The purpose of this document is to provide guidance to the payroll processor for the year end processes.

Step 1: Prior to end of year

  • Balance and Reconcile Payroll Tax account remittances to PD7A
  • Balance and Reconcile Payroll Tax account remittances to payroll register
  • Conduct self audit of CPP and EI
  • Ensure employee addresses are current
  • Ensure accurate social insurance numbers are reported
  • Reconcile all payroll related GL accounts
  • Validate earnings and deductions are charged to correct GL cost center accounts
  • Provide employees with next year TD1 and TD1P forms for completion
  • Ensure the applicable stationary is on hand for mailing T4 & T4A’s

Step 2: Taxable Benefits

  • Ensure taxable benefits reported on each pay when received and enjoyed
  • Process taxable benefit adjustments, e.g. company car benefits
  • Validate benefits are reported in all required boxes on T4 slips
  • Review Payroll Codes setup to ensure all are reported in required boxes on T4

Step 3: Filing Procedures

  • Review documentation on processing T4 summaries
  • File slips and summaries with CRA

Step 4: Setup for New Year

  • Navigate to the Payroll YTD Totals page, Click on the 365 Close icon. Choose the year to be archived.

  • Update TD1 & TD1P amounts from new forms received from each employee
  • Communicate new year CPP & EI rates and maximums to employees
  • Create Payroll Calendar for payroll processing and pay day conflicts
  • Provide new pay calendar to employees
  • Ensure new WCB rates are recorded in system
  • Update TD1 and TD1P Display values

  • Ensure Employment Insurance rate is correct for new year