Background

This support article explains the possible reasons for payroll taxes, deductions, or expenses not being calculated (or not being calculated properly) for an employee. When possible, it also includes suggestions for resolving calculation issues.

Taxes, Deductions, or Expenses Not Being Calculated At All

There are several possible causes for taxes not being calculated when running a paycheque for an employee. The most common reasons include:

• Employee or Wage is Exempt
• The Maximum Amount That Needs To Be Taken Out Has Been Reached
• (Windows Only) Permission or User Access Problem

Employee or Wage is Exempt 

You can choose to mark either an employee or a wage (or both) as Exempt from specific taxes and deductions. If this was done (and shouldn't have been) you can correct this by editing that wage or employee card. Please note that this will only effect paycheques going forward. If you are going to delete and recreate any cheques you should leave them as exempt when you delete the paycheques and then remove the exempt status afterwards (before you recreate the cheques).

Employee 
You can choose whether or not a tax, deduction, or expense applies to a particular employee in that employee's card. To do this:

1. Go to Lists > Cards from the menu bar at the top of the screen
2. Click on the arrow/double arrow next to the employee in question
3. Click on the Payroll Details tab
4. Along the left hand side click on Taxes, Employer Expenses, or Deductions (whichever type is not calculating for that Employee)
5. Make sure that there is a check mark next to the Tax, Expense, or Deduction name
6. Click OK

Wage 
You can choose whether a particular Wage is exempt from any tax, deduction, or expense. To do this:

1. Go to Lists > Payroll Categories > Wages from the menu bar at the top of the screen
2. Click on the arrow/double arrow next to the Wage in question
3. Click on the Exempt button at the bottom of the Wage
4. Make sure that any Tax, Deduction, or Expense that should apply to this Wage are not checked
5. Click OK and then OK again to close out of the Wage

The Maximum Amount That Needs to Be Taken Out Has Been Reached 
If you've reached a deduction, expense, or tax limit the software will (and should) stop calculating. As a note, the limits are based not on the actual dollar figure of a Wage but instead are a calculation based on the Wage Limit multiplied by the Rate. This means, that if your Rate increased mid-year, the software will continue to calculate until the full amount is deducted/taxed/expensed.

As an example, if I have an expense category Wage Limit of $32,000 dollars and the expense percentage is 3%, the expense limit is calculated by multiplying 32000 by .03 and equals $960.00. So even if I have made $32,000 dollars already it will continue to calculate until that $960.00 is expensed.

(Windows Only) Permission or User Access Problems 
It's possible for taxes not to calculate at all if the software doesn't have the appropriate permission levels to access the files it needs.

This can often be resolved by speaking to an IT professional and have them set appropriate permissions on the Application and the folder that the Application is in (normally C:\AccountEdgePro[Year]).

You can also attempt to uninstall the software and then reinstall it to a folder on the Desktop. You can do this by:

1. Follow the instructions for uninstalling the software
2. Create a folder on the desktop called AccountEdge
3. Reinstall the software but when it lists the Application path choose the folder on your Desktop

Incorrect Tax, Expense, or Deduction is Being Calculated

There are also several possible causes for taxes not being calculated properly or not taking out expected amounts when running a paycheque for an employee. The most common reasons include:

• Outdated Tax Tables
• Numbers Are Being Adjusted to Make Up for Earlier Calculations
• Net Claim Amount is Improperly Set

Outdated Tax Tables 
AccountEdge offers Payroll Tax Service for those customers who use AccountEdge to calculate and process their payroll cheques. People who sign up for this tax service need to be on the latest version of the software and need to go through the process of loading payroll tax tables.

If you do not load these tax tables the calculations in the software will be incorrect.

Numbers Are Being Adjusted to Make Up for Earlier Calculations 
If you did load your tax tables, but loaded them later in the year, AccountEdge will need to make up for previous calculations. This means that you may see that higher amounts are taken out of employees paycheques as it needs to account for the difference. This is correct as the employee will actually owe the additional money to the government.

Net Claim Amount is Improperly Set 
When you set up Employee cards you can choose the Net Claim amount that they should have taxes taken out at. If you are attempting to compare a payroll versus the CRA calculator this is most often the cause for discrepancy.

You can change/verify the net claim amount by:

1. Go to Lists > Cards from the menu bar at the top of the screen
2. Click on the arrow/double arrow next to the Employee in question
3. Click on the Payroll Details tab
4. Click on Taxes along the left hand side of the card
5. Verify that the Net Claim amount is properly set. The latest version of AccountEdge has an option for using the Basic Personal claim (Claim Code 1)