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

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