Donation deduction from employee payroll

You can access your employee's page and choose Deductions & Contributions to effectively set up the donation deduction from their paycheque, Benson. I’ll provide more details below.

To set up deductions, please refer to these steps:

1. Go to the Payroll menu, then Employees.
2. Select your specific employee.
3. From Deductions & contributions, click Start or Edit.
4. Select + Add deduction/contribution.
   
   
    
5. From the Deduction/contribution dropdown, hit + Add deduction/contribution.
6. From the Deduction/contribution type, choose Other Deduction.
7. From the Type, select Charitable Donation.
8. Add a Description. This is the deduction or plan name, which appears on paycheques.
9. Under the Employee deduction section, choose how your deduction is calculated. Then enter the amount or percentage.
10. Press Save, then Done.
    
    

Regarding your second concern about how to show the donation deduction and have it recorded on their T4 slips.

Here's how:

1. Navigate to the Payroll menu and select Payroll tax.
2. Select the Fillings tab under Payroll Tax Centre.
3. Under T4 Employee Slips, select Preview to check the donation deduction which is located in box 46.
   
   

Regarding your third concern about whether this deduction will appear on your financial statement: yes, it will show up. You can generate a Balance Sheet report by ensuring that you set the report period accurately. The deduction will be listed under Payroll Liabilities.

In the Profit & Loss report, the accounts displayed will include Taxes and Wages, which fall under Payroll Expenses. This section will show the total amount of employees' taxes and wages, but it will not provide a detailed breakdown of the donation deductions. However, it is important to note that the deduction is still included in the employees' total paycheques.


 

Moreover, you can refer to this article for comprehensive guidance on the payroll item management tool. This allows you to efficiently view, edit, and remove pay items for employees, empowering you to manage pay types, deductions, and contributions all from one centralized location.

I'm still here to provide you with any additional support you may need regarding payroll. Don't hesitate to reach out if you have questions or need assistance. I'll keep this thread open so you can easily share your thoughts or inquiries.