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Guiding you through payroll year-end processing in nine easy steps
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Originally published in 2018.
One of the keys to hassle-free year-end payroll processing is following a handy checklist! We've done the heavy lifting by identifying each of the steps required to ensure businesses complete the process accurately and on time.
Payroll year-end processing pro tip: Be mindful of the holiday schedule. Payroll payments cannot be dated on a statutory or banking holiday. Payroll processing dates are adjusted to accommodate these holidays. Make sure to mark them down in your own calendar!
Payroll year-end processing pro tip: Canadian Pension Plan (CPP) statutory deduction shortages can occur as the result of an employee turning 18 or 70 during the calendar year. Check out step 3 below!
Let's get started:
- Review year-end documentation: available in the Payworks application now
- Confirm New Year's payroll run schedule: mid-November
- Review preliminary year-end payroll reports: every pay run
- Check Social Insurance Number (SIN) and mailing addresses for all employees
- Check for CPP and Employment Insurance (EI) shortages
- Compare total remittances on the report with your PD7A (statement of account) Canada Revenue Agency (CRA) report
- Review the payroll year-end box assignments by pay element: end of November
- Enter all taxable benefits that affect statutory deduction calculations: complete on or before the last run of 2022
- Enter all manual/reversal payments not yet recorded: complete on or before the last run of 2022, and before authorizing tax forms
- Ensure all terminated employees are included on the payroll year-end reports: complete on or before the last run of 2022, and before authorizing tax forms
- Enter year-to-date adjustments before authorizing payroll year-end tax forms: complete on or before the last run of 2022, and before authorizing tax forms
- Review and authorize final payroll year-end reports and forms: complete on or before Thursday, February 16, 2023
Payworks client payroll year-end processing pro tip: Keeping terminated employees’ Employee Self Service (ESS) accounts activated allows them to access their tax forms and prevents an influx of one-off requests after year-end has been finalized. Alternatively, clients can choose to mail tax forms to past employees.
Throughout the year, Payworks is here for our clients with unlimited, one-to-one support from a National Payroll Institute (NPI)-trained Client Service Representative (CSR). For Payworks clients who have additional questions - when you call, we answer! Reach out to your dedicated CSR anytime.
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ResourcesT4 SeasonYear EndPayroll ResourcesBusiness OwnerSMEFranchiseeHospitalityBookkeeperPayroll Management
