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swgcc
April 6, 2020
Question

How do I set up Supplementary Unemployment Benefit Plan (SUBP)?

  • April 6, 2020
  • 2 replies
  • 0 views

How do I set up a SUBP due to COVID-19 temporary stoppage of work?  CPP and Income tax must be deducted but not EI.  

Reporting is on the employee's T4A.

Thank you. 

    2 replies

    J
    JamesM
    April 6, 2020

    Hi there,

     

    You've reached the right place for help. I'd be happy to give you a hand with setting up a Temporary Wage Subsidy in QuickBooks Desktop. 

     

    The Temporary Wage Subsidy for Employers is a three-month measure that will allow eligible employers to reduce the amount of payroll deductions required to be remitted to the Canada Revenue Agency (CRA) The following employers are eligible for it:

    • employers who are a non-profit organization, registered charity, Canadian-controlled private corporation (CCPC), partnership or sole proprietorship;
    • have an existing business number and payroll program account with the CRA on March 18, 2020; and
    • pay salary, wages, bonuses, or other remuneration to an employee.

    Note: CCPCs are only eligible for the subsidy if their taxable capital employed in Canada for the preceding taxation year, calculated on an associated group basis, is less than $15 million.

     

    The Temporary Wage Subsidy for Employers is limited to the eligible employers listed above.

     

    For more info on how to properly set this up, I encourage you to reference this helpful article here: Temporary Wage Subsidy for Employers - How to calculate and record subsidy in QuickBooks Desktop Canada. 

     

     

    In case you have other questions, feel free to contact our support team using this link here.

     

     

     

     

      L
      LStephens
      April 16, 2020

      I followed the steps provided for the 10% wage subsidy and it worked well to adjust my liability balance.  My question, how do I indicate this as income within my books.  I can't do the journal entry specified as the liability account has already been adjusted and therefore I would be adjusting twice.  I hope this makes sense.  Thank you.

      S
      swgccAuthor
      April 7, 2020

      Thank you for the response.  My question was specific to the SUBP offered through Service Canada which is different from the CEWS and the Temporary Wage Subsidy.    I was able to access the information and set up instructions via online chat.   Thanks. 

      C
      campjen15
      April 8, 2020

      Can you please share what you were told about how to set this up in quickbooks?

        S
        swgccAuthor
        April 14, 2020

        A new payroll item needs to be created as an addition.   Under lists are payroll items.  At the bottom add a new item. 

        The screens will take you through the set up.  

        Name your item ie. SUB PLAN-department x

        Expense your item to the the proper expense account. Wage account that's associated with your item. 

        ROE tracking-nothing selected as the earnings are not insurable. 

        Tax tracking type-Box 14A

        Taxes-choose Federal income tax and CPP and any others that are applicable.

        Calculate based on quantity-neither

        Default rate and limit-nothing selected. 

        Finish. 

        Go to individual employee and add this payroll item to the payroll information as an addition manually calculating the amount of the payment.  

         

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