adjusting post for payroll required

We have an employee that is approved for a housing allowance for this year.  Our first pay check did not calculate for his housing and we have issued a second check in the amount of 73.01 to cover the difference.  

I have posted the one pay check through the employees payroll module, recording taxes per CRA payroll online calculator but now I need to now post this check and I am lost.  I've tried to walk through the steps in my mind but it's just not coming together.  This 73.01 is for the CPP at 15.26 and 57.75 Income tax that were withheld on the first check.

I'm sure there was a better way to do that, but..... now I need help on posting this.  I thought I should use the GJ to post this transaction but simply can not work out how to post this so my amounts land in the right accounts and are accurately reported so the adjustment has been made to the CPP and Tax payable accounts.

Any help is always appreciated.  

Jeanne

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  • First, do NOT use the general journal, as that will not fix your employee's 2021 T4.

    Here's what I would do:

    Step 1:  Print a copy of the original (wrong) payroll statement, for your records.

    Step 2:  Completely reverse the original (wrong) paycheque.

    Step 3: Record a paycheque with the same date and net amount as the original paycheque, but with 100% of the net pay being a 'loan'.

    Step 4:  Record the 2nd paycheque, $73.01, again with 100% of net pay being a 'loan.

    Step 5:  Record the original paycheque as it SHOULD HAVE BEEN and apply your two loans against it.  Hopefully, this will bring your net pay to zero, as it sounds like the employee is already fully paid.

  • Thank you and yes the employee has been issued both payments. 

    However, I am unclear as to where to post this after I've completely reversed the orginal posting. 

    Steps 3/4 recorded through the payables module? 

    and Step 5 can be posted again through the payroll module with the account being the correct "loan" code. 

    Our accountant has set up a payroll clearing account for one employee, do you suppose I could set up a second one for this employee and post this all through that in lieu of using "loan".

    Thanks.

  • All of the steps should be done through the payroll module.  When I'm talking about a 'loan', I'm meaning the 'loans' line on the right-hand side of the Income tab when you're processing a paycheque.

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