Update Claims Subject To Indexing For A Group of Employees

Employees have completed both federal and provincial/territorial TD-1 forms.

You can also go to the individual employee records and modify the personal claim information on the Taxes tab.

Select a task based on the type of claim you are updating:

  1. In the Home window on the Maintenance menu, choose Update Employee Claims.
  2. In the Type of Personal Tax Credits section, select Federal.
  3. In the table, select the employees you want to update. To select all the employees, select the box in the heading above the check boxes. The list also includes inactive employees.
  4. In the Update Amounts section, click the Update Basic Personal Amount button to update the selected employees with the new Basic Personal Amount.

    5. Note: If you are a payroll subscriber, Sage 50 Accounting obtains the latest Basic Personal Amount when you install the latest January payroll updates.

  5. Update the employees' Other Indexed Amounts by choosing one of the following methods:

    Updating the employees' Other Indexed Amounts
    If you want to do this:Do the following for the type of claim you are updating:
    Update the Other Indexed Amounts by an indexing factor
    1. In the Update Amounts section, select Factor and enter the indexing factor, up to four decimal places. Do not enter percentages. If you subscribe to a service plan that includes payroll, at the start of each payroll year, you can enter the federal indexing factor provided in the Sage 50 Accounting payroll update guides for that year.

      2. To convert a percentage to a value that you can enter in Sage 50 Accounting, divide the percentage by 100 and add 1 to the result to get the final number. For example, to increase the claim amounts of all employees by 1.7 percent, enter a factor of 1.017 (not 1.7 or 0.017).

    2. Click Update Other Indexed Amounts to apply and save your changes.
    Update the Other Indexed Amounts by an amount
    1. In the Update Amounts section, enter a number in the Amount box. For example, to increase the claim amounts of employees by an additional $285, enter 285 in the Amount box.
    2. Click Update Other Indexed Amounts to apply and save your changes.
  6. Click Close. Sage 50 Accounting will also update the federal claim amounts on the Taxes tab of the employee records.

Note: The tax credit amounts that are calculated by Sage 50 Accounting may vary slightly from the TD-1 published amounts, due to rounding. For example, if you enter a factor of 1.017 and the employee's Federal Claim was $8012.00, Sage 50 Accounting revises the Federal Claim to $8148.20 instead of the published $8148.00. (This will not significantly affect the calculation of payroll tax deductions.) If you wish, you can modify the employee's Federal Claim amount to match the published amount. The rounding effect is less if you update the employee claims by amount.

  1. In the Home window on the Maintenance menu, choose Update Employee Claims.
  2. In the Type of Personal Tax Credits section, select Provincial. In Province, select a province or territory to display a filtered list of employees.
  3. In the table, select the employees you want to update. To select all the employees, select the box in the heading above the check boxes. The list also includes inactive employees.
  4. In the Update Amounts section, click the Update Basic Personal Amount button to update the selected employees with the new Basic Personal Amount.

    5. Note: If you are a payroll subscriber, Sage 50 Accounting obtains the latest Basic Personal Amount when you install the latest January payroll updates.

  5. Update the employees' Other Indexed Amounts by choosing one of the following methods:

    Update the employees' Other Indexed Amounts
    If you want to do this:Do the following for the type of claim you are updating:
    Update the Other Indexed Amounts by an indexing factor
    1. In the Update Amounts section, select Factor and enter the indexing factor, up to four decimal places. Do not enter percentages. If you subscribe to a service plan that includes payroll, at the start of each payroll year, you can enter the provincial or territorial indexing factors provided in the Sage 50 Accounting payroll update guides for that year.

      2. To convert a percentage to a value that you can enter in Sage 50 Accounting, divide the percentage by 100 and add 1 to the result to get the final number. For example, to increase the claim amounts of all employees by 1.7 percent, enter a factor of 1.017 (not 1.7 or 0.017).

    2. Click Update Other Indexed Amounts to apply and save your changes.
    Update the Other Indexed Amounts by an amount
    1. In the Update Amounts section, enter a number in the Amount box. For example, to increase the claim amounts of employees by an additional $285, enter 285 in the Amount box.
    2. Click Update Other Indexed Amounts to apply and save your changes.
  6. Click Close. Sage 50 Accounting will also update the provincial or territorial claim amounts on the Taxes tab of the employee records.

Note: The tax credit amounts that are calculated by Sage 50 Accounting may vary slightly from the TD-1 published amounts, due to rounding. For example, if you enter a factor of 1.017 and the employee's Federal Claim was $8012.00, Sage 50 Accounting revises the Federal Claim to $8148.20 instead of the published $8148.00. (This will not significantly affect the calculation of payroll tax deductions.) If you wish, you can modify the employee's Federal Claim amount to match the published amount. The rounding effect is less if you update the employee claims by amount.