It's really important that you notify your bookkeeper or update the frequency in your
payroll software as soon as you receive the notice from the government. The penalties
can be pretty severe for missed remittances.
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7. Provincial Taxes
Stating the obvious here, but any notices you get from the government are important.
Don't forget to update your company's Employment Insurance (EI), Quebec Parental
Insurance Plan (QPIP), Health Services Fund (HSF) or Employer Health Tax (EHT) rates
If you get reduced rates for EI, QPIP, HSF or EHT, you have to notify your bookkeeper or
payroll provider immediately so that there are no discrepancies at year-end.
8. Year-to-date (YTD) and Accrued Vacation amounts
The YTD amounts are mostly applicable for companies who are switching payroll
providers or systems. The YTD amounts have to be entered for all employees who are on
payroll, especially if they have been paid previously in the year. These amounts all tally up
at the end of the year and are reflected in the T4s / T4As.
Another thing to bear in mind is if the YTD amounts are incorrect, you might end up
overpaying taxes and other source deductions like CPP or EI.
You should also check accrued vacation amounts to make sure that the amounts match
up to what they should be for your employees. Typically, vacation is accrued at 4% of
your gross annual wages, but some employees might be accruing vacation at a higher
percentage, say 3-weeks, which works out to 6% of annual gross wages. You should also
ensure that any time taken as vacation time was reported and deducted from their
balances.
By following these eight steps, your year-end reporting should run smoothly for you and
your employees. Plus, you'll really minimize the risk of any penalties or discrepancies, and
that's always a good thing!
