Getting Started
- Create a year-end reference file that lists all income, deduction types, and employees' earnings
- Determine which forms will be required (T4, T4A, RL-1, NR4)
- Download guides and forms from the CRA's website
Balance & Reconcile
- Review payroll set-up to make sure earnings, taxable benefits, and deductions have been accurately mapped
- Update any manual or cancelled cheques to payroll
- Cross-reference payroll tax account remittances with the payroll register report
- Run a test T4 and summary report, validate that earnings and deductions are reporting in the correct boxes, and balance to the payroll register
- Conduct PIER audit of the CPP & EI statutory deductions
- Remit outstanding CPP & EI statutory deductions with or before the final remittance for the tax year
- Ensure employee social insurance numbers are accurate
Taxable Benefits
- Taxable benefits reported each pay period when received or as enjoyed
- Process taxable benefit adjustments, e.g. company car benefits
- Validate that benefits are reported in all required boxes on tax slips
Pension Adjustment
- Validate pensionable earnings per company plan
- Calculate pension adjustment
- Complete RPP registration number reporting in T4 Box 50 for all plan members
Jurisdictional Reporting
- Employer health tax returns
- Workers' compensation annual reconciliation/return
- Northwest Territories/Nunavut Payroll Tax return
Year-end Accounting
- Reconcile all payroll related GL accounts
- Validate that earnings and deductions are charged to the correct GL cost center account
Set-up for New Payroll Year
- Review carry-forward balances for vacation accruals, banked overtime, unused sick days (if carry-forward is allowed), outstanding loans payable and/or garnishment balances
- Remind employees to file new TD1 for additional tax credits if required
- Review employees who are set to CPP and EI exempt
- Update payroll tax remittance frequency to avoid fines if required
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