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Canadian Payroll Year End Tips - Less Than 2 Months to go and Counting

Submitted by OnPayroll.ca on Mon, 2011-11-14 12:26
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balancePIER Reports - (Pensionable Insurable Earnings Review)

It is always best practice to regularly check throughout the year to see if your Canada Pension Plan/Quebec Pension Plan and Employment Insurance/Quebec Parental Insurance plan premiums are in balance. If you are a client of OnPayroll.ca, then we automatically do this for you as a part of our regular service.

If the numbers are in balance, then you should have no worries. If they are not in balance, then you will receive a PIER report from CRA and/or Revenue Quebec after you have filed your T4s or RL1s requesting explanations for the discrepancies. If you have been a client of OnPayroll.ca throughout the year you should not receive such a report, but if you have started using our services during the year - you may receive the report, which you should pass along to us and we will complete the report free of charge.

Many other service bureaus do not provide this service.

T4 Changes

Beginning this year (2011) - if you are completing your own T4s, you need to note that you now must always complete box 24 for EI Insurable Earnings and box 26 for CPP Pensionable Earnings. Previously, these boxes could be left blank if the employee was at the annual maximum or the amounts were the same as box 14 - employment income. OnPayroll.ca ensures all boxes are completed correctly for their clients.

Statutory Remittances

As a normal part of year end, and throughout the year, you should always ensure that the remittances you have made agree with what CRA/RQ (Quebec) says they have received. The CRA issues monthly statements, and RQ issues an annual statement in the fall.  Again, if you are not using OnPayroll.ca, you need to check the balances with what you have remitted, not only to ensure that the government agencies have recorded the correct amount, but also to check to ensure that they haven't assessed any interest or penalties which may reduce the amounts you think you have sent in.

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Note: Many Service bureaus do not provide the above mentioned services, so if you are in doubt - make sure to ask. If you are not receiving these services, you may end up paying penalties needlessly.