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O
owright
June 14, 2021
Question

Payroll liability period does not match payroll period

  • June 14, 2021
  • 1 reply
  • 0 views

Hi there,

I pay my employees per month. Pay period example could be for the month of April (1st-30th). They would receive their pay on May 3rd. I have to pay source deductions to the CRA on the 15th of May for the April 1st - 30th pay period, but QBO has it set up where that payment does not need to be made until the 15th of June.

The payroll periods are correct on the paystubs (April 1st -30th). The federal taxes payroll liability period in QBO is May 1st - May 31st, which is incorrect. This pushes the payment date to June 15th, since the liability period is one month ahead. 

How do I change the liability period to match the payroll period?

Thanks for your help in advance

1 reply

N
Nick K
June 15, 2021

Hi owright,

 

QuickBooks Online makes tracking and paying your payroll liabilities an easy task as it tracks the amounts for you automatically. I'd be happy to go over payroll liability payments with you.

 

In QuickBooks Online the way payroll liabilities payments are set up based on the payroll pay date and not the payroll schedule. If you wish to change the payroll liabilities pay date to be in may you'd need to have your pay date in April.

 

If you wish to have the ability to customize your payroll liabilities payment date in QuickBooks Online I recommend sending feedback to our developers by following these steps:

 

  1. Select the Gear icon at the top, then Feedback.
  2. Enter your comments or product suggestions. Then select Next to submit feedback.

Once the developers receive your feedback they'll look into ways to possible add it in future updates.

 

If you have any questions feel free to reach back out to us and we'd be happy to help!

O
owrightAuthor
June 15, 2021

Hi Nick,

Thanks for the reply. I'm not able to move the pay date into the same month as the pay period because the timesheets are not complete at that point. 

Is there actually no way to alter the liability period to match the payroll period without moving my pay date into the payroll period? If anyone actually follows QBO's schedule, they would be one month behind on source deductions and incur penalties from the CRA.




L
LauraAB
June 15, 2021

Hi owright,

 

I appreciate your concerns about this and would like to clarify the options in this instance. What my colleague mentioned about needing to move the pay date into the month of April if you want the remittances to be due in May is correct. This, however, is not a QuickBooks Online directive, but something directly from the CRA. This means, that you won't be late if you're following the way that QuickBooks Online is set up since it follows CRA guildelines.

 

The How and when to pay (remit) source deductions – Due date article from the CRA website goes into this at length, including giving the following Regular remitter example from the Examples of remittance due dates section.

 

Yasmina is a regular remitter. On January 1, she pays an employee for December of last year. Since she pays this remuneration in January, the CRA must receive her remittance, by February 15.

 

I encourage you to read that article to get a full scope of this information. If you have further questions or concerns about this, I recommend speaking with the CRA directly to discuss your pay periods and remittance schedules.

 

I hope this has helped!

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