Note: This applies to the CPP, EI, and Tax amounts Rise remits on your behalf. This is one common way we see clients set up Journal Entries for government remittances. Your chart of accounts and setup may differ, so check with your accountant or bookkeeper before you post them.

On pay runs, Rise normally invoices and withdraws three things from your account:

• Net pay
• Government remittances (both the employee and employer portions)
• Rise service fees

One of the perks of using Rise is that it handles CRA remittances as part of the pay run invoice. We take the money out and send your CPP, EI, and Taxes to the government.

That means you don't need to hold employee source deductions or employer contributions in a payable account, and you can expense things right away.

To illustrate this common setup, let's look at a single employee who earns $1,000 in gross salary, with $60 in employee CPP and EI deductions and $64 in employer CPP and EI contributions.

Suggested Rise Journal Entry Setup

Rise Journal Entry maps your payroll instructions to the accounts in your accounting system or ERP. After a pay run, you can pull a report of the journal entries or post them straight to QuickBooks Online or Xero through the integration.

Since most companies split commission, bonuses, severance, and other earnings across different GL accounts, we've built the Journal Entry feature to map each earning code to its corresponding GL codes. This means the report will debit wages expense accounts and credit cash or payroll clearing accounts — for the full GROSS amount of the earnings.

You set up these mappings once. For the steps, see Mapping your payroll instructions with your chart of accounts.

For example, for the Reg. Salary Pay (gross amount), you might map the earning like this:

Because this maps the full gross amount, it already covers the employee's net pay plus the CPP and EI withheld from their cheque.

Employee deductions

Rise withdraws the employee's CPP and EI on the same pay run and remits them to the government for you. They're already included in the gross mapping above, so you don't need to map them separately. You can leave them unmapped.

Employer contributions

The employer CPP and EI contributions are an added cost to you, on top of gross wages. Since Rise also remits these on the pay run, you can expense them right away, with no payable to hold. Map each employer contribution to debit the expense account and credit cash or payroll clearing:

Together with the gross earning mapping, this nets to $1,064 of total expense and a $1,064 cash withdrawal, which matches what Rise actually took out.