Year-End Checklist

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
  • NEW - Ensure you fill out Box 45, Employer-offered Dental Benefits this year for your T4s with the applicable Canadian Dental Care Plan (CDCP) access codes to indicate whether an employee, former employee or spouse of a deceased employee was eligible on December 31 of the reporting tax year to access dental insurance or coverage of any kind.

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
  • Update WSIB/WCB rates to ensure proper calculation if required
  • Update employer health tax (EHT) rates to ensure proper calculation if required

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