How do I properly record the CEWS wage subsidy deposit in Quickbooks?

Hi there,

Making sure the Wage Subsidy is recorded properly is a good way to prevent errors in your books. 

QuickBooks is easy to navigate and this makes it easy to record the Wage Subsidy. I encourage you to check out this helpful article here: Temporary Wage Subsidy for Employers (10%). The article goes over the key steps which show you how to properly record the subsidy in your books. 

If you need further assistance I also recommend contacting an accounting professional for clarification. If you're not in contact with one, I encourage you to search for one on our website using this link here. Doing this will help prevent any future discrepancies. 

Let me know if you need anything else by leaving a comment below. I'll be one message away. :)

Hi All,

You should create a new account called  "Other Income - Canadian Emergency Wage Subsidy" and post it there. You should also have an account called "Other Income - Temporary Wage Subsidy" for that subsidy, as they are different programs and should be recorded separately. Both subsidies are taxable income. Be careful with the Temporary Wage Subsidy amount as you need to be deducting that from your CRA Payroll Source Deductions payment. You'll need to record an adjusting journal entry to reduce the PD7A payment in your Payroll Taxes module as it won't match up with what comes out of your bank account. Then you can match the reduced Source Deductions payment to your Journal Entry. The CEWS amount is not a deduction of any kind, it's going to come into your bank and should be posted directly to other income. 

QuickBooks employees are not accountants or bookkeepers and shouldn't be expected to understand what is essentially an accounting theory question.

Best Regards,

Alicia Loewen, Owner

Deximal Accounting Inc.

As mentioned below:

Hi All,

You should create a new account called  "Other Income - Canadian Emergency Wage Subsidy" and post it there. You should also have an account called "Other Income - Temporary Wage Subsidy" for that subsidy, as they are different programs and should be recorded separately. Both subsidies are taxable income. Be careful with the Temporary Wage Subsidy amount as you need to be deducting that from your CRA Payroll Source Deductions payment. You'll need to record an adjusting journal entry to reduce the PD7A payment in your Payroll Taxes module as it won't match up with what comes out of your bank account. Then you can match the reduced Source Deductions payment to your Journal Entry. The CEWS amount is not a deduction of any kind, it's going to come into your bank and should be posted directly to other income. 

This income is considered extraordinary income and is not included in the calculation when comparing revenue year-over-year, etc. when calculating your benefit %.

Pat