This feature enables payroll administrators to increase or decrease statutory withholding amounts for either the employee or employer portion by applying an adjustment to a draft payroll.
These adjustments directly impact the amounts remitted to the Canada Revenue Agency (CRA), making it possible to correct previous withholding errors without requiring manual workarounds.
To Adjust Statutory Withholdings
Navigate through your open payroll to Benefits & Deductions:
Click on the underlined amount under Benefits & Deductions for the employee(s) you'd like to make adjustments for:
Adjustments can be made for both Employee and Employer contributions.
Important: CPP and EI adjustments do not automatically calculate or update the corresponding employee or employer portion. If you’re adjusting CPP or EI, review and enter the applicable adjustments for both portions as needed.
Select Statutory Withholding type, enter Adjustment Amount and Target Payroll. You can include an optional note that will appear on the employee pay slip.
Once saved, the adjustment will appear in the employee’s payroll details. To edit or remove it, click the three-dot menu beside the adjustment.
Adjustments will be noted in the Benefits & Deductions screen for easy review:
Alternative: You can also select Adjust Stat Withholding from the three-dot menu beside the employee’s name.
Adjustments will be included in the total remittances for the payroll and recorded on the employee pay slip.
How Adjustments Affect Payroll
CRA remittances: Adjustments are included in the payroll’s total remittance amounts.
Employee pay slips: Adjustments are recorded on the employee’s pay slip.
Important Considerations
Same calendar year: Adjustments can only be applied to payroll periods within the same calendar year due to year-end tax reporting requirements.