As the hustle and bustle of December quickly approaches, many in our industry stop to review a mental checklist of end of year tasks. Included in this is payroll accuracy. This is of utmost importance as the T4 summaries and the associated T4s are prepared on a calendar year basis. Therefore all companies should take heed of this advice regardless of their own year-end date.
If you use the services of a payroll company or have in-house service, it is wise to go out with an email to all staff requesting changes in addresses over the year. Addresses show up on T4s and while an outdated address can be OK if the T4s are personally delivered to an employee, many are mailed and therefore risk not being delivered to the intended recipient. This simple task can result in less work in February when staff will approach you saying that they never received their T4. Make it an annual task to do a check of addresses now (in November) and update systems prior to Dec 31 st as an internal efficiency.
Payroll personnel may also want to review the pay dates at the end of the year to see when the last payday falls in 2012. This is the last time you will be able to correct any outstanding issues regarding employee payroll queries. Do you owe your employee OT? Does your employee owe you time? Are vacation accruals/pay up to date? Has retroactive pay been addressed? When are bonuses paid?
Finally, don’t forget to compute any amounts that should be included on BOX 40 – Other Taxable Allowances and Benefits. Any issue that affects the amount of income shown on an employee’s T4 should be reviewed NOW, not at the end of December when it may be too late to process or costly to perform another pay run.
For all the accountants and bookkeepers out there – have a look at the Statement of Accounts for Current Source Deductions form from the government for Oct which you should have received by now. Dos the year to date contributions reconcile to your GL accounts? If not, it is best to look into it now while there is still time to make adjustments on the Nov remittance, (due Dec 15 th). Not having the same record that the government has will prompt discrepancies on the T4 summaries and can also result in PIER reports needing completion later, not to mention payment by the employer required for any shortfalls!
Remember, when it comes to payroll, it is imperative that the T4s accurately reflect the true earnings and deductions of your employees. Following these simple steps will help ensure a clean and uneventful T4 run come February.