Withholding can be manually or automatically generated from a Pay Run. To generate a remittance essentially means to make a record of the amount of the liability, to whom is it to be paid and by what date.
Setup
Each different withholding will have a Payee, or who the amount withheld is to be paid to. Income tax, CPP, and EI have a Payee of Canada Revenue Agency. Other types of withholding will have other Payee's. This is set up against the Tax, or Deduction payroll item within Company setup. When the software is set up, the Remittance Payable to as shown in Figure 1 is set against any withholding that requires remittance to a third party.
Note: This is necessary for either the manual or automatic creation of the Accounts Payable bill from a Pay run. If no Payee is filled into the field shown in Figure 1, no Accounts Payable bill will be created. There is no option to add a payee at the time of the Pay Run. See Add Deduction or Add Tax for further information on setting up these types of payroll items.
Figure 1: Details window of Tax payroll item
How to Automatically Generate a Remittance
Generate a Pay Run and have the Generate Remittances check box selected as shown in Figure 2. This will look at all deductions and taxes being withheld on the Pay run that have a Payee specified, and create AP bills for each Payee when the Pay Run is processed.
Figure 2: Pay Run worksheet-auto generate Remittances
Once the Pay Run is processed navigate to the Remittance Tab of the Pay Run to see the results of the remittance. Figure 3 displays a bill created for Canada Revenue Agency. If multiple Payee's existed on a single Pay run, all of the bills created from the Pay run will list in this window.
Figure 3: Remittance window of the Pay Run
[Edit Bill] will open the System Five Accounts Payable bill window displaying the details of the bill auto created from the Pay Run (See Figure 4). The ability to edit the bill from the Pay run allows for any modifications necessary to be made. The Bill Number is auto assigned as REMITTANCE, so this can be changed to something more relevant. The Payee, due dates and ledger distribution are all specified against the payroll item within Company Setup so should not require any changes.
Figure 4: Accounts Payable Bill window
[Save] to return to the Pay Run window.
How to Manually Generate a Remittance
Generate a Pay Run and have the Generate Remittances check box unchecked as shown in Figure 5. This will not consider the deductions and taxes being withheld on the Pay run nor will it create any Accounts Payable entries.
Figure 5: Pay Run window
The reason for no auto remitting would be to control when the Accounts Payable bill is generated. At any time after the Pay run has been processed, Remittances can be generated from the processed Pay run. Figure 6 displays the Generate Remittance window opened from using the [Generate Remittances] button on the top of the Pay Run window.
Note: This window will only appear on processed Pay Run's and if remittances have not been generated for the Pay Run.
Figure 6: Manually Generate Remittances window
The information that displays on this window is generated from the Pay Run withholding.
- Warning: The Amount column for each separate withholding can be modified however this is to be done with extreme caution as it can have serious consequences. The amounts displayed here are the accumulation of amounts withheld from employee's. It is the responsibility of the Employer to remit these amounts and altering them can cause the amounts remitted to be incorrect. If a Pay run has been generated with errors and manually adjusted requiring the remittance amounts to be adjusted, this can be done here or once the bill is generated
Click the [Generate Remittances] button to create the Accounts Payable bill.
