Start the new year right
Here are some handy tips and answers to questions to help you kick off your 2016 payroll year right.
Do I need to close my payroll year before performing 2016 pay runs?
Yes, before you can process any pay runs in 2016, you must close your 2015 payroll year. This activates to 2016 tax tables and ensures the correct calculations for your payroll. Please note: the payment date (the day your employees receive their payments) will determine the tax year. If the payment is in 2016, it will be part of the 2016 tax year. This is in accordance with the Canada Revenue Agency’s guidelines.
We’ve made closing the payroll year really easy – all you need to do is select a payment date in 2016 and the system will automatically offer to close the year, allocate the pay run to the correct tax year and start using the newly revised 2016 tax tables for your pay runs.
I forgot to do a pay run in 2015 (or to pay out bonuses/commissions) – can I still record it as paid in 2015?
Yes! When selecting the pay cycle, set the payment (processing) date to a date in 2015. Run the pay run as usual. When you get to the “Payments” tab, Change payment type to cheque (or “manual”). The system will automatically offer to record this in 2015 as a “special” (off cycle) pay run.
How do I release vacation – and carry it over to the next year if needed?
You can release vacation if you click on the add + button and chose to release the vacation. Any existing vacation pay accrued for the employee will be shown in the total field. You can override that amount and enter a partial amount (ie less than the amount shown) or even an amount greater than what they have accrued (which will create a negative vacation balance).If you need to release all accrued vacation (including any vacation that will be accumulated on this particular run), check the box “Release all vacation pay including current earnings”.
If you close your payroll year, any vacation balances are automatically carried over for you. If you need to modify vacation balances, you can do so by editing the employee’s profile (year-to-date financial details tab).
How do I update the TD1 exemption amounts for my staff?
Have your employees fill out a new TD1 exemption form: Federal / Provincial . You should do this at the start of each year for each employee. Once you have the new TD1 (federal and provincial) amount – please modify the employee’s profile. Note: the system automatically updates any employee with standard TD1 exemption amounts when the payroll year is closed.
How do I create tax slips – T4, T4A and RL-1s ?
With PaymentEvolution Payroll your year end tax slips are created for you – no need to manually print and fill in forms. Here’s a handy guide on creating the slips, giving them electronically to your staff and sending them to the CRA – all online! GUIDE to YEAR END TAX SLIPS