January 2018 Payroll Tax Update for Sage BusinessVision

The January 2018 Payroll Tax Updates for Sage BusinessVision 2018 and Sage BusinessVision 2017 are now available for download. If you are running a version of Sage BusinessVision earlier than version 2017, you must upgrade to the latest version to install this update.

Please note, upon installation of this update you will be prompted for a password. You will be receiving an email with the password, if you need the password immediately please email us at [email protected] along with your Sage account ID.

If you have questions regarding the status of your Payroll Update Plan, please contact Sage Customer Care at 866.725-0724, option 1. If you require assistance with installing the update, please reach out to your Sage Business Partner or if you have a current Support Plan - contact Sage Customer Support:

Year-end FAQ: FAQ
Chat: Chat Now
Sage City: Sage BusinessVision Community
Email: mailto:[email protected]
Tel: 800.215.5395

Changes reflected in the January 2018 Payroll Update

The January 2018 tax update contains modifications to payroll tax tables and calculations that are used by Sage BusinessVision. These modifications reflect the income tax changes announced by the Canada Revenue Agency (CRA) that are effective January 1, 2018.

Basic Personal Amounts for 2018

Federal  $11,809
Alberta $18,915
British Columbia $10,412
Manitoba $9,382
Newfoundland and Labrador $9,247
Northwest Territories $14,492
Nunavut $13,325
Ontario $10,354
Prince Edward Island $8,160
Quebec $15,012
Saskatchewan $16,065
Yukon $11,809

Note regarding basic personal amounts for employees in Nova Scotia

Beginning with the 2018 taxation year, the basic personal amount will increase by $3,000 from $8,481 to $11,481. The full $3,000 increase will be available to individuals who have taxable income of $25,000 or less. The $3,000 increase will be reduced by 6% of taxable income that is more than $25,000. Individuals who have taxable income of $75,000 or more will not receive any increase. Please be sure to review TD1 amounts for employees in Nova Scotia after performing step 3 as listed above in “How to perform your payroll year end”.

Changes to the Canadian Pension Plan

For 2018, the maximum pensionable earnings for the Canada Pension Plan (CPP) has increased to $55,900.00. The maximum CPP employer and employee contribution to the plan for 2018 will be $2,593.80.

Changes to Employment Insurance

For 2018, Employment Insurance (EI) premium rates have increased for both Quebec and provinces and territories outside of Quebec. Outside Quebec, premium rates will be 1.66% and the annual maximum insurable earnings (MIE) will be $51,700. In Quebec, EI premium rates have increased to 1.30% and the MIE will be $51,700.

Changes to the Quebec Parental Insurance Plan

For 2018, the maximum Quebec Parental Insurance Plan (QPIP) insurable earnings amount has been increased to $74,000. The QPIP employee premium rate remains at 0.548% and the QPIP employer premium rate remains 0.767%.

Changes to the Quebec Pension Plan

For 2018, the maximum pensionable earnings for the Quebec Pension Plan (QPP) has increased to $55,900. The maximum QPP employer and employee contribution to the plan will be $2,829.60, with the employee and employer each contributing 5.4%.

To find out more about all the tax changes, or to obtain any updated TD1 forms for January 2018, please contact your tax consultant or government tax offices. You can also visit the CRA Web site. http://www.cra-arc.gc.ca

T4 and T4 Summary forms

All necessary changes to T4 and T4 Summary forms are included in this update.

RL-1 forms

The Sage BusinessVision January 2018 payroll tax update does not include the ability to print form RL-1 to paper, but instead includes an RL-1 worksheet that Quebec employers can use to complete RL-1 forms for their employees via the Clic Revenu service. See http://www.revenuquebec.ca for details.

How to Download

You must log into the Knowledge Base to download the updates.

  1. Navigate to the Sage Knowledge Base located at https://support.na.sage.com.
  2. Click Logon located at the top right to log into the Knowledge Base.
  3. For Sage BusinessVision version 2018 search for article number 87928 and for Sage BusinessVision 2017 search for article number 87929.
  4. Click Download Now or Direct Download to begin. It is very important that you read the instructions before installing the update.

How to update your payroll tables

Although the update does not affect your data files, we strongly suggest that you make a back-up copy of your data files regularly and before any updates for your protection. Network users should ensure they are the only users on the system when performing this update or while making back-ups.

You can verify that the Sage BusinessVision Payroll Update has been implemented by reading the tax table date available in System Info. From the “Help” menu, choose “About Sage BusinessVision” and then click on the “System Info” button. The “Tables” date should be “Jan 2018”.

  1. Make a complete back-up of all data files.
  2. Double click the payroll update executable package to begin.
  3. When prompted, enter the password to install the BusinessVision payroll update and click the “Next” button.
  4. On the Welcome dialog, click the “Next” button, and then click the “Yes” button to make changes to the Sage BusinessVision program directory. The update will run automatically and will only take a few minutes.
  5. Click the “OK” button to confirm that the installation is complete. If you are prompted to reboot your computer, do so before running Sage BusinessVision.
  6. Sign-on to Sage BusinessVision and from the “Help” menu, choose “About Sage BusinessVision” and then click on the “System Info” button. The “Tables” date should be “Jan 2018”.

Note: This update must be performed on all workstations running Sage BusinessVision.

How to perform your payroll year end

The Payroll Update should be installed before performing a Payroll Year End.

  1. From the “Utilities” menu, choose “Payroll Setup > Payroll Year End”. (If this option appears disabled (grey), then the option has been denied for the current user. A user with access to Payroll Year End is required in order to perform this function). DO NOT confuse a Payroll Year End with your fiscal year-end. A Payroll Year End is performed at the end of each calendar year, and is not related to your fiscal periods or fiscal year-end.
  2. Choose whether to delete historical timecard details (the default is to retain all timecard details). For historical purposes, a minimum of two years of timecard detail should be retained. Click OK to continue with the Payroll Year End process. Do not run the Payroll Year End process more than once.
  3. Perform the TD1 Revision function that automatically adjusts the tax credit amounts for every employee. From the “Utilities” menu, choose “Payroll Setup > TD1 Revisions”. Ensure that the indexation factor is 1.015, then click the “OK” button. The system will make the necessary adjustments. This process will also automatically update certain Provincial Claim amounts. Do not run the TD1 revision process more than once.
  4. After the Payroll Year End process is completed, you can check the results from within the Payroll module. With any active employee’s details loaded, click the “Earnings” tab to display year-to-date earnings. Last year’s year-to-date earnings should be displayed in the “Last Year” column. This information is used for the production of T4’s (and Releve-1 Worksheet values for Quebec). The “This Year” column should appear empty, as no paycheques for 2018 have been produced.
  5. Check each employee profile to confirm that the appropriate tax credit amount has been correctly adjusted, and that the correct value appears in the field for Provincial Credits.

Frequently Asked Questions Regarding Payroll

Q: When should I install my Payroll Update?
A: Before your first payroll run in January 2018, even though you may be paying employees for time worked in December 2017.
Q: What should I do if I didn't get the update installed before the first pay period in January 2018?
A: Install the update before the second pay period in January or as soon as possible. Take no other action – any discrepancies will be straightened out when your employees file their 2018 tax return.
Q: I sometimes notice differences between the taxes calculated by Sage BusinessVision and the taxes I calculate using the manual tax tables. Why is this, and which figure is correct?
A: The Sage BusinessVision calculations are correct because they use exact formulas outlined in the tax laws, and published in CRA Publication T4127 107th edition. Manual tables estimate tax deductions for a salary range, while the Sage BusinessVision formulas work with fractions of a cent. Also, manual tables ignore certain provincial allowances and deductions.