Payroll Source Deduction - Canada CPY

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Posted on by Bill Campbell

Seems like I should know this - given I have been doing this for a really long time - but I seem to have found out I am not clear on where to enter a Reduced Tax as Source Deduction letter from the CRA. I know where to go to have more tax taken off, I know where the reference to Spousal RRSP is - but I am not certain I understand how to enter the amount.

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Employee files with CRA for a reduction in Source deduction because of a number of factors - Child Support, Spousal RRSP or other reason and the CRA grants or denies this request. If granted a letter is sent to the employee that tells the employer that the employee is allowed to have "LESS" deducted on each pay cheque.

Situation
I have employee that has filed T1213 with CRA and has been granted a reduction - in the letter (which I dont have) the amount of the CRA judgement is 15,000.

Problem
Where do I enter this amount? Do I enter as Pay Period Amount or as a single Annual Amount.

Help.

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Bill Campbell 12 on at

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Wanted to post a clip from the letter in case it assist anyone with a solution.

Thanks in advance.

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Bill Campbell 12 on at

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Anyone from the Microsoft Canadian Payroll developement group want to get into this one? We have a client that now has 3 employees with this matter and I can not stall them much longer.

Has anyone out there in Canada ever had to do this?

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Isaac Olson on at

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Hi Bill,

I am not an accountant so I am unsure what exact fields you would need to change for this specific situation, but the solution may be to adjust their Tax credit amounts on those employees. Cards >> Payroll - Canada >> Employee >> TD1 Values >> Tax Credits - then click the Update Field check box.

I hope this helps. It would be great to hear from other users, how they are handling this as well.

Thanks!

Isaac Olson

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TCJTaylor 5 on at

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Did you ever receive an answer on this question, I have the same situation and I don’t know where to put this amount to have their income tax calculate properly.

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