Guiding you through payroll year-end processing in nine easy steps



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:

  1. Review year-end documentation: available in the Payworks application now
  2. Confirm New Year's payroll run schedule: mid-November
  3. Review preliminary year-end payroll reports: every pay run
    1. Check Social Insurance Number (SIN) and mailing addresses for all employees
    2. Check for CPP and Employment Insurance (EI) shortages
    3. Compare total remittances on the report with your PD7A (statement of account) Canada Revenue Agency (CRA) report
  4. Review the payroll year-end box assignments by pay element: end of November
  5. Enter all taxable benefits that affect statutory deduction calculations: complete on or before the last run of 2022
  6. Enter all manual/reversal payments not yet recorded: complete on or before the last run of 2022, and before authorizing tax forms
  7. 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
  8. 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
  9. 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.

Interested in a Demo or more info?

We would be more than happy to show you how to get the most from our suite of workforce management solutions. Simply contact your sales representative at  to start the conversation.