Chapter 7, Before Moving On - Sage 50

Question 1

Briefly describe how the Sage 50 Accounting EMPLOYEE & PAYROLL module works:

• its purpose
• the records or forms it can automatically produce
• built-in tables & formulas

Answer 1

The purpose of the EMPLOYEES & PAYROLL module is to record employee payroll cheques including gross pay, calculate deductions and net pay for each pay period in a calendar year. The statutory government deductions (EI, CPP and Federal Income tax) for employees are automatically calculated based on the employee’s gross pay and claimed personal tax credits. Sage 50 Accounting can print various payroll summary and/or detail reports and regular computer generated payroll cheques, with employee information stubs. At the end of the calendar year, payroll T4 slips can be printed.

The current period tax tables and formulas are part of the EMPLOYEES & PAYROLL module and are updated by Sage 50 Accounting on a regular basis. Payroll tax updates and software upgrades are provided by Sage 50 Accounting, if the user joins the “Sage 50 Business 50 Care” plan and pays an annual subscription fee.

Question 2

After entering the employee payroll for January 2025, the total of year-to-date employees’ gross pay plus vacation pay owed must equal the balance of which G/L accounts?

Answer 2

The total of the year-to-date employee gross pay plus vacation pay must be equal to the balance of the Wages, Salary and Commission Expense accounts.

Question 3

Why is the session date particularly important to consider when processing in the Sage 50 Accounting PAYROLL module?

If you set a particular session date, what restrictions are set by Sage 50 Accounting?

Answer 3

The Session Date is the date that will be used when posting Payroll entries to the General Ledger, unless you change the Cheque Date. If the Cheque Date is changed to an earlier date, the posting date will be the Cheque date. It is possible to back-date payroll cheques, but the EMPLOYUEES & PAYROLL module will use the Cheque date and the General Ledger will post with the Cheque Date.

Question 4

Why is it particularly important to back up your data before printing Tax slips for employees and/or CRA at December 31?

Answer 4

It is important to backup your data before printing T4 slips at December 31, the end of the calendar year. It is quite common to make errors in payroll information and the T4 slips will need to be changed and printed again. A backup device will allow you to make changes and print T4 slips again.

Question 5

What is the procedure for correcting an error in posting a paycheque in the PAYROLL module?

Answer 5

To correct an error in posting a paycheque.

a) Open the Paycheques window and follow Exercise 7-16a (reverse paycheque) and 7-16b (issue new correct paycheque); however, this will only work if the paycheque being corrected is from a recent paycheque date (e.g., Jan 24) and not a prior pay period (e.g., Jan 10).
b) You could also open the Paycheques window and use the Adjust Paycheque icon. Record the correct information. Method
a) is the preferred method to correct a paycheque.

Question 6

Making payments to the Receiver General for payroll amounts can be speeded up by using:

Answer 6

Pay Remittance Selection