Set Up Your Company for PRPP or VRSP

Switch to single-user mode (Sage 50 Premium Accounting)

1. First create an account in the chart of accounts so you can process the deduction.
2. In the Home window on the Setup menu, choose Settings.
3. Click Payroll and then Deductions.
4. Rename an unused Deduction to an appropriate name; for example, PRPP or VRSP deduction.
5. In the Deduct by column, select Amount or Percent of Gross.
6. Clear the checkmark for Deduct After Tax since a plan contribution is deductible from income before income tax is applied.
7. In the Home window on the Setup menu, choose Settings.
8. Click Payroll, Linked Accounts, and then Deductions.
9. Select the appropriate account for the deduction.

To modify the employee's record

1. In the Home window, click Employees & Payroll.
2. In the Tasks pane, right-click the Employees icon and select Modify Employee from the menu.
3. Select an employee from the list and click OK.
4. Open the Deductions tab and place a check mark next to the appropriate plan deduction in the Use column.

If the employer is contributing to the employee’s retirement savings plan, the employer needs to set up a payroll expense and link it to the appropriate payroll expense account.

1. In the Home window on the Setup menu, choose Settings.
2. Click Payroll, Names, and Additional Payroll.
3. In the User-defined Expenses section, enter the benefit you are creating; for example, PRPP or VRSP- Employer.
4. Then open the Setup menu and choose Settings, Payroll, Linked Accounts, and then User-defined Expenses.
5. Select the expense account to link.

Note: The Employer's portion payable account used here cannot be the same as the payable account chosen for the Employee's deduction.

6. Click OK.
7. Open the Employee Records window and select an employee.
8. Click WCB & Other Expenses and enter the employer expense amounts for this expense.
9. Click Save and Close.