Payroll Year End and New Year Checklist

It is recommended that you review payroll information periodically throughout the year. It is especially important to review payroll information prior to the final payroll transaction date (pay date) of the calendar year because it is the last opportunity before the calendar year end to make any required corrections or amendments to ensure the YTD totals are accurate.

 

Follow the relevant USA or Canada checklist below:

USA

BEFORE Processing the Last Payroll Run with a Transaction Date within the Current Calendar Year

STEP	MENU	NOTES
Remind employees to complete a new W4 for the coming year.	Employee Profile Menu -> Messages (Optional)	This is necessary especially if the employees' situation has changed. Remind employees early to allow time to complete and submit the W4 Allowance Certificate prior to the new calendar year. One way to do this is to send messages through the Profile Menu -> Messages.
Review Tax and Benefit Data	Payroll -> Taxes & Deductions	Ensure that applicable employee benefits such as vehicle mileage, tip allocation information and child care benefits, allowance or expense reimbursements are included properly and are up-to-date. Determine whether certain pay items are considered taxable fringe benefits and make sure the appropriate taxes are deducted. If the appropriate withholding tax has not been made, make any adjustments and ensure it is correct going forward.
Review Wages and Accruals	Employee -> Employees, Wage tab and Accrual tab	Review accruals, wages and benefit levels, sick and vacation pay settings. Make any required changes through Pay Stub Amendments or Adjusting a Closed Pay Period if applicable.
Update Employee Statuses (if applicable)	Employee -> Employees	Ensure all employees that are no longer employed by the company have been terminated. See Employee Termination Process.
Process Year End Bonuses (Optional)	Payroll -> Pay Stub Amendments	If you choose to pay year end bonuses, process them using Pay Stub Amendments. For out-of-cycle pay stubs see Generate Bonus/Correction (Out-of-Cycle) Pay Stubs.

 

Process the Last Payroll Run with a Transaction Date within the Current Calendar Year ensuring pay stub amendments for all necessary corrections have been added.

 

AFTER the Last Payroll Run of the Calendar Year, But BEFORE the First Payroll Run of the New Calendar Year

STEP	MENU	NOTES
Review Employer Data	Company -> Company Information Company -> Legal Entities Payroll -> Remittance Agencies	In preparation for processing annual tax events, verify that employer data such as, employer name, address and EIN/ID numbers is accurate.
Review Employee Data	Employee -> Employees	In preparation for processing annual tax events, verify that employee data such as, employee names, addresses and SSN for all employees who received pay within the calendar year is accurate.
Update Employee Settings for the New Calendar Year	Employee -> Employees, Wage, Tax and Accrual tabs	Make sure the wages, tax/deductions, sick time and vacation settings are all updated to reflect any changes for the new calendar year.
Adjust Employee Withholding Allowances	Payroll -> Taxes/Deductions, Employee Settings tab	Refer to Federal (W4)/State Allowance Certificates for the new calendar year and make the necessary changes.
Confirm Tax Deduction Rates are Updated	Payroll -> Taxes/Deductions	While TimeTrex will automatically update most federal and state tax rates, some rates are specific to individual companies or certain localities such as unemployment insurance, workers compensation, local and school district tax rates and may need to be updated.
Verify Pay Period Schedules	Payroll -> Pay Period Schedule	For Weekly or Biweekly Pay Period Schedules if the new year has a different number of pay periods i.e. Weekly (52/year) or (53/year), Biweekly (26/year) or (27/year), edit the Pay Period Schedule and change the Type to match the appropriate value. This will affect salaried employees especially, e.g. an employee receiving an annual salary of $52,000/year in a year when there are 52 weekly pay periods will be used to receiving $1000/week, however that same employee will receive slightly less pay per week ($981/week) in years when there are 53 weekly pay periods or one extra pay period in the year.
Confirm Tax Wizard Event Dates are Accurate for the Coming Year	Payroll -> Tax Wizard	Confirm that the Start Date, End Date and Due Dates for Tax Wizard Events are accurate for the coming year. Edit Remittance Agencies if changes are necessary.

 

Process the first Payroll run of the New Calendar Year

 

CANADA

BEFORE Processing the Last Payroll Run with a Transaction Date within the Current Calendar Year

STEP	MENU	NOTES
Remind employees to complete a new TD1 for the coming year.	Employee Profile Menu -> Messages (Optional)	This is necessary especially if the employees' situation has changed. Remind employees early to allow time to complete and submit the TD1 Personal Tax Credits Return prior to the new calendar year. One way to do this is to send messages through Employee Profile -> Messages.
Review Tax and Benefit Data	Payroll -> Taxes & Deductions	Ensure that applicable employee benefits such as vehicle mileage, tip allocation information and child care benefits, allowance or expense reimbursements are included properly and are up-to-date. Determine whether certain pay items are considered taxable fringe benefits and make sure the appropriate taxes are deducted. If the appropriate withholding tax has not been made, make any adjustments and ensure it is correct going forward.
Review Wages and Accruals	Employee -> Employees, Wage tab and Accrual tab	Review accruals, wages and benefit levels, sick and vacation pay settings. Make any required changes through Pay Stub Amendments or Adjusting a Closed Pay Period if applicable.
Update Employee Statuses (if applicable)	Employee -> Employees	Ensure all employees that are no longer employed by the company have been terminated. See Employee Termination Process.
Process Year End Bonuses (Optional)	Payroll -> Pay Stub Amendments	If you choose to pay year end bonuses, process them using Pay Stub Amendments. For out-of-cycle pay stubs see Generate Bonus/Correction (Out-of-Cycle) Pay Stubs.

 

Process the Last Payroll Run with a Transaction Date within the Current Calendar Year ensuring pay stub amendments for all necessary corrections have been added.

 

AFTER the Last Payroll Run of the Calendar Year, But BEFORE the First Payroll Run of the New Calendar Year

STEP	MENU	NOTES
Review Employer Data	Company -> Company Information Company -> Legal Entities Payroll -> Remittance Agencies	In preparation for processing annual tax events, verify that employer data such as, employer name, address and Business/ID Numbers is accurate.
Review Employee Data	Employee -> Employees	In preparation for processing annual tax events, verify that employee data such as, employee names, addresses and SIN for all employees who received pay within the calendar year is accurate.
Update Employee Settings for the New Calendar Year	Employee -> Employees, Wage, Tax and Accrual tabs	Make sure the wages, tax/deductions, sick time and vacation settings are all updated to reflect any changes for the new calendar year.
Adjust Employee Withholding Allowances	Payroll -> Taxes/Deductions, Employee Settings tab	Refer to Federal (TD1)/Personal Tax Credits Return for the new calendar year and make the necessary changes.
Confirm Tax Deduction Rates are Updated	Payroll -> Taxes/Deductions	While TimeTrex will automatically update the Federal and Provincial tax rates, some rates are specific to individual companies such as workers compensation and may need to be updated.
Verify Pay Period Schedules	Payroll -> Pay Period Schedule	For Weekly or Biweekly Pay Period Schedules if the new year has a different number of pay periods i.e. Weekly (52/year) or (53/year), Biweekly (26/year) or (27/year), edit the Pay Period Schedule and change the Type to match the appropriate value. This will affect salaried employees especially, e.g. an employee receiving an annual salary of $52,000/year in a year when there are 52 weekly pay periods will be used to receiving $1000/week, however that same employee will receive slightly less pay per week ($981/week) in years when there are 53 weekly pay periods or one extra pay period in the year.
Confirm Tax Wizard Event Dates are Accurate for the Coming Year	Payroll -> Tax Wizard	Confirm that the Start Date, End Date and Due Dates for Tax Wizard Events are accurate for the coming year. Edit Remittance Agencies if changes are necessary.

 

Process the first Payroll run of the New Calendar Year