The taxes to which calculations are subject vary by province or territory. Verify the selections with your accountant, or if it is a benefit, the benefit plan administrator.
Caution! Verify that all your calculations are correct before running a trial-compute of your payroll. If you are unsure about the results, contact Customer Support or your business partner for assistance.
To set up payroll calculations 1. Open 5-3-1 Payroll Calculations.
2. In the data control box, enter the number you want to assign the new calculation.
3. In the Description box, enter a brief statement about the calculation.
4. In the Tax Type list, click the type of earning, accrual, or deduction that you are setting up.
5. Depending on the tax type you selected, make additional selections as required for:
Payroll Calculations
l Calculation Type. If you selected None as the Tax Type, you need to specify the type of earning, accrual, or deduction.
l Calculation Method. This list is available if you selected None or 19 - Employee
RPP Contributions as the Tax Type. Click the method to use to compute the earning, accrual, or deduction,
l Based On. This list is available if you selected None as the Tax Type and 7 - %Other Calculation for the Calculation Method. Click the type of amount on which to base the payroll calculation.
l Default Rate.Enter the standard calculation rate.
Important! When you use calculation method 17-Tables for federal or provincial income taxes, Sage 100 Contractor sets the rate. The rate does not appear in the payroll calculation or the employee record.
l Default Max. Enter the calculation maximum.
l Max Type. Click the type of maximum for the calculation.
Note: If you plan to set maximum wages for workers' compensation codes for states other than Ohio, New York, and Nevada, you must select 4-Wages/Year.
6. Specify the accounts that will be affected by this payroll calculation:
a. In the Job Expense, Shop Expense, Overhead Expense, and Admin Expense boxes, enter the ledger account numbers to debit for each type of expense.
b. In the Credit Account box, enter the liability account number to credit.
c. In the Credit Subaccount box, enter the ledger subaccount number to credit.
Note: If you want to use the employee number as the subsidiary account number, click Use employee# as subaccount.
Important! The Credit Account and Credit Subaccount are typically liability accounts. You must specify a Credit Account, but a Credit Subaccount is only necessary dependent upon your general ledger setup.
7. Under Subject to, verify the deductions to which the calculation is subject.
8. In the Tax Area, if the calculation is for a specific province, enter the province abbreviation in the Tax Province box.
Payroll Calculations
9. Under Reporting:
a. To include the calculation on a union report, select the union from the Union list.
b. To include the payroll calculation on certified payroll reports, select the type of benefit in the Benefit list.
c. To report the calculation total in a box on T4 slips, enter the box number in the T4 Box field.
d. To exclude the calculation from T-4 slips, select the Exclude from T4 slips box.
10. Select the following check boxes that apply to the payroll calculation:
l Use in Paygroup Benefits
l Display on Cheque
l Disposable Earnings
l Default to New Employees 11. Click File > Save.
About calculations in employee records
When setting up a new employee record, Sage 100 Contractor inserts the package of default payroll calculations, including the calculation rates and maximums, on the Calculations tab. Each employee record has its own set of payroll calculation rates, maximums, and totals. You can edit the calculation rates and maximums in one employee record without affecting others. When you compute payroll, Sage 100 Contractor reads the calculation rates and maximums from the Calculations tab.
Before editing the individual calculation rates and maximums, familiarize yourself with how payroll calculations are set up. Most calculations that refer to tax tables do not allow editing. Sage 100 Contractor determines the tax table number, but does not display the data in the Calculations tab.
You can manage the TD1 Claim Codes for federal and provincial tax calculations. For example, Steve works in Manitoba. Steve claims Code 7 for federal, but for Manitoba, he claims Code 9. In the TD1 Claim Code column, you can enter the appropriate TD1 claim code for the federal and provincial calculations.
You can also control whether a payroll calculation is active or inactive. When you type No in the Active cell for a calculation, Sage 100 Contractor does not include that payroll calculation in the compute for timecards. For example, John was given a $500 payroll advance, and the Payroll Advances calculation in John’s employee record was set up to recover $100 per pay cheque. But John has said that the next few weeks are difficult and that he would like to suspend the repayment for a little while. In John’s employee record, type No in the Active cell of the Payroll Advance calculation. When you are ready to resume recovering the advance, type Yes in the Active cell of the Payroll Advance calculation.
Payroll Calculations