How To Add A New Employee Or Update Details
What you need to know:
Employee profiles store the information required for payroll processing, records of employment, source deductions, and employee payments. While some fields are optional and can be completed at any time, required information should be entered as soon as it becomes available to ensure payroll calculations and reporting are accurate.
What you need to do:
Before creating an employee, gather the following information:
Employee first and last name
Employee number
Date of hire
Date of birth
Social Insurance Number (SIN)
Pay cycle
Vacation pay settings
Applicable pay types, benefits, and deductions
How to (Step by Step):
To create an employee profile:
Click Payroll from the left navigation menu.
Select Employees.
Click Add employee.
Enter the following required information in each tab:
Details:
Enter the employee's First Name and Last Name.
Select the employee’s Language.
Note: All other fields on the Details tab are optional, but Email is required to email pay stubs.
Tip: Be careful when entering zeros and the letter O. They are not interchangeable and can cause errors later when submitting Netfile documents.
Default Accounts:
Note: this section is only applicable to customers and suppliers.
Employment tab:
Employment information
Enter the employee Status using the drop-down menu.
Assign each employee an Employee number.
You may enter an Occupation title.
Enter the date the employee was Hired on Enter their Date of birth.
Enter their Social Insurance Number.
Note: If the employee's SIN is unavailable, you can enter 000 000 000 temporarily, ensuring the correct number is updated before issuing T4s.
For a seasonal employee, enter the Employment code.
Payroll:
Select the box if the Employee is at arm’s length or not.
Tip: The term "at arm's length" describes an employee who is not related to the business owner. The term "not at arm's length" means business owners and their immediate family.
Use the drop-down menu to choose Pay cycle. Enter the TD1 federal claim amount – click link to see the tax form for the employee.
Enter the TD1 provincial claim amount – click the link to see the tax form for the employee.
Enter Accrued advances, if necessary.
Enter Accrued vacation, if necessary.
You can enter the WCB/WSIB rate as percentage if employee has coverage.
You can enter an RPP/DPSP registration #.
Pay Types:
Click Add.
Choose the pay type(s) used for the employee.
If you need to add a new pay type, select Add new pay type and enter:
a) Name and type
b) Use the drop-down menu to select the Expense account linked to the pay type
c) Select the box for Include in vacationable earnings if this pay type will have vacation paid on it
d) Select the appropriate choice from the drop-down menu for the Include on T4 box
Click Save.
Vacation Pay:
Select the Vacation pay option using the drop-down menu:
Select the Enter vacation pay rate and use the drop-down menu to select weeks or percent.
Select an Expense account using the drop-down menu.
Click Add to enter the Vacation time for the employee, if necessary.
Tip: If the employee receives vacation immediately upon starting work, enter 0 years for the second box.
Deductions
Click Add.
Select deductions you would like set, or
Select Add new deduction to enter other deductions.
a) Enter Name
b) Enter the CRA Source using the drop-down menu
c) You can set a maximum annual contribution amount
d) Include on T4 – select box if applicable
e) Requires a remittance – toggle on or off
f) Select an Income or expense account using the drop-down menu.
Note: Typically, non-arm's length employees require Federal Tax, Provincial Tax, and C.P.P. to be deducted, while arm’s length employees also require E.I. deducted.
Click Save
Benefits
Click Add.
Select benefit from list or
Click Add new benefit
a) Enter Name.
b) Toggle ROE earnings.
c) Toggle Cash if the benefit is increasing the gross dollar amount of each cheque.
d) Toggle Taxable.
e) Use the drop-down menu to select an Expense account linked to this benefit.
f) If this benefit is to be Include[d] on T4 - select The box number from the drop-down list.
g) Use the drop-down menu to select the appropriate level of Employer offered dental benefits.
Click Save
YTD Payroll Totals tab:
This tab shows you a quick view of YTD totals for the selected employee.
References and Additional Resources
Still have questions? Contact support
Contact us at 1-800-667-7893 or email support@fccagexpert.ca if you require additional support. You can find other help options under the Question Mark Icon in the top right of AgExpert Accounting at any time.