[Canada] Payroll year-end checklist

Use this checklist to track payroll year-end completed tasks, or click a task to find more information.

At a glance

Reconcile your books

Reconcile your books up to the end of the calendar year. Look for outstanding cheques and ensure all employee expense reimbursements are accounted for. Compare payroll tax withdrawals in your bank account to the amounts on your payroll wage and tax report.

View the Accounting year-end checklist.

Review approved payrolls

Review payrolls to ensure that:

• All employees paid within the calendar year have been reported
• All wages are reported accurately, including benefits and deductions
• Employee wages match EI premiums and CPP contributions

Deduct EI premiums and CPP contributions from each pay unless your employee is exempt or has already reached the yearly maximum. Use these government resources to confirm or correct contributions and verify rates:

• Calculate CPP contributions 
• Correct deduction errors
• EI premium rates and maximums
• CPP contribution rates, maximums and exemptions

Add missing benefits or deductions

If you have not yet approved the final payroll of the year, add any missing benefits or deductions to the final payroll. Learn how to add a deduction, bonus, or benefit.

If you have already approved your final payroll for the year, view how to amend an approved payroll period. For additional support, open Mave, Wave’s automated chatbot, and request a Support Agent.

Review business structure changes

Changes to your business structure mean you will have a new Canada Revenue Agency (CRA) Payroll Account Number. If you have changed your business structure, you would have submitted T4 slips with your old CRA Payroll Account number when the change happened. Learn more in What to do when your business structure changes.

Verify year-end forms only reflect wages paid under the new CRA Payroll Account Number.

Preview T4 slips

Preview T4 slips to verify you entered correct wages, benefits and employee information. Learn how to review your T4 Slips.

Review important direct deposit dates

Payrolls and direct deposits do not process on Federal bank holidays. If a bank holiday falls on your usual payroll approval or employee payday, approve payroll at least one business day earlier.

The last day to approve a direct deposit payroll with a 2025 pay day is December 24, 2025.

Review T4A contractor information

Contractors receive a T4A slip only you list them as a T4A contractor in Wave. Review all contractor information for accuracy. To update a contractor's profile:

1. Log in at waveapps.com.
2. On the left-side menu, click Purchases > Vendors.
3. To the right of the contractor, click the dropdown arrow, then click Edit.
4. Update the vendor type to T4A contractor.
5. Click Save.

Review contractor bills and bill payments

A T4A slip is required for payments totalling more than $500 in the year. Bill payments appear on T4A slips in the year they are recorded as paid. If a T4A slip or payment is missing, ensure the payment year is correct.

Wave does not generate Form T5018 Statement of Contract Payments. For details, refer to T5018 slip – Statement of contract payments on the CRA's website.

Update employee tax profiles for the upcoming tax year

If employee federal or provincial claim amounts are changing, employees must submit a new TD1 form to you. Otherwise, ensure tax details match the new year's basic exemption amounts. To review or change tax details:

1. Log in at waveapps.com.
2. On the left-side menu, click Payroll > Employees.
3. Click the name of the employee.
4. In the employee menu, click Tax Details.
   • If the total claim amount is the same as the Basic Personal Amount on the TD1 form, select the checkbox beside Use the Federal/Provincial basic personal amount.
   • If the total claim amount is different from the Basic Personal Amount on the TD1 form, unselect the checkbox beside Use the Federal/Provincial basic personal amount, then enter the total claim amount.
5. Edit any additional information, then click Save.

Confirm your deposit frequency for the upcoming tax year

In December 2025, review any CRA notices you receive before year-end for updates to your business's remittance deposit frequency. To update your remittance frequency, update your business tax profile, and set the effective date to January 1, 2026.

Review important dates

December 31, 2025: The final payday of 2025.

January 31, 2026: The last date to submit T4 adjustments.

February 3, 2026: T4 and T4A slip generation is available in Wave.

February 28, 2026: The last day to give T4 and T4A slips to employees and contractors. 

February 28, 2026: The last day to submit and file T4/T4A summaries and slips to the CRA. 

March 31, 2026: The last date to submit payroll tax filing amendments for the year 2025 in Wave.