Does payroll have to be completed before I start a New Year. Think that I have completed, but am not ready to run T4's etc. and I need to do payroll this week for New Year. My understanding is that once I have opened a New Year, I can still make changes to 2010 payroll, but have to do deduction calculations manually. Is that correct??
Hi there: You should have your final payroll for 2010 done and complete before rolling forward to a new year. Print out the Employee Detail report for the calendar year Jan. 1 to Dec. 31, 2010, and also the Employee Summary Report for the same calendar year. Do this before rolling forward to a new year. Use the Employee Detail Report to confirm that your EI and CPP deductions for employees are all correct for the year. Also, always do a backup of your books, and a Save a Copy to another file in your computer somewhere if you want, before rolling forward to a new calendar year.
I believe you could still make changes to payroll but the only date you would be able to use would be Dec. 31, 2010. And you are right, you will no longer be able to do any "automatic" calculations. Therefore you would not be able to go back and "adjust" a payroll and still be able to have the system adjust to the correct deduction amounts. So, long and short of it is be sure you have entered your final payroll for the 2010 year before rolling forward. You do not have to do T4's yet. They can still be done later. Rita Deering
Just to clarify, are you recording payroll transactions that have already been paid, or distributing back-dated cheques? If so, yes you should enter them before you start a new Year.
T4s are by pay-date, so If you are actually paying wages and salaries after the end of 2010 calendar year, it should go on the 2011 T4, so you should do it after you start the new year.
For accounting purposes the expense is part of 2010, but wages and salaries paid in 2011 belong in the 2011 payroll year, and not on the 2010 T4. So it's perhaps easiest to estimate the last pay of the year for hourly and pay it before year-end.
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