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One blog post closer to clean books.
Each blog post from the Castle team is packed with practical tips, real-world experience, and clear answers to common bookkeeping questions. Whether you're sorting expenses or planning for tax time, you'll find guidance to help you run your business with clarity and confidence.
Terms of Service
Welcome to Castle! These terms of service outline the rules and regulations for the use of our bookkeeping services.
By accessing this website and using our services, you accept these terms and conditions in full. Do not continue to use Castle services if you do not accept all of the terms and conditions stated on this page.
Castle offers professional bookkeeping services including transaction categorization, reconciliations, financial reporting, GST/HST filing, and other related services as agreed upon with the client.
2. Billing and Payments
All services provided by Castle are billed on a recurring basis unless otherwise
agreed upon. Payments are due upon receipt of invoice. We accept payment via credit card, debit card, and electronic funds transfer.
3. Cancellation and Refund Policy
Clients may cancel services at any time by providing 30 days’ notice in writing or via email. Refunds for prepaid services will be prorated based on the remaining unused portion of the services.
4. Privacy Policy
Our privacy policy outlines how we collect, use, and protect your personal information. We do not sell or share your information with third parties without your consent, except as required by law.
5. Liability
Castle will perform all services with reasonable care and skill. However, we do not accept liability for losses resulting from acts of nature, third-party errors, or misuse of financial information or reports by the client.
6. Amendments
Castle reserves the right to amend these terms of service at any time. Amendments will be effective immediately upon posting on this website.
7. Contact Us
If you have any questions about this privacy policy or our privacy practices, please contact us at:
Castle
316 1st Ave NE
Phone: 587-872-0602
Email: info@bookwithcastle.com
One blog post closer to clean books.
Each blog post from the Castle team is packed with practical tips, real-world experience, and clear answers to common bookkeeping questions. Whether you're sorting expenses or planning for tax time, you'll find guidance to help you run your business with clarity and confidence.
How to Reconcile Payroll Liabilities Monthly (Step-by-Step)
Reconciling payroll liabilities is what ensures the amounts withheld from employees actually match what was later remitted to CRA. Each payroll run creates a liability — and each CRA payment should clear that liability. When it doesn’t, the books fall out of sync with what was actually paid, which leads to year-end cleanup and T4 mismatches.
1. What you’re checking for
Each month, you’re confirming that:
- The liability created from payroll matches what the software says is owing
- The CRA remittance is applied against that liability (not expensed)
- The liability account returns to zero for that pay period
If the balance does not return to zero, something was posted incorrectly.
2. The three numbers that must match
A clean reconciliation means these three figures line up:
- What payroll software says is due to CRA
- What QuickBooks shows in the Payroll Liabilities account
- What was actually remitted to CRA
If any one of those is different, there is an entry problem.
3. The most common error
The most frequent mistake is coding the CRA payment to an expense account instead of clearing the liability. When this happens:
- Payroll expense is double counted
- The liability account never clears
- Balances start to accumulate month after month
- Year-end totals and T4s stop matching CRA
4. What a clean month looks like
A proper reconciliation means:
- Liability is created during payroll
- CRA remittance is posted against that liability
- Balance returns to zero for the period
- No carryover amounts into the next month
This is how you know payroll is fully accounted for.
5. Why this matters
CRA treats employee deductions as trust funds. They do not belong to the business — you are simply holding them until remitted. A clean liability ledger demonstrates that those funds were handled correctly and passed through fully.
Key takeaway
Payroll creates the liability.
The CRA remittance clears the liability.
If that cycle returns to zero each month, payroll will always stay in sync with CRA and you avoid year-end rebuilds and T4 discrepancies.
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