Set Up Your Company for PRPP or VRSP
Like other payroll deductions, a deduction for a PRPP or VRSP is set up to track and calculate your employee's deductions for the selected plan.
Note: The payroll deductions in the blue area of the table cannot be modified. You may not be able to rename all payroll deductions.
To set up a payroll deduction
- First create an account in the chart of accounts so you can process the deduction.
- In the Home window on the Setup menu, choose Settings.
- Click Payroll and then Deductions.
- Rename an unused Deduction to an appropriate name; for example, PRPP or VRSP deduction.
- In the Deduct by column, select Amount or Percent of Gross.
- Clear the checkmark for Deduct After Tax since a plan contribution is deductible from income before income tax is applied.
- In the Home window on the Setup menu, choose Settings.
- Click Payroll, Linked Accounts, and then Deductions.
- Select the appropriate account for the deduction.
To create the employer’s expense (optional)
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.
- In the Home window on the Setup menu, choose Settings.
- Click Payroll, Names, and Additional Payroll.
- In the User-defined Expenses section, enter the benefit you are creating; for example, PRPP or VRSP- Employer.
- Then open the Setup menu and choose Settings, Payroll, Linked Accounts, and then User-defined Expenses.
- Select the expense account to link.
- Click OK.
- Open the Employee Records window and select an employee.
- Click WCB & Other Expenses and enter the employer expense amounts for this expense.
- Click Save and Close.
Note: The Employer's portion payable account used here cannot be the same as the payable account chosen for the Employee's deduction.