January 2015 Payroll Tax Update - NOW AVAILABLE
The payroll tax update for January 2015 is now available for download from the Sage Knowledge Base. This update is for Sage BusinessVision 2015 and Sage BusinessVision 2014.
To find out more about all the tax changes please contact your tax consultant or government tax offices. You can also visit the CRA Web site. http://www.cra-arc.gc.ca.
If you have questions regarding the status of your Payroll Update Plan, please contact Sage Customer Care at 866.725-0724. option 1. If you require assistance with installing the update, please contact Sage Customer Support:
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How to Download the Tax Update
1. Navigate to the Sage Knowledgebase located at https://support.na.sage.com
2. Click Login and login with your username and password.
3. Select Sage BusinessVision from the list of products.
4. Click Downloads
5. Click the article titled “Download January 2015 Payroll Tax Updates for Sage BusinessVision 2015 and 2014 ”.
6. When the article open, scroll to the bottom and click Download Now or Direct Download to begin the download process.
NOTE: There is one single file to download that may be installed on either Sage BusinessVision 2014 or 2015 not separate files as in the past.
How to update your payroll tables
Please note, upon installation of this update you will be prompted for a password. If you did not received an email with the password, please contact us.
Although the update does not affect your data files, we strongly suggest that you make a back-up copy of your data files regularly and before any updates for your protection. Network users should ensure they are the only users on the system when performing this update or while making back-ups. You can verify that the Sage BusinessVision Payroll Update has been implemented by reading the tax table date available in System Info. From the “Help” menu, choose “About Sage BusinessVision” and then click on the “System Info” button. The Payroll “Tables” date should be “Jan-2015”.
1. Make a complete back-up of all data files.
2. Double click the payroll update executable package to begin.
3. When prompted, enter the password to install the BusinessVision payroll update and click the “Next” button.
4. On the Welcome dialog, click the “Next” button, and then click the “Yes” button to make changes to the Sage BusinessVision program directory. The update will run automatically and will only take a few minutes.
5. Click the “OK” button to confirm that the installation is complete. If you are prompted to reboot your computer, do so before running Sage BusinessVision.
6. Sign-on to Sage BusinessVision and from the “Help” menu, choose “About Sage BusinessVision” and then click on the “System Info” button. The Payroll “Tables” date should be “Jan-2015”.
Note: This update must be performed on all workstations running Sage BusinessVision.
How to perform your payroll year end
The Payroll Update should be installed before performing a Payroll Year End.
1. From the “Utilities” menu, choose “Payroll Setup > Payroll Year End”. (If this option
appears disabled (grey), then the option has been denied for the current user. A user with access to Payroll Year End is required in order to perform this function). DO NOT confuse a Payroll Year End with your fiscal year-end. A Payroll Year End is performed at the end of each calendar year, and is not related to your fiscal periods or fiscal year-end.
2. Choose whether to delete historical timecard details (the default is to retain all timecard details). For historical purposes, a minimum of two years of timecard detail should be retained. Click OK to continue with the Payroll Year End process. Do not run the Payroll Year End process more than once.
3. Perform the TD1 Revision function that automatically adjusts the tax credit amounts for every employee. From the “Utilities” menu, choose “Payroll Setup > TD1 Revisions”. Ensure that the indexation factor is 1.017, then click the “OK” button. The system will make the necessary adjustments. This process will also automatically update certain Provincial Claim amounts. Do not run the TD1 revision process more than once.
4. After the Payroll Year End process is completed, you can check the results from within the Payroll module. With any active employee’s details loaded, click the “Earnings” tab to display year-to-date earnings. Last year’s year-to-date earnings should be displayed in the “Last Year” column. This information is used for the production of T4’s (and Releve-1 Worksheet values for Quebec). The “This Year” column should appear empty, as no paycheques for 2015 have been produced.
5. Check each employee profile to confirm that the appropriate tax credit amount has been correctly adjusted, and that the correct value appears in the field for Provincial Credits.
Frequently Asked Questions Regarding Payroll
Q. When should I install my Payroll Update?
A. Before your first payroll run in January 2015, even though you may be paying employees for time worked in December 2014.
Q. What does the Payroll Year End accomplish and when should I perform the Payroll Year-end?
A. A Payroll Year End is necessary in order to finalize year-to-date information, and make that information available for producing T4's. Be sure to perform the Payroll Year End before producing ANY paycheques in 2015. If paycheques are produced for 2015 and then the Payroll Year End is performed, T4's will be incorrect.
Q. What should I do if I didn't get the update installed before the first pay period in January 2015?
A. Install the update before the second pay period in January or as soon as possible. Take no other action – any discrepancies will be straightened out when your employees file their 2015 tax return.
Q. I sometimes notice differences between the taxes calculated by Sage BusinessVision and the taxes I calculate using the manual tax tables. Why is this, and which figure is correct?
A. The Sage BusinessVision calculations are correct because they use exact formulas outlined in the tax laws, and published in CRA Publication T4127 100th edition. Manual tables estimate tax deductions for a salary range, while the Sage BusinessVision formulas work with fractions of a cent. Also, manual tables ignore certain provincial allowances and deductions.