Deducting additional / extra tax

If you need to deduct extra or additional tax for an employee, you can easily add these amounts to your pay run. First determine if you need to do a one time extra deduction or if you will need to deduct an amount over multiple pay runs.

One time deduction

1. Log into your payroll account and start your pay run as normal.
2. At the REVIEW stage select the employee from the drop down list you wish to deduct additional tax for and modify the FEDERAL TAX or *NEW EXTRA INCOME TAX field.
   
3. SAVE the record and complete your pay run. Your remittance report and your employee payslips will reflect the additional (manual) tax amount you've entered.

Additional tax as a rule: Federal Tax (multiple pay runs)

For all new setups follow instructions below:

1. Log into your Payroll Account
2. Now go to the EMPLOYEES section, click on the employee Profile and navigate to the Deductions tab.
   Use the drop down box to select the Extra Income Tax deductions and click ADD.

   

3. Now determine if you'll be taking a fixed amount  ($) from each pay run or a percentage of their gross (%). Enter the amount or percentage and click SAVE.

   

4. Now when you perform your next pay run, the additional tax will be deducted for the employee and will be reflected in your remittance reports. 

Additional tax as a rule with Québec Provincial Tax (multiple pay runs)

1. Go to SETTINGS>PAYROLL OPTIONS>GL and look at your GL code for Provincial Tax.  If it is the same as Federal tax  change it to a different number and click SAVE.

2. Go to SETTINGS>PAY RULES>DEDUCTIONS and Add a New Rule- call it something along the lines of Extra/Additional Prov tax. and set the GL to be the SAME number as what was set up in Step 1 and SAVE.

3. Now go to the EMPLOYEES section, click on the employee Profile and navigate to the Deductions tab.
Use the drop down box to select the deductions you created in step 2 and click ADD.

4. Now determine if you'll be taking a fixed amount  ($) from each pay run or a percentage of their gross (%). Enter the amount or percentage and click SAVE.

5. Now when you perform your next pay run, the additional tax will be deducted for the employee and will be reflected in your remittance reports.