Streamline year-end processing with an interactive, 10-step checklist
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Checklists are handy, and can help streamline any large project by breaking it down into manageable tasks. That’s why one of the keys to hassle-free year-end payroll processing is following the interactive checklist in our Payroll application! We’ve done the heavy lifting by identifying each of the steps required to ensure businesses complete the process accurately and on time.
Payworks pro tip: Know the statutory holiday schedule and how it affects your business’ payroll processing dates. Payroll payments cannot be dated on a statutory or banking holiday, and payroll processing dates are adjusted accordingly. Mark them down in your own calendar to ensure you don’t miss them!
Let’s get started:
- Review year-end documentation: Start around November 1.
- Confirm New Year’s payroll run schedule: Mid-November.
- Review preliminary year-end payroll reports: Every pay run from November through to the year-end processing deadline.
- Check Social Insurance Numbers (SINs) and mailing addresses for all employees.
- Check for Canadian Pension Plan (CPP)/Québec Pension Plan (QPP) and Employment Insurance (EI) shortages.
- Compare total remittances on the report with your PD7A.
Payworks pro tip: CPP statutory deduction shortages and overages can occur as the result of an employee turning 18 or 70 during the calendar year – this is why Step 3 is an important one to get a handle on early!
- Review the payroll year-end box assignments by pay elements: By the end of November.
- Ensure T4 Box 45 and/or T4A Box 105 contains the applicable coverage code: These specific tax form boxes are to fulfil the requirements related to reporting for the Canadian Dental Care Plan (CDCP). Complete on or before the last run of the current year, before authorizing tax forms.
- Enter all taxable benefits that affect statutory deduction calculations: Complete on or before the last run of 2024.
- Enter all manual/reversal payments not yet recorded: Complete on or before the last run of 2024, and before authorizing tax forms.
- Ensure all terminated employees are included on the payroll year-end reports: especially if you’re using a new payroll system, complete on or before the last run of 2024, and before authorizing tax forms.
Payworks pro tip: Keeping former 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 former employees after confirming their delivery address.
- Enter year-to-date adjustments before authorizing payroll year-end tax forms: Complete on or before the last run of 2024, and before authorizing tax forms.
- Review and authorize final payroll year-end reports and forms: Complete on or before Thursday, February 13, 2025.
We love year-end – yes, you read that right! You can love it too with our helpful checklists, videos, tax form filing, and expert support every step of the way (we even file on your behalf). To learn more about reliable payroll with a complete year-end package, custom reporting, and unlimited previews, visit: https://www.payworks.ca/solutions/payroll.
