Payroll Year End - Canada
Now that the holidays are behind us, all our payroll focus tends to turn towards the ever-looming year end. We’ve been doing small things to prepare for year end all year long, yet we know that there is always a bump in the road ahead of us. The keys to smoothing out any potential bumps is organization, communication, and giving ourselves plenty of time to get our tasks completed. It may be helpful to bring in an extra person part time to help handle the day-to-day tasks while you focus on year end, or bring in a year end expert to help you manage all the little things that will come up. But we don’t all have this luxury, so here are some tips to help you manage the year end workload more efficiently.
Organization starts with a good checklist. A good checklist will detail all the tasks that need to be completed, by whom, and by when. Try to spread out the tasks and leave yourself some cushion when determining deadlines. It’s inevitable that things will happen and tasks will be late.
One of the luxuries we do have in Canada as opposed to the US is that our T4s and RL1s do not need to go out until the end of February, but there are many things that make the T4s and RL1s a bit trickier than a US W2. Often, we need to wait to receive final year end numbers for taxable benefits from third party providers. Developing a good relationship with these third party vendors can help make the process between the two of you run a lot more smoothly. It is important to clearly define deadlines with the vendors to ensure you get your information in enough time to make the necessary adjustments. Make note of any days that they will be out of the office and be sure to touch base before and after they are gone.
Much like third party vendors, we often need to rely on other departments within our own company to get us information that is necessary to produce the year end tax forms. Constant communication and short check-ins can go a long way in keeping your needs in the foreground for other departments. Again, clearly defined deadlines will get you your information in a timely manner. Be aware of the planned time off your key contacts in other departments have planned and make sure you touch base with them prior to them being out for the holidays. As soon as they are back in the office, check in with them and remind them of any outstanding items you may need. It may sound like you’ll be nagging them, but if you keep the reminders to a minimum by cleverly timing them, you won’t be a nag at all!
It may sound crazy but try to make year end fun for your team. So often payroll departments get a little down about not being able to take as much time off around the holidays as other departments to spend time with their families. If you are able, give them a little extra time off here and there to give them a little boost. If you are in person, do something fun as a group while you are working in the office with most of the company not around. Things as simple as bringing in lunch or making cookies for everyone can go a long way. Boosting the morale of your team will give you a little extra boost in the process. And a little extra boost will help you feel more motivated to complete your year end tasks.
Good luck on your year end processing! If you want more information on a checklist or other tasks, contact us.