How can I add a non-cash taxable benefit that is pensionable but not insurable using QBO Payroll in Canada?

Hi there joyhanna,

It's vital that all payroll deductions and benefits be entered correctly so that your taxes can be calculated correctly as well as your year en forms to be well balanced. QuickBooks Online Payroll is a great tool able to help you keep track of certain deductions and benefits so that you can know the total due to certain government agencies and other providers. I can provide some information about payroll benefits.

In order to add a payroll benefit, navigate to the Payroll tab, then the Employees section. Click on the name of an employee for which you'd like to have this benefit, then select Edit. Scroll down to the section titled Does [name of employee]  have any deductions or contributions? (ex. retirement, health care), then click on +Add deduction. Select the option to +Add deduction/contribution, then select the type Taxable benefits (non-cash). There will be a few different subtypes to choose from, and you need to select the one that best suits the needs of this benefit. 

The factors to consider are if it's insurable, taxable or pensionable as well as which boxes it will affect on your year-end boxes such as the T4. You can see the effect of this deduction or contribution to each of those factors by clicking on the Deduction tax settings and the Contribution tax settings. If there is nothing in the box to the right of the field, then it's not applicable, If it's pensionable, insurable or taxable, there will be a dot in the box to the right, and for the T4 or Relevé 1 forms, if it appears in the form, the number or letter of the box will be shown.

In order to know which of these boxes on the year-end forms you should affect as well as guidance in which of the choices of deduction or contribution types to choose for your benefit, I recommend reaching out to your accountant. They'll be able to specify what conditions need to be met for your benefit as well as help you choose the correct one in QuickBooks. You can invite your accountant to your books by going to the My accountant tab. In that section, you can also find an accounting professional who has experience using QuickBooks near you by clicking on the Find a pro to help button.

if you have any other questions, feel free to reach out here.