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userbunyanp
July 16, 2021
Question

Why does the payroll deductions online calculator on the CRA website give me a different income tax deduction amount for payroll?

  • July 16, 2021
  • 1 reply
  • 0 views
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1 reply

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Nick K
July 16, 2021

Hi userbunyanp.

 

Having the correct payroll deductions coming out when running payroll is imperative to make sure everything remains correct. I'd be happy to go over this with you. 

 

QuickBooks Online makes running payroll easy and accurate by doing the calculations for you. Every tax table update that QuickBooks Online releases comes from an algorithm that is created with the CRA. It's a bit more in-depth than the payroll calculator and takes more things into consideration. This is why it might not always match up but doesn't mean it's not correct. As long as the TD1 amounts are correct then you'll have no issues with the QuickBooks Online Payroll tax table.

 

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

    A
    Andrew C
    March 28, 2022

    Hi there,

     

    I prepare taxes for some of the employees of one of my companies. When I was compiling their taxes this year, I found all employees did not have enough deductions taken off. All of them were in a balance owing to the CRA. Can you please provide me with some insight as to why this might happen? I have spoken with a few others and they say the same thing, that Quickbooks is notorious for not taking enough deductions off.

     

    Thank you :)

      J
      Jsos
      April 4, 2024

      Did you ever find the answer to this? I also have employees saying the same thing and my tax tables are all up to date.. and some of them are even having extra tax taken off

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