Setting up Source Deductions

By default, all the standard source deductions are set up in AgExpert Accounting.  However, if you migrated a data file from AgExpert Analyst where the source deductions were deleted, Accounting will not set them up for you, and you must set them up yourself.

On the left navigation bar, click Chart of accounts.

Filter your chart of accounts by Liability. 

You will need to set up accounts for EI Payable, CPP Payable, and Taxes Payable.

Filter you chart of accounts by Expense.

You will need to set up accounts for EI – Employer Expense and CPP – Employer Expense.

Click Payroll on the left navigation bar, and select Employees.

When setting up your employee, click Add in the Deductions section of the Employment tab.

At the bottom of the deduction list, click Add new deduction.

The setup for source deductions is prescribed and should not be changed at any point.  This will ensure that correct calculations are done for both the employee and employer portions.  The setup for each deduction is as follows:

CPP (Canada Pension Plan)

EI (Employment Insurance)

Federal Tax

Provincial Tax

When you select the CRA source, you only have to tell the system the liability account and expense account needed to track these items.  All rates and calculations are done internally, as prescribed by CRA.

Once saved, the deductions will be ready for you to use on your current employee, and any future employees you set up.

Last updated on December 8, 2020 by FCC AgExpert