I work at a firm in my city. I am a bookkeeper right now. There is something that I dont understand. We have a client, a Dr who is incorporated, to be exact. We send him spreadsheets for payroll, which shows him exactly what to take for CPP,EI and Federal Income tax payable. We also show him what to remit to the government every month
The problem is that when he takes his payroll, his net check is usually lower than what it states. What we do in the system(Simply) is put the difference from his net check that he took and what was suppose to be his net check, and put it into the federal income tax.
Every month he does this, he also sometimes over pays the remittance to the government.
What I dont understand is what do we do to the Federal Taxes Payable in the end? I heard that we put it to shareholder if he remitted too much, which makes sense..but if he didnt remitt enough, than what happens
