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Year End Annual Checklist

- an easy to follow “to do” list for completing your annual Year End tasks (October to December)

Start-Up
  1. Create your Year End reference file.
  2. Determine which forms you will need - T4, T4A, RL-1, RL-2
  3. Download any guides and forms you may need from Canada Revenue Agency (CRA) and/or Revenu Québec (RQ).
  4. Hold a Year End meeting with your internal stakeholders such as HR, Finance, and IT to discuss what you need from each of them to complete Year End.
 

Balance & Reconcile
  1. Balance your payroll tax account remittances to your payroll register.
  2. Reconcile your payroll bank account for outstanding entries to payroll - manual cheques and void/cancelled cheques.
  3. Update any manual or void/cancelled cheques to payroll.
  4. Update any WCB/CSST awards reimbursed to you (the employer).
  5. Conduct a self-administered PIER audit of C/QPP, EI and QPIP deductions. You can find information on how to complete this task on the ADP Year End site.
  6. Remit your outstanding C/QPP, EI and QPIP with or before your final remittance for the current tax year.
  7. Run a test T4/RL-1 slip and summary report. You can request a Tax Form Trial Run Report using this online form - Tax Form Trial Run Report Request Form.
  8. Balance your T4/RL-1 report to your payroll register and validate that earnings and deductions are reported in the correct boxes. You can find information on how to complete this task on the ADP Year End site.
  9. Check that you have reported accurate social insurance numbers.
 

Pension Adjustment
  1. Validate your pensionable earnings per your company plan document.
  2. Calculate your pension adjustment - see T4 Box 52.
  3. Complete RPP registration number reporting in T4 Box 50 for all plan members.
 

Taxable Benefits
  1. Report the taxable benefits on each pay, you can do this when it is received or as it is used.
  2. Process your taxable benefits adjustments, e.g. company car benefits.
  3. Validate that your benefits are reported in all required boxes on your tax slips. You can find more information on how to complete this task on the ADP Year End site.
 

Filing Procedures
  1. Choose your tax forms production date and options. Note: ADP will automatically file any tax forms they produce for your company. You can find more information on how to complete this task on the ADP Year End site.
  2. Make sure you are aware of all filing deadlines and penalties for non-compliance.
  3. Establish your policies & procedures for amending or cancelling slips.
  4. Complete and file RQ summaries. Notes: 1) No CRA Summary is required if ADP produces tax forms for your company, however, RQ summaries must be completed and filed by you directly. 2) If you chose to produce tax forms yourself, ADP will not produce your tax forms and you must file all slips and summaries with the CRA and RQ directly.
 

Jurisdictional Reporting
  1. File your employer health tax returns.
  2. File your Workers’ compensation/CSST annual reconciliation/return.
  3. File your Northwest Territories/Nunavut payroll tax return.
  4. File your RQ Annual Summary reports.
    • Commission des normes du travail (CNT)
    • Workforce Skills Development and Recognition Fund (WSDRF)
    • Complete form Declaration des activités de formation (Quebec employers who pay WSDRF are required to complete this).
 

Year-end Accounting
  1. Complete your Year-end accruals.
  2. Reconcile all payroll-related GL accounts.
  3. Validate that your earnings and deductions are charged to the correct GL cost centre accounts.
 

Set-up for New Payroll Year
  1. Review your payroll calendar for payroll processing / pay day conflicts, such as statutory holidays. You can find information to help complete this task on the ADP Year End site. Refer to Closures Calendar, Last Payroll of the Current Year & First Payroll Run of the New Year Schedule and the Holiday Closures/Delayed Delivery Form.
  2. For weekly or bi-weekly pay frequencies, check for a 53/27 pay year and for potential impacts on your taxable benefits or deductions. Notify ADP of any pay frequency changes and on any taxable benefits or deductions affected. You can find information to help complete this task on the ADP Year End site. Refer to the Last Payroll of the Current Year & First Payroll Run of the New Year Schedule – Section C: Number of Pays for New Calendar Year. This is available from October to December.
  3. Distribute new year payroll cut-off schedule to HR, timekeepers, managers and supervisors, and unions, as necessary.
  4. Carry forward balances for:
    • Vacation accruals
    • Banked overtime
    • Unused sick days (if allowed at your company)
    • Outstanding loans payable
    • Garnishment balances
  5. Update your federal and provincial basic annual exemption. Note: ADP automatically updates your base tax credits.
  6. Remind employees to complete and provide new TD1 Federal and TD1 Provincial (TP-1015.3-V for Québec) forms for any additional tax credits.
  7. Remind your commission employees to file new TD1X/TP-1015.R.13.1-V form.
  8. Notify ADP of any program changes that apply to your payroll for the new calendar year as soon as possible, to make sure they are implemented on time.
  9. Review ADP’s Year End Forms to determine which you need to submit. Be sure to pay attention to due dates. Note: ADP updates its payroll program to align with any legislative changes that may have occurred. Information regarding taxation rates, CRA & RQ payroll deduction formulas, and overall legislative changes can be found on the ADP Year End site.
  10. Communicate legislative changes to your employees and stakeholders (IT, HR, Finance).
 

Done
  1. Celebrate completing Year End.