CRA says I owe $367.44 due to a discrepancy in deductions. When I pay this amount how do I post it?
CRA says I owe $367.44 due to a discrepancy in deductions. When I pay this amount how do I post it?
Hi Walter:
CRA must have sent you a breakdown of CPP, EI & Income Tax amounts due to the discrepancy. CPP & EI would go to the respective CPP & EI expense accounts. For Income tax it depends upon whether you underpaid your payroll amounts due to CRA over the year compared to what has been filed on the T4's. If so it would be debited to Income Tax Payable.
Hope this answers your question!
Awesome. Thank you so much. Appreciate your help.
Awesome. Thank you so much. Appreciate your help.
Hi Walter Ramsay, if the above suggested answer helped, please do mark it as verified for the benefit of others in this forum :). Thank you!
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