An employee is generally a person working for your company who you pay on a regular basis; they may perform work your company requires on a day-to-day basis (such as administration, marketing, shipping) or work performed for your customers (on-site services, such as technical support or cleaning services).
- Employee — required to have income tax, CPP, and EI amounts deducted from each paycheque.
- Owner or Partner — not eligible for EI deductions.
- Officers of incorporated companies — exempt from EI deductions if individual owns more than 40% controlling shares.
Contact your accountant or local CRA office for more details on setting up different types of employees.
Why do I need to create employee records?
Creating employee records in Sage 50 Accounting lets you keep track of basic information, such as the employee's hire date and the amount you have paid the employee over a year. With an employee record, you can also process paycheques quickly, because pre-determined amounts are deducted automatically from your bank account.
My employee quit/terminated
If you do not want to continue issuing paycheques for an employee, and the employee is not a salesperson, set their record to Inactive.
- You have printed the T4 slips, Relevé 1 slips (for Quebec employees), T4 and Relevé 1 summaries, and Employee summary and detail reports at the end of the calendar year.
- You have entered the date of the employee's last day of work in their Sage 50 Accounting employee record.
- There are no amounts outstanding in their record from the current or previous year. For example, if there are advances outstanding or vacation pay owing, you must wait until transactions have cleared and changed the balances to zero.
- There are no amounts outstanding in their record from the current or previous year. For example, if there are advances outstanding, you must wait until transactions have cleared and changed the balances to zero.