frequency
6. Select Date Paid
7. Click Next
8. Enter Salary Amount per pay period
9. Select Benefits, if any
10. Click Next
11. If Benefits are selected, enter the Amount as needed
12. Click Calculate
13. Print or Save Calculated Salary

After entering all the information, Salary Calculation will look something like the picture below.

Once the Salary is calculated at CRA, click Employer Remittance Summary. This will automatically generate the summary according to the Salary Calculated.

Accounts needed for Payroll Entry 

Once you have both the calculations at CRA, you can go ahead and enter Payroll manually in SlickPie. To create a Payroll in SlickPie, you need the following accounts:

Payroll Deduction Report

You need the following Accounts to enter Manual Payroll:

1. Payroll Expense
2. Tax Deduction
3. CPP Payable
4. EI Payable
5. Bank Account where it will be paid from

• Go to Transactions and Select Others

• Click Journal Voucher

• Click Add New

• Input a Reference. For Reference, you can enter the employee's name and the Pay Period
• Enter the Date on which the Payroll is created.

Please note If you want to use the same reference in each section, select Default Reference.

This is how you will enter the information in each line:

Line Item 1: Payroll Expense - Total Salary as Debit

Line Item 2: Payroll Expense - Total Employer Contribution as Debit

Line Item 3: CPP Payable - CPP Contribution as Credit

Line Item 4: EI Payable - EI Contribution as Credit

Line Item 5: Tax Deductions - Tax Contribution as Credit

Line Item 6: Bank Account Name where the Payroll will be coming out of as Credit

• Once the entries are made, you can Save it as a Draft or Post.

For example, When creating a Payroll for Donna Raymond (her salary is $2,144.42) for March 2016, this is how it will be entered:

Please note Selecting Default Reference will automatically fill out the empty Description fields.

Employer Remittance Summary

If you have more than one employee, enter the above Journal Entry for each employee and get the totals for the Remittance Entry. The following accounts are needed to make the required entry:

1. CPP Payable
2. EI Payable
3. Tax Deductions
4. Bank Account from which it will be paid from

• Go to Reports.

• Go to Detail Reports and click Account Summary.

• Enter the specific Bank Account where the Payroll is deducted and specify the pay period in Date Range. Click Update.

To enter the remittance, follow the same steps to go to Journal Voucher as mentioned above for entering Manual Payroll.

• Once you click Add New, enter the Reference as Payroll Deductions and specify the Month and year you are creating it for.

• Specify the Date it's being created on.

This is how you will enter it in Journal Voucher:

Line Item 1: CPP Payable - CPP Contributions as Debit

Line Item 2: EI Payable - EI Contributions as Debit

Line Item 3: Tax Deductions - Tax Contribution as Debit

Line Item 4: Bank Account Name as Credit

• Once the entries are made, you can Save it as a Draft or Post.

For example, Employer Remittance for Donna will be created as:

Please note this example is for only 1 employee. As mentioned above, if you have more than 1 employee, you need to get the Account Summary to enter the correct number.

Last but the most important, once the Payroll and Employer Remittance has been created in SlickPie, remit the Total Employer Remittance amount on a check named to Receiver General of Canada.