Balancing RL-1

1. Generate the t4 slip Compare with what’s reported in Box 16.

If you have under/over remitted any of the source deductions, you can adjust them using a zero-income paycheque and manually correct the deduction.

Please refer to https://community.fccsoftware.ca/payroll-aa/t4s/balancing-your-t4-report.html to complete the process.

To generate the T4s, go to Payroll - Employees. 

Select the Employee, and click Annual tax forms and Canada Revenue Agency.

Select the filing method as Paper, keep the pre-selected forms and Click Continue

Download the T4 Slip

Open downloaded pdf form

2. Start looking at your T4 slip, with Box 17 and 17A  (QPP and QPP2 Contributions )

• For 2024:
  • QPP: (Box 14 – $3,500) × 6.4%
  • QPP2: (Earnings over $68,500 up to $73,200) × 4% (max $188)
  • QPIP (The Québec Parental Insurance Plan – RQAP in French) Use the current rate found on the RQAP website

Calculate expected QPP and QPP2 using the formula above.

In the example above, we will do this calculation: 

($95394.80- $3,500.00) *6.4% = $5881.22 (rounded to the nearest cent) 

According to the calculation, we have under deducted QPP for this employee.  An adjustment will need to be made to make sure the QPP contribution is correct.  

To do this, go to Payroll > Create Paycheques. Zero out all of the income and in the Review section, click on QPP.  This will open your deductions screen.  We want to enter how much we want to change the T4 summary by.  In our case, that will be $1721.22 (5881.22 -4160).  To offset this, enter the opposite amount into the Federal Tax field.  In this case, since the QPP is positive, the federal tax will be negative.

Save the deduction screen, and make sure that the net pay still shows $0.00.  Click on Save. 

Last updated on July 10, 2025 by FCC AgExpert