Payroll Incomes and Deductions

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You will find the Incomes and Deductions setup options in the Setup menu, under Settings, and then Payroll.

When you process a paycheque for an employee, any calculations that apply to the employee's incomes and deductions are calculated for you in the paycheque window.

Incomes

Incomes are the cash and other material benefits that employees receive in the course of their work. You can have up to 28 unique payroll incomes in Sage 50 Accounting. Depending on the income, it may be subject to taxes; it may also need to be factored into vacation amount calculations. To reduce your company set up time, Sage 50 Accounting provides a number of pre-defined incomes whose applicable taxes cannot be changed. These incomes have all of the calculations and taxes selected in accordance with federal and provincial  requirements. If you need to add incomes other than those provided (for example, a car allowance), check with the appropriate tax authorities to determine which taxes the new income is subject to.

Depending on your company's payroll incomes, you may need to change some of their Income Types.

Deductions

Deductions are monies withheld on employee paycheques. Depending on the deduction, some or all taxes may have to be calculated before the deduction is subtracted from cheque. There are no pre-defined deductions in Sage 50 Accounting, so will need to check with your federal and provincial  authorities to determine which deductions you need to define and which taxes apply to specific deductions.