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Intuit

Payroll year-end checklist

Complete this checklist to ensure you're finishing all of your year end activities in QuickBooks Desktop with correct payroll information for your employees.

Complete before generating forms

Install the latest payroll tax table updates

Turn on Automatic Updates for QuickBooks Desktop Payroll

The best way to make sure you have the latest QuickBooks Desktop and payroll updates is to turn on the Automatic update feature, which tells QuickBooks to check for new payroll updates automatically. Automatic Updates is the easiest way to stay on track with updates.

Since the actual dates of payroll updates vary depending on federal and provincial actions, we highly recommend that you check for payroll updates each time you pay your employees (or at least every 45 days) to ensure that you have the most current tax table and forms available.

Order year-end supplies

To order your year-end supplies from Intuit:

Intuit recommends you order your year-end supplies as soon as possible to ensure timely delivery and distribution.

Verify active employee data

The end of the year is a good time to review employee information that can affect T4 forms and, possibly, pay cheques issued in the next tax year. Be sure to check:

  • Names, addresses, and social insurance numbers
  • Retirement plan eligibility
To review employee data in QuickBooks Desktop:
  1. Go to the Employee Centre and click on the Employees tab.
  2. Click the drop-down list below the Employees tab.
  3. Double-click on the employee name to review the names, addresses and Social Insurance numbers for any errors or missing information.
  4. Click the Payroll Info tab.
  5. Make any changes necessary and save the changes by clicking OK.

Perform any year-end bonuses

To write a bonus check for an employee:

  1. Go to the Employee Centre and click the Payroll tab.
  2. Click the Pay Employees tab, and in the Create Pay cheques section, click Start Unscheduled Payroll.
  3. In the Enter Payroll Information window, select the employee to whom you're giving a bonus.
  4. Click Open Pay cheque Detail.
  5. In the Item Name field, add the bonus item, and enter the amount of the bonus in the Rate field.
  6. Click Save & Next or Save & Close.
  7. Click Continue.
  8. Click Create Pay cheques.

Verify terminated employee data

Regardless of the current employee status, any employee who received a pay cheque during the year will receive a T4 form for that year.

Be sure to check terminated employees for:

  • Names, address, and social insurance numbers
  • Retirement plan eligibility

Be sure that terminated employees are released correctly in QuickBooks.

To verify that terminated (released) employees are set up correctly:

  1. Go to the Employee Centre and click on the Employees tab.
  2. Change the View to All Employees.
  3. Click the name of the released employee.
  4. Click the Transactions sub-tab.
  5. Double-click the termination (typically the last) pay cheque and click Pay cheque Detail. Ensure all vacation and sick time has been paid out.
  6. Close out of the pay cheque. Do not save any changes. If you need to pay out vacation or sick time, create a new cheque for this amount and deliver to the employee.
  7. Double-click the name of the released employee to access the Edit Employee window.
  8. Click the Employment Info tab.
  9. Verify that all information is current and that the Release date is correct and an ROE Code is entered
  10. Click OK to close the Edit Employee window.

Verify and review benefit information for your employees

Before you create pay cheques in the new tax year, confirm that all compensation and benefit types are correct, and that the rates for each is correct.

To review benefit information:

  1. Go to the Lists menu and click Payroll Item List.
  2. Double-click the item to review the setup.
  3. Click Finish to save any changes you have made.

To review any benefits that has been added to the employee defaults or to an individual employee record:

  1. Go to the Employee Centre and click on the Employees tab.
  2. Double-click the employee name
  3. Click the Payroll Info tab.
  4. Review the information in the Additions, Deductions, and Company Contributions section. If you need to edit the information, click in the field and make the edit and then click OK.
  5. Click OK to save your changes.

Any future pay cheques created for that employee will include the new information.

For more information about benefits limit and contribution deadlines, visit the CRA website.

Review employee wages, sick time, and vacation hours

Review wages and benefit levels.

Before your first payroll of the new year, you may want to take the time to review wages and benefits for all active employees. To do so:

  1. Go to the Employee Centre and click on the Employees tab.
  2. Double-click the name of an employee to access the Edit Employee window.
  3. Click the Payroll Info tab.
  4. Ensure the items, rates, and limits are correct in the Earnings and Additions, Deductions and Company Contributions sections.Click the Vacation Pay button and review the settings.
  5. Click OK to close the Edit Employee window.

Review sick and vacation settings.

To review sick and vacation hours for an employee:

  1. Go to the Employee Centre and click on the Employees tab.
  2. Double-click the name of an employee to access the Edit Employee window.
  3. Click the Payroll Info tab.
  4. Click the Vacation Pay button and review the settings.
  5. Click OK to save any changes and close the Vacation window.
  6. Click the Accrual Hours button and review the settings for accrued sick time.
  7. Click OK to save any changes and close the Accrual Hours window.
  8. Close the Edit Employee window.

Generating Year End forms

Important Dates

The deadline for T4, RL-1, T4A, and T5018 forms is the last day of February, which could fall on the 28th or 29th, depending on the year.