Background
Sometimes, due to setup issues, older/improper tax tables, or difference of calculation method it is possible that AccountEdge withholding values are different than the amounts indicated on the CRA Calculator (Canada) or figures given to you by your accountant. This support article presents proper troubleshooting options for finding out why there is a discrepancy (and how to correct it if necessary).
Troubleshooting Procedure - Initial Steps
These steps should always come first as they are the most common cause of issue. After looking at these steps proceed to the next section dependent on your country.
Verify the AccountEdge version is up to date. You can do this by going to AccountEdge > Check for Updates on Mac or Help > Check for Updates on Windows. Please note that this only checks for updates to your current software.
Verify the latest Payroll Tax Tables are installed (Setup > Payroll Information). As a note, generally tax tables are released around January and July but there are often updates throughout the year as well.
Canada - Next Steps
Most discrepancy's between the CRA calculator results and AccountEdge calculations are due to differences in the claim code used. These instructions will start there and then look at the other possibile problems.
To Start:
Open employee Card File card (Lists > Cards > Employees) from the menu bar at the top of the screen
Click on the arrow/double arrow next to the employee
Click on the "Payroll Details" tab on the top of the screen
Click on Taxes along the left hand side
Verify that the Net Claim amount is set properly for Federal TD-1
Click the Provincial TD-1 Radio Button and verify that the Net Claim amount is set properly
If you had to change anything try running a paycheck and see that the amounts agree. As a note, the CRA calculator defaults to Claim Code 1 (which is what most employees use).
After this has been confirmed you can move further on to checking the other employee details.
Open employee Card File card (Lists > Cards > Employees) from the menu bar at the top of the screen
Click on the arrow/double arrow next to the employee
If using the Multi-currency feature (you can skip this if you are not) Click Profile and Verify the correct Currency Code is indicated on card
Click on the "Payroll Details" tab on the top of the window
Check Termination Date: If you are using timesheets and the Termination Date field is not empty employees' card will not be displayed in the list of employees to pay (even if the termination date is a future date)
Verify the correct province code is set in the Tax Table field
Click the Wages link on the left-hand side
Verify the Pay Basis, Salary and Hourly Rate
Verify the Pay Frequency
Verify the correct Wage Categories are selected; for each Wage Category
Click the drill-down arrow
Click the Exempt button
Verify the correct exemptions are indicated (an exemption here would exclude the item from the tax and deduction calculation)
Click the Deductions link on the left-hand side; For each ticked Deduction
Click the drill-down arrow, opening the deduction information window
Verify the Type of Deduction and Deduction Limit are correctly set
Click the Exempt button
Verify the correct exemptions are indicated (an exemption here would exclude the item from the tax calculation)
Click the Employer Expenses link on the left-hand side; For the Appropriate Entitlement
Click the drill-down arrow, opening the accrual information window
Verify the Linked Payable account is a Liability account
Verify Accrual is indicated as the Type of Expense
Verify a correct Expense Basis
Verify a correct Wage pay out account is linked in the Linked Wages Category field
Click the Expense button to verify the Linked Wages Category account is exempted
Verify the (other tax) expenses are correctly ticked
Click the Taxes link on the lef-hand side; Verify the appropriate withholding taxes are indicated (usually CPP, EI, and Income Tax, or EIQ, Income Tax, QPIP, QPP, Quebec Income Tax)
US - Next Steps
Open employee Card File card (Lists > Cards > Employees) from the menu bar at the top of the screen
Click on the arrow/double arrow next to the employee
If using the Multi-currency feature (you can skip this if you are not) Click Profile and Verify the correct Currency Code is indicated on card
Click on the "Payroll Details" tab on the top of the window
Verify the correct Residence and Work Codes are set
Click the Wages link on the left-hand side
Verify the Pay Basis, Salary and Hourly Rate
Verify the Pay Frequency
Verify the correct Wage Categories are selected; for each Wage Category
Click the drill-down arrow
Click the Exempt button
Verify the correct exemptions are indicated (an exemption here would exclude the item from the tax and deduction calculation)
Click the Deductions link on the left-hand side; For each check marked Deduction
Click the drill-down arrow, opening the deduction information window
Verify the Type of Deduction and Deduction Limit are correctly set
Click The Exempt button
Verify the correct exemptions are indicated (an exemption here would exclude the item from the tax calculation)
Click the Employer Expenses link on the left-hand side; For each expense
Click the drill-down arrow, opening the employer expense information window
Verify the Linked Payable account is a Liability account
Verify the expense Type, Basis and Limit are correctly set
Click the Taxes link on the left-hand side
Verify the Federal Tax Level radio button is selected
Verify the correct Marital Status as well as the correct Allowances (as indicated on the employee's W-4 form)
Verify a correct, employee-indicated Extra Withheld is indicated
Perform the same tasks for the State and Local entities
Verify the appropriate withholding taxes are indicated
After this is done you should attempt to run another paycheck for this employee and see if the figures match properly.