Make it zen: Tips for a smooth payroll year-end

Oh, payroll year-end. On one hand, it’s a great time to wrap up your organization’s calendar year and start fresh. On the other hand, it’s an endless list of year-end payroll processing to-dos and up-to-the-minute adjustments.

Hopefully, you have modern payroll software a reliable payroll system to help you with the heavy lifting of the payroll process. Either way, there are always payroll processing tasks that need your attention. To ensure your year-end payroll processing is smooth and stress-free, we’ve prepared a list of ways to help you plan and complete all your essential payroll processing tasks to close out the year like a pro and start your new year on the right foot.

With a little bit of planning and a good dose of self-care, you’ll come through like a champ. Here’s how:

Plan ahead

The key to a headache-free payroll year-end is all in the prep you do beforehand. It’s like painting a room. All that extra time and effort you put in on cleaning and taping at the beginning will save you hours of frustration later on.

To save yourself some time this year, start with a solid plan. We can help! Check out our payroll year-end checklist for a round-up of all the tasks and timing needed to get your year-end payroll processing on track, using your HCM payroll system to stay organized.

Get your facts straight

Now’s the time to tie up any loose ends. To get a strong start on payroll year-end, you want to be sure you’re working with the correct information.

Whether it’s just you or you’re working with your HR team, take the time now to verify that all employee records are up-to-date. Double-check to see if there have been any departures, and make sure your payroll system is accurately updated. Always confirm that social insurance numbers are reported correctly.

Reconcile early

Even if you’re reconciling payroll before each cycle, you’ll still need to do a more thorough audit at the end of the year. This is easier if you’ve been consistent, as the chances of errors drop. However, mistakes can still slip through the cracks, and you’ll need to identify them before creating year-end reports, filing payroll tax documents to the CRA, and sending payroll tax slips to your employees, as all wages and payroll deductions for the year must be accurate.

Review your payroll processes & reports

Take the time to review your HCM payroll software setup to ensure your employees’ earnings, taxable benefits, and payroll deductions are programmed accurately.

It’s helpful to have HCM payroll software that can readily pull data for you. With Avanti’s HCM payroll system, you get advanced reporting capabilities with a library of 175+ standard reports and custom reporting at no extra cost. Plus, automatic scheduling for sending reports. Features like this are super helpful when you need quick access to your data.

Set your employees up for success

Like any other payroll professional, you probably receive numerous requests for information around T4 time. To get ahead of those queries this year, get your team up to speed on your payroll process.

Send an email letting them know when they can expect their T4 form and where they can find it when it’s ready. If you have employees working from home, let them know they will receive a T2200 form (now is also the time to get those T2200s ready).

Some of your employees may need more information on how to read their T4s. Be sure to include our employee guide in your email to help them navigate their payroll tax paperwork. You’ll be surprised at how much one email can reduce the number of requests that roll in.

Keep in touch with your community

Payroll year-end isn’t a sprint; It’s a marathon that will keep you on your toes for the next few months. That’s why it’s crucial to take breaks and recharge whenever you need to. Here are some self-care methods to help you stay calm, cool, and collected during this time:

Eat well & stay hydrated: This is not the time to throw healthy eating habits out the window. Meal prep when you know you have a busy week ahead of you. Keep menus on hand for all your favourite healthy takeout options, and drink plenty of water. 

Get moving: Need an energy boost? Take the time to fit some physical activity into your day. Visit your local gym, go for a swim, take a nature walk, hit up a yoga class, or stream a workout at home. Any of these activities will help increase your energy levels, reduce stress, and elevate your mood.

Go offline: Taking on the additional workload of payroll year-end can be exhausting. When you’re feeling bogged down during your workday, be sure to give yourself a screen break.

Keep up with sleep: Good sleeping habits are essential to staying healthy and productive. To make your sleep as restful as possible, try using a meditation or a sleep app, keep your room cool and dark, and diffuse relaxing essential oil in your room before bed.

Treat yo' self: A great way to stay motivated and take a few breathers during payroll year-end is to set goals and treat yourself when you hit those milestones. 

Tax slips done and ready? Get a massage. Checklist accomplished? Order in. Email sent to the team? Grab a bath bomb and enjoy a relaxing bath.

Remember, it’s not selfish to take care of yourself — it’s necessary.

Final step: Rock payroll year-end

There you have it. Now you are all set to master payroll year-end.

You’ve got the tools, checklists, and your HCM payroll software to get prepped and the right mindset to take care of yourself along the way. All you need to do now is stay organized and practice self-care as you go on. We’re rooting for you!

Additional Reading Links

1. Everything you need for 2024 year-end
2. The Ultimate Guide to Canadian Payroll Year-End
3. The employee guide to Canadian payroll year-end

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