Source Deduction

Posted By on December 3, 2010

How can I find out how much source deductions I have to pay to the government? I am in Canada, and working with Simply Accounting.

Comment from: Abacus [Member]
There are a few steps to take but it is easy.
1st- in your home screen click on reports, financials, and transactions by account. Pick
the date from, ex: July1,2009 to July31,2009.
2nd- in the 2000 series liability accounts choose the three source deduction accounts.
ex: CPP payable, EI payable, Income tax payable.
3rd- print the report and enter the liability in the purchases journal. Remember the date
in the purchases journal should always reflect the ending date of July 31, 2009, and
the invoice number should say “July09Payroll” to identify the source deduction
ending period. Good luck.

09/27/09 @ 17:30
Comment from: nk [Visitor]
1. For 2010 Provincial and Federal tax claim codes for TD1.

Federal amount $10,382.

Provincial amount for the following provinces are:

Alberta $16,825.
British Columbia $11,000.
Manitoba $8,134.
New Brunswick $8,777.
Newfoundland and Labrador $7,8333
Nova Scotia $8,231.
Northwest Territories $12,740.
Nunavut $11,714.
Ontario $8,943.
Prince Edward Island $7,708.
Saskatchewan $13,348.
Yukon $10,382.

12/29/09 @ 08:36
Comment from: Denis [Visitor]
does anyone know how to change the claim codes in simply accounting payroll module?

Yes, go to simply accounting home page.
Click on employees
Choose the employees name
Click on taxes tab
Change the federal and provincial claim.

12/29/09 @ 09:16
Comment from: JJ [Visitor]
Does anyone have some video tutorial. something that shows the basics. A URL would be great.

12/30/09 @ 09:22
Comment from: NK [Member]
go to, at the bottom of the home page you can sign up and a series of turorials will be send to you. You’l find it very useful.
12/31/09 @ 09:35
Comment from: NK [Member]
I have heard that there is a fine if an employer does not get a SIN number from its employees.
Does anyone know.
12/31/09 @ 10:03
Comment from: NK [Member]
Hi Rob,
You are right. If an empoyer does not make a reasonable effort to get a SIN number from their employees, the employer will be subject to a penalty of $100. for each failure. Make sure each new employee fills out a TD1 form for both federal and provincial claims. You can get these forms from
12/31/09 @ 10:06
Comment from: Kelowna Bookkeeper [Member]
To employers with payroll.
before you hire staff make sure you call CRA (Canada Revenue Agency) and get a payroll number.
The payroll number is the same as your business 9 digit number except it ends with RP0001, (RP for payroll).
the CPP, EI, and tax that is withheld from your employees is called “Source Deductions” and it is due on the 15th of each month for the previous month.
CRA phone number is 1800-959-5525.

03/12/10 @ 09:25
Comment from: Debrah [Visitor]
I was wondering if anyone knows when you are putting the source deductions in the purchase journal which account do you choose to put the amount in? I know it would be an expense under which expense?
(I’m using Simply accounting)
06/14/10 @ 08:35
Comment from: NK [Member]
Hi Debrah
This is how to post source deductions in the purchase journal.
From the top:
Choose your vendor (Receiver General)
Your invoice number should reflect the month the source deductions are for eg: 31May10 SD.
The date should reflect the month end. eg 31May2010.
first line – in the amount section of the purchase journal enter how much CPP you have to remit and post to your 2 thousand liability account CPP Payable.
2nd line – in the amount section enter the amount of EI you have to pay and post to the 2 thousand EI Payable account.
3rd line – in the amount section enter the amount of income tax you have to pay and post to the 2 thousand Income Tax Payable account.
The expense accounts are in the 5 thousand series numbers and they get affected automatically every time you process payroll. So, you don’t do a separate entry to capture the expenses.
I hope this has helped.
06/14/10 @ 22:54

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