As the year-end approaches you won’t need to worry about tax slips, T4s and CRA deadlines. That’s because you used PaymentEvolution to process your payroll and business payments through the year. If you want year-end to be truly stress free, use this check-list to verify your pay runs and submissions.
To start, make sure you have setup the My Business access on the Canada Revenue Agency site. This will be the best way to submit and review your year-end tax slips before the Feb 28, 2017 deadline.
Check Reports and Reconcile
- Login to your account and look at the ‘year-to-date’ reports. If you’ve changed wages for your staff, added/removed benefits etc., ensure those are accurately recorded.
- Export your payroll data to your accounting system. You’ll want to ensure you’ve accurately recorded source deductions, special employee payments etc.
- Look at your employee details – ensure that you have correct social insurance numbers, TD1 amounts and accurate ‘year-to-date’ information. We strongly recommend that you give your employee’s access to PayChequer.comso they can see their own pay history online. Importantly, when you issue T4 / RL1 tax slips – they’ll be able to receive them immediately and it will save you from having to print and distribute them.
- Inform employees about any outstanding vacation balances so they may take the time before year-end.
Final Pay Run
- After you’ve reconciled your pay runs for the year, perform and corrections / changes on your final pay run. For example, if you’ve forgotten to include a commission or bonus – ensure it is recorded on this final pay run.
- Make note of any vacation balances and carryover any amounts according to your company policy.
- After the final pay run, close any remaining payroll periods.
- NOTE: the new pay roll year will automatically become available once you process a pay run with a payment date in 2017. You do not need to “close the year” – this is done automatically.
- After your final pay run, you can generate your final tax reports(T4, T4 Summary, T4A and RL1 reports) for the year.
Prepare for the New Year
- The system will automatically carry forward any unused vacation balances, if you company policy is different you will need to make adjustments – easily done in the Financial YTD tab of the employee’s profile.
- Carry forward any other items you need; loans, advances, garnishments etc.
- Send a notice to all your employees to submit a new TD1 form (provincial and federal). You’ll need to keep these on file and adjust individual employee profiles to accommodate the new exemptions as calculated on their forms.
- If you’ve changed any company benefits, deductions or custom earnings – modify your pay rules to reflect the changes
- If you haven’t signed up for ePay / direct deposit service– now is a good time to switch over.
With PaymentEvolution Payroll, your year-end is fast and simple. No more worrying about unwanted errors, or properly creating T4s.
Need help? Join our year-end webinar:
[December 15th] [Click here to reserve your seat]