QuickBooks Online year-end tasks

At the end of the calendar year, it's important to perform certain tasks to keep your financial records accurate and compliant with government requirements. This guide provides an overview of the key tasks to complete between December and February.

Note for Desktop users: If you use QuickBooks Desktop, please refer to the year-end guide for QuickBooks Desktop here.

Tasks by month

The year-end process is spread across three months to make it more manageable. Each month has a specific focus:

• December tasks: Focus on preparing for the end of the year by reviewing customer statements, counting inventory, and making any necessary payroll adjustments.
• January tasks: Reconcile your accounts, prepare summary reports, file sales tax, and close your books for the previous year.
• February tasks: Finalize your year-end by preparing tax slips for employees and connecting with your accountant.

Reminders for tax filing

Here are some considerations to keep in mind as you head into tax filing season:

• CPP2 and QPP2: In 2024, new maximum pensionable earnings contributions, called CPP2, and QPP2 (for Québec), were added. Employees and employers must make extra contributions if the employee’s earnings go above the first earnings limit.
• Canadian Dental Care Plan: The Canadian Dental Care Plan requires employers to report dental coverage details on T4s and T4As.
• New electronic filing requirements: If you’re filing six or more tax slips of the same type, you’ll need to file electronically on the CRA or Revenu Québec website.
• New electronic filing requirements for Revenu Québec: To file RL-1s electronically, you'll need a Transmitter Number and a range of Sequential Numbers from Revenu Québec set in your payroll settings.
• Download RL-1s as XML files from QuickBooks: Starting in mid-January, download RL-1 slips as XML files from QuickBooks so you can submit them electronically to Revenu Québec. This capability is already available for T4s.

Preparing for a new calendar year

Review the following details and make any updates before your first payroll of the new calendar year:

• If your workers’ comp rates have changed, update it in your payroll settings.
• If your remittance schedule has changed, update it in your payroll settings.
• If you have employees with a custom withholding amount for income tax, remind them to complete a new TD1 form (TP-1015.3 forms for QC). Forms will automatically be updated for employees with the standard amount.

Payroll tasks

If you use QuickBooks Online Payroll, you can find a detailed year-end guide by selecting Payroll from the left menu and then selecting Payroll year-end guide.

If you use a different payroll provider, consult them for the specific items and forms you need to complete for the end of the year.

Review these important direct deposit cut-off dates as you plan your year-end payroll work:

* Payroll should be dated on the preceding business day, because the payroll date listed falls on either a weekend or a holiday.

Dates to remember

As you work through your year-end plan, don't forget these important dates for your T4 and RL-1 forms.

• January 1, 2025: T4s and RL-1s are available in QuickBooks Online Payroll.
• January 13, 2025: Electronic filing options are available online with Canada Revenue Agency and Revenu Québec.
• February 29, 2025: The deadline to export your T4 file from QuickBooks Online Payroll and submit T4s and RL-1s with the CRA and Revenue Quebec. You also must provide your employees a copy for their own records, which they use to do their personal income tax. These can be sent to your employees through the QuickBooks Workforce portal.