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K
KL20
April 30, 2020
Question

the 10% wage subsidy payroll tax adjustments are not affecting the source deductions report on Standard QB online

  • April 30, 2020
  • 1 reply
  • 0 views

My source deductions report PD7A is not reflecting the adjustment done to the income tax liability for this 10% wage subsidy period.  What step am I missing?  The help so far is for desktop and I use Standard QB online.

1 reply

R
Rochelley
April 30, 2020

Hello @KL20 ,

 

This link explains how to accomplish this in QBO:

 

https://quickbooks.intuit.com/learn-support/en-ca/covid-19/temporary-wage-subsidy-for-employers/01/516529#M66

 

Good luck!

 

 

K
KL20Author
April 30, 2020

These steps do not seem to update the PD7A report with the reduced income tax due.   In the Federal Tax Report there are two reports... one is the "paid 10% subsidy" that will be adjusted in the Journal Entry as recorded as income.  The other report for the same date reflects the balance of the income tax that will be remitted.  However, because there was no negative amount entered in the income tax the PD7A still views the full amount as being remitted.  

R
Rochelley
April 30, 2020

Hello @,

 

The tax should be reduced by the amount you recorded as a prior tax payment in Step 2.  The only way your tax wouldn't be reduced on the final PD7A is if the prior tax payment was entered with an incorrect period start date, end date or payment date . . . it must match whatever dates are covered by the PD7A, as in the example.  This is a bit of hoop jumping because there is no other way to get the payment reduced in QBO.

 

The actual Federal Taxes liability account won't be reduced until you make the JE.

 

I've followed through with all the steps and after entering the prior tax payment in Step 2, when I click on the 'Pay Taxes' button, the amount showing as the payment amount has been reduced by the Subsidy amount entered in Step 2.  If I click on my Federal Taxes report, it also shows that Federal Tax has been reduced by the subsidy amount.  If I record the payment, it is that reduced payment that will go to the CRA.

 

I'm sorry you're having trouble . . . maybe go back and make sure you've done the prior tax payment correctly . . . that may solve it for you.

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