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I have a year-end payroll issue. Client was making the wrong remittances for the last 4 months of 2019. Now I have a $32.56 discrepancy between the CRA Payroll Account balance and AgExpert balance. I would like to make an adjustment to his federal taxes on the December paycheque in order to have AgExpert payroll remittances agree to CRA. His salary is $3,000 per month, and net is $2,350. Whenever I try to adjust the taxes deducted, it adjusts the net amount of the paycheque. Any hints? It's not a large amount, but would like to have all my AgExpert #'s agree to CRA. I can't carry this forward to 2020 and fix it with the next remittance, as he is not taking a salary in 2020.
Hi Chery! Sorry for the delayed response. This one got lost in our inbox somehow, thankfully I noticed you were able to call in and speak with someone on the Customer Care team about this issue. I'm going to go ahead and answer the question anyway as I'm sure you're not the only person to have faced this situation at year-end.
Adjustments to T4's as you already know need to be done by creating new paycheques. The tricky part as you've discovered is that when no actual cheque is that the adjustment ends up, out of necessity affecting more than one thing. In this instance, you can't make an adjustment to Federal Tax without also either increasing the Gross Pay or making a corresponding adjustment to another deduction such as when we reconcile EI and CPP at year-end and when making any required changes, offset those adjustments against Income Tax.
In this instance, the only way to keep his Net Pay at $2350.00 and maintain all other deductions at their current YTD balance, you will need to bump up his salary on this paycheque by the same amount as your adjustment to Federal Tax.