Historic Payroll and owner (self incorporated) expenses that have already been paid

lucki

Hi I wonder if someone can help.
I've been using wave for a couple of months as a self incorporated business in Alberta, Canada.
What I have been doing is paying myself $2k/bi monthly. Now I have offset a lot of this as operating expenses using CRA mileage etc. Now I have the remainder to offset. I havn't used the payroll part of wave yet, I've started to but was wondering how to do historic payroll bearing in mind that in the payroll it wants to just know the historic amounts of amount paid and taxes etc.
i can find that out using CRA's Payroll Deductions Online Calculator, but how do I do these transactions in Wave. The transactions that have already been done I can work out CPP/EI etc, although I also need how to reflect that payroll is owing because I can't get the net amount to quite equal $2,000 on CRA's Payroll Deductions Online Calculator yet! But how do I show these expenses in wave. The payroll plugin will do it automatically for new payroll but how do I do it for old?
i imagine I have to do manual expenses to pre-existing payrol accounts but I'm not too sure.

Thank you to anyone who helps, this is confusing me just a little bit.

Alexia

Hi, @lucki,

How are you liking Payroll by Wave so far?

For past payroll transactions, you'll have to use journal entries that debit and credit the appropriate accounts, depending on the case. The different amounts you owe for payroll taxes will be credited to various liability accounts. The journal entries for payroll should look something like this:

Recording what you owe after payroll

• Debit the "Gross Wages" expense account for $2,000
• Credit the appropriate liability accounts for payroll taxes you owe
• Credit the "Wages payable" liability account for the rest

Paying yourself

• Debit "Wages payable" for the amount you're actually paying yourself
• Credit your bank account for the same amount

Paying all those taxes

• Debit the liability accounts that you're paying off by the amount you're paying for each
• Credit your bank account for the total of those debits.

In short, you are on the right path, those transactions will have to be handled by hand. If you haven't used journal entries before, you can find them by clicking on "More" in the top-right corner of the Accounting page and go to "Add Journal Transactions".

I hope this helps! Let me know if you have questions!