• Last Updated:
  • Mar 2nd, 2018 7:02 pm
Tags:
[OP]
Penalty Box
Jun 24, 2015
4963 posts
1494 upvotes
0 downvotes

How to recover overremittance

Hey Guys,

In my 2017 payroll year a former acting accountant was tasked to calculate and write the check for payroll remittance to CRA for our business, after he did such, I took over and did the remaining payroll remittance for the remainder of 2017. While I was tasked to do this, I normally go out of my way in any job and go above and beyond my responsibility so I did a quick audit of the books and noticed that where he was suppose to remit a specific amount per month for the employee deductions, He actually did deduct the correct from the employees checks, but in our remittance account he wrote the check to the CRA for a much higher number, so despite that, NO EMPLOYEE WAGES WERE AFFECTED. When it was my turn to remit, I did the calculations and remit the correct amount because I was given the position and only had 2 days to send the remittance. after sending the remittance I did the quick audit of the books and discovered he over contributed to the CRA, I called them and they told me to under contribute for the next period, however the amount he over contributed was equal to the next months contribution plus more, so there was a surplus of like 400 bucks per employee, that is a lot of money so when I filed the return and did the T4, my numbers matched but there was a balance on the account. How do I get this back? with 5 ore more employees this balance adds up significantly and because of this we had to take money out of other accounts to not go in the negatives in our payroll bank account, any ideas? They send me the PIER form and I filled it out and explained why the over payment error occurred but does that guarantee me a refund or not?
Hi
7 replies
Newbie
Mar 30, 2016
72 posts
45 upvotes
Sorry to hear you have to deal with this.

I don't encounter this much since we calculate our remittance correctly however the procedure would be, as I see it, one of two ways:

1) You do your source deductions for the next month and mark 0 in the amount owing for the period. This will almost certainly trigger an agent to call you, you can explain the situation and if your explanation is good enough they will move on.

2) continue remitting the balances and carry the over-payment to the end of the year. If you go this way you will file T4s there will be an over remittance which will result in a letter being sent to you to explain the differences, again same result however this process is FAR MORE painful. You have to mail information in employee by employee.

In both scenarios you will likely encounter CRA so as long as you're doing it right now it will just be a slightly annoying process. If I was you I would look into the first option as you get the credit sooner, and you also likely only run into a phone call not a trust exam/discrepancy letter.

Since I don't know the specific numbers/situation this should not be taken as tax advice. I'm just a random guy on the internet!

Cheers.
No external links in signatures, please see the forum rules - Moderator.
[OP]
Penalty Box
Jun 24, 2015
4963 posts
1494 upvotes
0 downvotes
Thanks. Since I noticed this before year end, the amount of over payment was MORE than the next month's remittance, so I skipped the next months remittance, and I DID INFACT call the CRA and explained to them I have over remitted, they did not seem to care and told me to just report the actual amount on my T4's and the rest will show up as over payment. Because that was Already my last month for the fiscal year there was nothing else I could do. Do you think the lady whom I spoke to could have done it differently and refunded the difference to me? Do they note my account when I called in on november and said I OVerpaid? I want the money refunded how long will it take?. The person who made the mistake is no longer doing accounting work any more due to his carelesses.
Hi
Newbie
Mar 30, 2016
72 posts
45 upvotes
When you file your T4s you will get a letter then a call regarding what the overpayment is for. Each agent is different but if all goes smoothly that agent on the phone can move forward the credit or refund it.

The key is convincing them this is an overpayment not an error. So make sure you have your explanation ready.

The agent on the phone you talked to was likely unable to help.
No external links in signatures, please see the forum rules - Moderator.
[OP]
Penalty Box
Jun 24, 2015
4963 posts
1494 upvotes
0 downvotes
I never got the call but I got the letter, its called a PIER letter, I filled it in correctly and gave my explanation and they wanted the calculations so they know I paid my employee the correct amounts and did not short change my employees. how long does this letter take to process? 60 days or more?
Hi
Newbie
Mar 30, 2016
72 posts
45 upvotes
You should do your PIER report online next time. It would likely save you a lot of time. (MyBusiness account --> PEIR Reporting)

Guessing processing times on these things are impossible but I would imagine CRA wants to finish these in time for April 30th if submitted on time.

Good to see it's moving forward.
No external links in signatures, please see the forum rules - Moderator.
[OP]
Penalty Box
Jun 24, 2015
4963 posts
1494 upvotes
0 downvotes
I did it online, they said to go to online and chose "respond to notices" which I did and filled in the PD4R forum online and submit it electronically, it still takes time its been 2 remittance cycles now and no refund
Last edited by GoodFellaz on Mar 2nd, 2018 7:02 pm, edited 1 time in total.
Hi
[OP]
Penalty Box
Jun 24, 2015
4963 posts
1494 upvotes
0 downvotes
Okay so the advice I got from the CRA to wait for 90 days was wrong and the advice I got from other people on here was also wrong. No one contacted me, no one was looking into this. I simply went to my My CRA Account online and went to: "Transfer of a misallocated credit" entered the amount of credit I had on my 2017 account after my T4's were filed. It was a small amount but I filled in all the forms to transfer it over to my 2018 program year and submitted it. After about a week, I checked my online CRA account and the balance was moved. I suspect its FASTER to move the balance to a different program year than request a refund check, plus its easier too, I will re-calculate my next months remittance and do a partial remittance instead of the full remittance. Easy as Pie.
Hi

Top