The regular payment of taxes is not only a liability of employees but their responsibility as well.
Handling Tax Liabilities in Sage 50:
Every organization has a complex structure, which is handled by multiple numbers of employees. The number of employees always means a more advanced payroll system. Sage 50 software solutions come with the most advanced payroll system with tax deduction feature already inculcated in it.
In Sage 50, the automatic payroll system enables users to have their tax proportion automatically deducted, thereby making them a responsible citizen. Though there are simplified ways of calculating the pay through software solutions, many issues still persist because of incorrect settings. When you have tax liabilities to fulfill, you must be careful enough to see the with-holdings for company-paid taxes on prior paychecks at Sage 50.
The tax issue in Sage 50 arises mainly because of two reasons. One can be the incorrect adjustments while the other can be the lack of ability of the system to adapt to the changes made. Both of them are observed to affect the company-paid tax management equally. Given to the frequent problems relating to the with-holdings for company-paid taxes on prior paychecks, there are two stages of solutions offered – setting taxes for automatic calculation and fixing the errors by changing the settings or adjustments.
When it comes to fixing incorrect with-holdings for company-paid taxes on prior paychecks in Sage 50, the solution is divided into two distinct stages:
The first stage is concerned with setting the taxes for automatic calculation of taxes. To do this, you can:
1. Open the Paychecks journal.
2. Follow the normal steps to create a paycheck.
3. Enter the amounts to be earned.
4. Click Taxes tab.
5. See if the EI and CPP tax boxes are white or grey. If Grey, the automatic calculations are on. On the other hand, if it’s White, the manual calculation is still on in Sage 50.
6. To change the White color to Grey, select the Calculate Taxes Automatically icon present on the toolbar.
The second stage is concerned with adjusting the fields to fix incorrect with-holdings for company-paid taxes on prior paychecks at Sage 50. This is opted when users have already verified Stage 1. The need for adjustments arises when users find that the changes made for proper tax handling have not been reflected in the system. To adjust the fields to proceed with the second state of the solution, you need to:
1. Select Lists, Employees & Payroll, Paychecks.
2. Open the paycheck to be edited. To do this, find the option and double-click the same.
3. Make relevant adjustments.
4. Click Save.
Note: The adjustments that you make in the second stage of the solution will not affect the net amount mentioned in the respective paychecks.
Will Editing Adjustment Help in Sage 50?
Your employee paycheck is open to editing until it has been issued. Thus, fixing the incorrect with-holdings is only meant for prior paychecks in Sage 50. The above-mentioned steps and stages of the solution will surely help you to get rid of any kind of problem that arises at any point of time.