Adjusting for overpaid (CPP/EI/Fed/Prov) deductions on payroll
flappyfish
Member Posts: 2
We started on wave payroll midway through the year. Despite importing our previous months numbers before starting our first payroll on wave, it seems like wave payroll doesn't adjust for changes to salaries correctly going forward. It merely calculates the monthly totals for new salary figures as if it were salary/12.
Support has confirmed this.
We're trying to make manual gross top-ups, but when we do that, the CPP/EI/ and fed/prov taxes are calculated incorrectly. We know the exact figures that we should actually be deducting, but can't seem to reduce the deduction amounts on the payroll stub.
A feature that allows adjusting taxes manually, similar to adding or deducting from wage, would fix this.
Is there any other way to handle for this? I suspect the T4's will be extremely inaccurate as a result of this.
Comments
Hey @flappyfish, thanks for reaching out. I can see that you've had a conversation with one of our payroll specialists, Jeremy, in a chat today. I'm glad you two were able to discuss this in depth in order to come to a resolution.
So what did you have to do to fix the overpayment of payroll taxes at year end
The CPP/EI has to be left in as overpayments, so that the T4 can be generated correctly. There's no way to even manually adjust a ledger so that your total company contributions are correct by year end.
I spent about an hour on the chat with wave payroll.
As for income tax, they have an algorithm that calculates to the best of their ability - but always overestimating - which also can't be adjusted manually. I will have to re-import my payroll history again, and then do a manual gross top-up, to see if the algorithm comes back with a more reasonable estimate. Otherwise, I'm overpaying by thousands of dollars if I allow wave to do the calculations.
The part that makes this annoying is that the T4's can be edited manually either, so if you want to use Wave's T4's, you have to basically find a way to put in the numbers that work with their system.