IMPORTANT: This section is part of your Initial Setup. These steps can be followed should you need to correct any customer items.
For the user to reflect the correct amounts of child(ren) taxable benefits, the user will need to indicate each customer items that is to be included on the Income Tax Receipt. This will require adding additional information to each item.
Note – for new users, this will be part of your initial setup when creating your items. For those users who have already created all items, all customer items have been defaulted to Fee and Fee Reduction. If customer item was associated to a childcare service, we have assumed that it is a Fee. Anything related to Subsidy we have assumed that it is a fee reduction.
Please review the Customer Prices report to see default Customer Item and its associated Fee and Fee Reduction. Proceed to update all Customer Item to reflect the correct information pertaining to Income Tax reporting.
STEPS:
- Left Menu >Setup.
- Select: Accounting > Item
- Click the “edit pencil” to edit the rate(s) to be included in the tax calculations.
- Note – CRA has specific guidelines on what can be included – if you are unsure, contact your accountant or CRA for guidance.
- Click the down arrow in field Update the Tax Receipt Item Type – three options display:
- Not applicable (refers to selected fees that are not included on the tax receipt i.e., NSF, and subsidy fees)
- Fee (refers to all fees to be included on your tax receipt)
- Fee Reduction (refers to fees that reduce the childcare fees – i.e. Subsidy Payment, CWELCC Payment, Affordability Grant Payment, that reduce the parents fees due etc.)
Note – The system defaults all items related to services as Fee, and all subsidy and grants Fee Reduction)
The tax receipt will automatically calculate all Fee less Fee Reduction less Not applicable fees.
- Select the Save Icon located at the top of the screen: to save all changes.
- Repeat for all customer items.