One of the most important things an employer can do is ensure employees get paid accurately and on time. But it’s not as easy as just writing a cheque. There are bonuses, vacation pay and other benefits, taxes and other source deductions. There are timelines and deadlines, regular rates and premium rates, and recording, reporting and remitting obligations. There are government programs to encourage hiring, training, retaining, retraining…
This year there are big changes to income tax thresholds in Alberta and federally (in force January 1, 2016), new source deduction remittance rules, increased minimum wages, a reduced TFSA limit, updated record of employment requirements and other important changes for 2016.
In addition, organizations that hire younger workers into permanent positions in 2016, 2017 and 2018 will get a 12-month break on their employment insurance premiums under a new federal plan.
HR pro Marcia Sheffler offered a very handy 10-step year-end/new-year payroll checklist that should help any organization stay on track. She recommends you:
- Verify active employee data
- Perform any year-end bonuses
- Verify terminated employee data
- Verify and review that you have the correct employee deductions
- Review employee wages, sick time, and accrued vacation
- Verify and review employee benefits paid out
- Prepare the pay schedule for 2016
- Complete a T4 slip for each employee
- Complete and remit a T4 Summary form
- Know your payroll rates for the coming year
Still need help?
Payroll is challenging enough without constant change, but that’s why we publish the annual Employer’s guide to Canadian payroll.
Written by Yosie Saint-Cyr, LLB, and published by First Reference, this compliance and best practice guide is organized for maximum efficiency and features exclusive commentary on key issues like source deductions and income tax, bonuses, benefits, pensions, ROEs, filings and remittances.
With our guide, you’ll learn:
- What’s required to start payroll administration
- Tax forms and record-keeping obligations
- The payroll implications of hiring and firing employees, plus required documents
- Current payroll rates, minimum wages, rules, deadlines and more
You can review the table of contents and a brief sample of the payroll guide here.
And don’t forget you can always find discussion of important payroll topics right here on First Reference Talks!