The end of the year is approaching and working through the Year-End Payroll Process is back on the top of our agendas. Year-end payroll processing involves assessing taxes, compensation, and deductions in employee salaries while validating your organization’s payroll and tax compliance with the most recent regulations. This process occurs throughout the fourth quarter of the calendar year and into the first two months of the following year. At IN-RGY, we believe that the key to navigating through this hectic year-end period is to plan ahead. If your organization’s information is not compliant with federal, provincial and/or territorial regulations, your corporation will most likely be subject to fees and regulatory costs. Year after year, organizations face obstacles relating to lack of internal expertise, skilled resources, bandwidth or other.
This year, we have created a checklist for SAP Payroll to help you navigate through the Year-End Payroll Process, so you can ease out of this year and enjoy a clean start into the next!
Download the full Year-End payroll overview for Canadian businesses by clicking on the image below or here
1. Planning Year-End Activities
> Objective: To re-evaluate any necessary updates from previous year processes, understand the additional lift that will be required from your team, and establish a clear working plan for your organization’s Year-End Payroll Process.
> Steps:
Consider revising your current plan to reflect the following*:
*Dependent on your landscape and conditions
> Consider:
> Opportunities for Learning:
2. Prepare Start-of-the-Year Enhancements
> Objective: To set up the payroll system for next year’s operations and stay updated with federal, provincial and/or territorial regulations.
> Steps:
Once the government has released this year’s regulations, you’ll find the latest updates on the links below.
> Consider:
> Opportunities for Learning:
3. SAP Support Pack Installation, Testing & Validation for Start-of-Year
> Objective: To implement legal and technical updates provided by SAP into the system and ensure your information complies with all regulations, including reporting regulations.
> Steps:
> Consider:
> Opportunities for Learning:
4. Year-End Preparation and Testing
> Objective: To verify that your payroll balances and deductions were calculated accurately throughout the year and that your organization’s information is compliant with all regulations.
> Steps:
> Consider:
> Opportunities for Learning
5. Execute Year-End Reports and Submit Forms
> Objective: To fill the legal requirements and inform the Canada Revenue Agency (CRA), provincial/territorial entities about taxation and provide your organization’s employees with the required information for their personal tax returns.
> Steps:
> Consider:
> Opportunities for Learning:
Due to the lack of skilled resources throughout the industry, our recommendation is to plan your year-end payroll process strategy ahead of time and start preparing as soon as possible.
If you have any questions about the above or need support in your Year-End Payroll Process, don’t hesitate to reach out to our team at any time. At IN-RGY, we have a team of skilled consultants have diverse HR-focused expertise, from working either at SAP or in HR on the client side, that are dedicated to helping you close the year off on a high note and ensure you are ready for 2023!
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