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July 14, 2020
Question

Statutory Holiday Pay

  • July 14, 2020
  • 1 reply
  • 0 views

I just noticed that Statutory Holiday Pay is not taking deductions off.  All of the proper CPP, EI, Federal tax buttons are clicked.  This is the Statutory Holiday Pay set up in the Additions portion in Payroll.  Has anyone else encountered this too and how did you fix?

1 reply

July 14, 2020

Hi Debra65,

 

Having the correct taxes deducted when running payroll is important to make sure your Payroll Liabilities account is correct. I'd be happy to go over how to set up taxes on your payroll items.

 

If the taxes are turned on for that employee and are not deducted on the payroll it's usually due to the actual Payroll Item itself. As statutory holiday pay isn't an item that is created automatically through QuickBooks Desktop it's possible the taxes were not set up correctly. To access your payroll item list you'll need to go to Lists>Payroll Item List. Once you're in the Payroll Item List you'll need to find your statutory holiday pay item and double click it. From there click next till you get to the taxes page and make sure everything that is taxed has a check mark beside it.

 

Once the taxes are checked you will be able to run payroll again and the taxes will be deducted from the paycheque like normal.

 

Hope that was able to help

Debra65Author
July 14, 2020

As mentioned in the problem, the taxes are set up but they are not calculating.  I've double, triple-checked this and tried different employees; the taxes are not affected when I add in Statutory Holiday Pay.

Debra65Author
July 14, 2020

Just ignore the problem - it works if I go under the Earnings portion, instead of Other Payroll Items so I'll do Stat Pay through there.