Hi Deborah:

Your best bet is to create a new income for box 32 for each affected employee. Once done, create a paycheque for each employee affected with the new benefit, put in the benefit amount, the cheque should be a nil balance unless there are tax consequences which haven't been taken into consideration already. Date it for December 31, 2022 and post. You will have to manually calculate any taxes and of course pay any remittances due. You should now have box 32 show up when doing the T4's. Good luck!

Thank-you Agate,  sooo close :)

1.  Created a Box 32 Income item, (Company/settings/Payroll/Income) then I made sure to assigned to all employees in their individual records, so I get the Box 32 option when I create the cheques.

2.  Did a payroll run dated Dec 31, 2022.  All the pay cheques were created  and I entered only the NTA amount in the income Box 32, looking good   

3.  Ran the T4 & Summary report from Sage,  more happiness,

4.   less happy when I note the amounts are being added to the Gross Pay.  

5.  This does make sense as it is being recorded as income on the payrun,  I think? I need a user-defined account to enter the gross pay offset to the Northern Travel Allowance?  I have used all 5 of the user-defined options available in Sage already.

I have to finish this today, feeling the pressure, lol.  I appreciate your response and it is almost working, one step at a time.  

Deborah

Deborah:

Taxable benefits are always added to income, you will need to add this on their regular pays during the year. You shouldn't need to use the 5 user defined expense fields if that is what you are referring to. You should have about 17 useable income fields. You should be able to create the .xml file to file electronically using Sage for the last step. Hope this helps!

Agate, 

I'm really confused now, Box 32 NTA has already been taxed b/c the amount to be designated to Box 32 is determined from the gross pay total at the end of the year.  As a new Sage user & I didn't know I had to give it it's own separate income, mostly because this NTA amount means nothing to the company financially, it's all a CRA-Employee thing.

The Sage set-up looks like we're expected to account for it on every payroll run?  I started with this company in October 2022. I did end up setting up other additions or deductions for them and re-doing the whole payroll but I didn't even think about NTA in Box 32. I've always just considered it a once a year entry added to the T4 easy peasy  silly me.

Always a learning process and I am new to Sage, next year is going to be much better.

I think I'm hooped for 2022, I'll have to do a paper filing as I'm out of time. 

Thank you for responding though, I am now set-up for 2023, I feel like it makes a very simple process a little more complicated than necessary, probably just me!   I do know sometimes there is a lot of confusion around this benefit for northerners.