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--- training:emp_adv_deduction_method1209100936 [2017/01/18 13:37 (7 years ago)] – [Solution] sjackson
+++ training:emp_adv_deduction_method1209100936 [2017/01/18 14:17 (7 years ago)] (current) – [Solution] sjackson
@@ Line 8: / Line 8: @@
 <note important>**Important Canada Note:** Revenue Agency requires the withholding of Income tax, CPP, and EI from employee advances as per publication T4001T4001 - Employers' Guide - Payroll Deductions and Remittances, so taxes should be set up against Advance payroll items.
-THEREFORE: In Canada, do everything this video says, AND in the Company Setup area, add all taxes to the income Advance paid out, AND add all taxes to the deduction Advance repaid.  This will charge taxes on the advance paid, but 'refund' them back to the gross when paid back.</note>
+THEREFORE: In Canada, do everything this video says, AND in the Company Setup area, add all taxes to the income Advance paid out, AND add all taxes to the deduction Advance repaid.  This will charge taxes on the advance paid, but 'refund' them back to the gross when paid back.
+I did hear from a Canadian CPA, that you could avoid taxing the Advance Paid and Repaid IF it all happened in one reporting period (month) for Canada Revenue Agency (CRA).  The goal is that the CRA wants their money in the month it is due, and they do not want companies using Payroll Advances to delay their taxes owing until the following reporting period (month).</note>
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