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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Canadian Payroll T4 Is...
Microsoft Dynamics GP (Archived)

Canadian Payroll T4 Issues

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Posted on by Don Craig 280

Good Morning,

We have come across a problem at a customer after running the Create T4 and R1 Creation process within Canadian Payroll.

1.  The union deduction amounts should be in box 44 but they are not pulling up on the T4.

2. Pension ADJ (Box 52) should contain the following Deduction codes should be pulling to this box PENADJ, PENEMP and PENVOL. The only one that is being pulled there is PENADJ. 

Any help on resolving this issue will be greatly appreciated.

 

Thanks

Don Craig

*This post is locked for comments

  • DH-17091352-0 Profile Picture
    DH-17091352-0 2 on at
    RE: Canadian Payroll T4 Issues

    Hi Tami,

    I found another issue that may have affected your 2015 taxes.  Did you check your frequency?  If you are marked as 26 periods instead of 27, you can also see a substantial difference in taxes.

    Debra

  • Tami Farrelly Profile Picture
    Tami Farrelly 5,080 on at
    RE: Canadian Payroll T4 Issues

    The tax deducted was erroneous to the amount of 600- 5000 dollars...not a few cents here and there

    We feel we owe our employees a better solution for payroll.

    if FREE online calculators can get it right...then you would think that a software company like Microsoft would be able to.

    I used several...and they all came up with the exact same amounts

  • DH-17091352-0 Profile Picture
    DH-17091352-0 2 on at
    RE: Canadian Payroll T4 Issues

    Hi Don,

    This you ever get this resolved?

  • DH-17091352-0 Profile Picture
    DH-17091352-0 2 on at
    RE: Canadian Payroll T4 Issues

    I did review this and do a lot of testing a couple versions back.  I had also questioned Microsoft about it.  However, there is a document called T4127 Payroll deductions formulas for Computer Programs, which Microsoft was advised to use.  So the calculations will be different depending on when the employee started and how much is added using a lump sum.  

    However, I have found that if the employee starts January 1 and has a normal payroll the calculations on-line are almost identical (within a few cents).  If you run a test batch for the first pay period of the year on a new test employee and this is not the result then you should check your Employee TD1 values and your paycode tax rules.

    I do agree that this disconnect with other types of payroll can be a problem, but it is what CRA told Microsoft they had to do.

    Every year CRA provides a list of specific changes that are required.  Microsoft does not guess at these changes or decided there is a better way.  They do as they are told.  So really if we can get CRA to listen that is where the change will come from.

    Debra

  • Suggested answer
    Beat Bucher GP Geek GPUG All Star Profile Picture
    Beat Bucher GP Gee... 28,058 Moderator on at
    RE: Canadian Payroll T4 Issues

    Hi Tami,

    We had come to the same conclusion when our PR Master did some calculations and validated them with the CRA & RQ online/calculators tools.

    However, we also found out that historical data for the employee greatly influences the outcome of the pay batch calculation, depending if you pay out lumpsum amounts  or bonuses, and use the wrong paycode type.. If everything is done properly, that variance for a global year remains in an acceptable range..

    What I can't accept is that nobody seems to care of providing a proper guidance about this and how to use the deduction/earning codes correctly. Not to speak about finding a decent reference about the rate calculation in the application, since it's always part of service pack when you have to apply new ones.

    I think there is a Canadian Payroll document issued by the CRA for software integrator, which Microsoft uses to code the module in GP. The formulas explained in that document are supposed to be ones that are used in the CPR module.

    There is definitely room for improvement, not to speak about the user guide that goes back to 2010 hasn't been updated in a while.

    Jenn Kuntz is a Canadian GP consultant and has blogged quite a bit about the payroll module : kuntzconsulting.ca/.../canpay

  • Tami Farrelly Profile Picture
    Tami Farrelly 5,080 on at
    RE: Canadian Payroll T4 Issues

    Hello there,

    We opened a support incident as we found GP is under calculating all employees tax rate...using an online calculator I plugged in several employees income...and compared it to the tax deducted in GP ...it was anywhere from 600 to 3200 dollars short depending on the income....

    MS Support responded

    " Ultimately, GP uses an advanced calculation method that is approved by the CRA to calculate Income Tax. It uses amounts from prior pay periods to annualize the calculation, and that is why you can see slightly different tax amounts from pay run to pay run. The amounts, are within the accepted range of the CRA. "

    And gave me a link

    https://support.microsoft.com/en-us/kb/2773319

    Nice.

    I guess we may be looking for another solution for payroll...

    At least I will not have to fight with the YE tax update issue any more

    Cheers,

    Tami

  • Beat Bucher GP Geek GPUG All Star Profile Picture
    Beat Bucher GP Gee... 28,058 Moderator on at
    RE: Canadian Payroll T4 Issues

    Bill,
    Terry Heley recently started a forum thread about the HR/Payroll SIG on GPUG Collaborate... I asked if there could be forked thread specifically on the Canadian Payroll :-) as many users had brought up issues in the community..
    http://bit.ly/1SY9nyC


    My e-mails about an open discussion with a round-table-like conference call didn't seem to got much echo..

    Another thread was started by a user regarding the frustration around CPR :
    http://bit.ly/1SY9lXx

    I hope that if we do enough noise, Microsoft may end up hearing the rumble around that module and start listening to our problems.

    Tami,
    I can feel your pain and frustration when the year-end comes towards Christmas time and everyone is eager to get the year closed and leave for vacation or a well-deserved rest for a few days.. Unfortunately the Finance people are often the ones the get in over the holidays to work and myself as a sysadmin had to rush the upgrades within 2-3 days prior to the office closing to get everything tested, updated, and deployed so that when everyone comes back in January, the whole GP is running fine :-).

    Many years back I decided to cut back the local GP clients to the strict minimum and keep only 1-2 critical workstation installed with a local setup, just in case the Terminal Server / Citrix goes south... We have about 130 GP users for 16 concurrent licenses, and I have only about 4-5 local GP setup + the server side client of course for the updates. Everyone else is accessing GP over the TS client. One location to update, and usually it's my first client that gets updated after the server is done. This is easy, since you can just disable the published app for the time being updated and run few risks of users trying to access GP.

    I don't know your configuration, but it's definitely worth looking into it.

  • DH-17091352-0 Profile Picture
    DH-17091352-0 2 on at
    RE: Canadian Payroll T4 Issues

    Unfortunately if you pay out more than one bonus in a year and the amounts cross the threshold then taxes will be under stated.  You will need to adjust these payrolls to accommodate or include bonus' in regular payroll.

    You may want to consider terminal server if you have a large number of workstations.

    Debra

  • Tami Farrelly Profile Picture
    Tami Farrelly 5,080 on at
    RE: Canadian Payroll T4 Issues

    Personally Debra..I do not see how getting an unexpected  $1500 tax bill can be considered a bonus...but hey to each their own

    I guess it all depends on the budget you are working with...and we have no interest in working in the "cloud" as if our internet goes down...so does our production

    and yes I can update from home...but I have learned from past experience that server updates should always be performed onsite....just incase

    Tami

  • DH-17091352-0 Profile Picture
    DH-17091352-0 2 on at
    RE: Canadian Payroll T4 Issues

    Hi Tami,

    Under taxing seems to be a common theme this year.  But in all my cases, it has turned out to be related to bonus'.  In particular more than one bonus in the year.

    I assume you have checked the employee's Tax Credit  window?  To ensure the amounts were updated correctly?  If they weren't check your setup window to ensure those amounts were also updated correctly.

    Regarding service packs, yes it sounds like your schedule is one of those really tight ones.  It also sounds like you might benefit from a terminal server environment?  Or maybe it is time to move to the cloud?  It would mean only two installations - server and terminal server.  You would not have to come into work as you could likely do this from home!

    Debra

    PS.  I will have to let someone else speak to Manufacturing.  

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