Employees
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.
Quickly add a new employee
Sage 50 Accounting allows you to add a new employee to the program without going through the formal process of creating a new employee record. For example, you have hired a group of 40 youth painters for summer painting jobs and need to get them into your database quickly before the first pay period.
You can add a employee "on the fly" when you process a paycheque. You can always go back later into the employee record to enter more information.
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.