Sources of Income on T4s
I am using Simply Accounting and have some employees that are reimbursed for mileage and supplies.
On their 'income' tab for each of them, I have allowed/used 'kilometers' and 'supplies' so that these appear on their paycheques for reimbursement.
This works well all year long as I can pay them out their expenses with every paycheque. However, I am finding, that at T4 time, both the kilometers and supplies are being added to their total Income on the T4. This should not be.
How do I eliminate this from happening?
Sorry Trish, I don't use Sage 50 (Simply Accounting), so can't help you. Hopefully one of the other readers can.
Unless reimbursements are attracting taxable benefits, I personally would not run them through payroll but issue separate reimbursement cheques with supporting documentation as backup to support the payment. I know that doesn't help you now but something to consider for the future.P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.