If you’re reading this, you’re probably already knee-deep in year-end. Your inbox is overflowing and somewhere in the back of your mind you’re mentally calculating how many espressos it’ll take to get through February.
We get it. Year-end is always intense, but it doesn’t have to be complete chaos.
The difference between a manageable year-end and a brutal one? Getting the right information from your clients before you need it. When clients show up prepared—with accurate data, organized records, and all the details you actually need—you can focus on doing what you do best instead of chasing down missing information.
Consider this your year-end client communication template.
1. Update employee information.
Before issuing T4 slips, employee data needs to be current and accurate. Ask clients to review the following for every active or terminated employee employee who received pay during the year:
- Legal name (matching SIN documentation)
- Address of residence
- Social Insurance Number (SIN)
- Date of birth (affects pensionable earnings)
- Termination or on-leave dates for inactive employees
- Province of employment (affects payroll tax calculations)
- Paid time off (PTO) and vacation accrual balance per employee
Pro tip: This is also the perfect time to have clients distribute new TD1 and TD1 provincial forms for active employees. Fresh forms mean accurate deductions
While reviewing employee data, remind clients to communicate any payroll changes that affect their team:
- Educating them on upcoming source deduction maximum contributions for EI, CPP/CPP2, QPP, QPIP, etc.
- Holiday closures
- Vacation blackout or roll over updates
- Paid time off (PTO) or sick pay accrual resets
- Updates to employee policies or handbooks
- Changes to group benefits (if applicable)
2. Provide the following payroll reports and information.
A complete picture of payroll activity ensures accuracy, compliance, and early detection of potential issues. Clients make retroactive adjustments, fix errors from three months ago, or suddenly remember that bonus they paid in July. It’s always a good idea to capture the year in full by requesting:
- Year-to-date payroll summary report – Ensures all earnings, deductions, and employer contributions are complete and accurate before preparing T4s.
- Detailed payroll registers – Provides transaction-level detail needed to verify that individual pay periods match year-end totals.
- List of corrections or adjustments made– Confirms that any previously corrected amounts (such as taxable benefits, vacation payouts, or deduction errors) are properly captured in final year-end reporting.
- List of outstanding payroll-related payments (ex. paycheques, employer tax payments such as EHT or WorkSafe, or other third-party remittances) that have not cleared the bank as of December 31. This helps validate payroll liabilities and ensures that expenses and remittances are recorded in the correct period.
- Canada Revenue Agency (CRA)/Revenu Québec (RQ) and provincial tax agency reports, notices, and mail:
- Worksafe (ex. WSIB/WCB)
- Employer provincial taxes (ex EHT, HE Levy, HAPSET)
- Garnishments, orders, or requirements to pay
- Source deduction remittance and payment records
These reports ensure gross earnings, taxable benefits, deductions, and employer contributions match what will appear on T4 slips and the T4 Summary.
Pro tip: If your client switched payroll systems during the year, ask them to provide reports from all systems used to avoid missing income or deductions.
NOTE: The CRA made changes to paper mail delivery in 2025, be sure to have your clients check their online mail account for important information and notices.
3. Compile records of taxable benefits, allowances, and pensions.
Employee benefits often create the biggest headaches at year-end, especially if they were tracked informally or without full compliance knowledge. It is always a good idea to ask your clients for details or annual statements for the various types of benefits provided, including:
- Employer-paid health or dental statement
- Employer-paid life insurance statement
- List of company vehicles and names of employees who had access to them.
- List of gift cards or non-cash gifts given to employees including purpose
- List of all taxable reimbursement types used for employees
- List of employer-provided parking (if applicable)
- List of housing or relocation allowances (if applicable)
- List with employee loan details (if applicable)
- Employer RRSP and pension statements
- Shareholder/owner benefits
Pro tip: The CRA requires that taxable benefits be included in the employee’s income for the pay period that it was received or enjoyed. If you need a refresher, check out our guides on common taxable benefit mistakes and automobile benefits.
4. Confirm contractor payments.
If your client paid self-employed contractors during the year, you’ll need to prepare T4A slips. Make sure you have:
- Contractor names and addresses
- Total amounts paid (with GST/HST broken out separately)
- Type of services provided
- GST/HST numbers if they billed GST/HST
Pro tip: Misclassifying employees as contractors can trigger CRA audits. Getting this right protects your client and saves you from being the one who has to untangle the mess later. Not sure what the differences are? We’ve got you covered with this guide.
5. Identify shareholder and owner payroll activity.
For incorporated businesses, shareholders often receive salary, bonuses, or dividends. If you don’t already have the information, ask clients to provide:
- Total salary or bonuses paid
- Taxable benefits charged to shareholder accounts
- Any personal transactions run through the corporation
- Deductions withheld or reimbursed
Since shareholder benefits have unique tax rules, accurate tracking and reconciliation ensures compliance.
6. Document any payroll or business changes from the year.
Changes in business operations can affect payroll reporting. Ask clients to provide details or changes that involve:
- Moving to remote or multi-provincial work arrangements
- Changes to payroll frequency
- Adoption of new software and integration changes
- Opening of new business locations
- Updates to employee policies and handbooks
These factors can change employment and labour standard impacts, plus a variety of payroll obligations including reporting, calculations, provincial health taxes, employment standards, and workers’ compensation.
Year-end preparation tips for a more manageable year-end.
You’ve survived enough year-ends to know what works, but here are a few reminders that might help you (and your clients) avoid the worst of the February crunch:
- Keep payroll data organized monthly, not just at year-end
- Use cloud-based payroll software that automates payments to employees, contractors, and government agencies
- Build in regular check-ins with clients to capture payroll changes as they happen
- Retain all payroll documents and receipts for at least six years (plus the current year)
- Schedule a pre-year-end review in December to catch issues before they become problems
Final thoughts.
Year-end doesn’t have to mean chaos. The more organized your clients are upfront, the smoother everything runs on your end. That means fewer last-minute panics, fewer corrections, and a lot less time spent chasing people down
If you need a system that makes collaboration easier and keeps payroll accurate without the manual headaches, Wagepoint is built for exactly that. Book a demo here and see how it works.
