Payroll year-end checklist for Canada

Check off the list below as you complete each task, or click a task to learn more:

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 from your bank account to the amounts on your payroll wage and tax report.

Learn more about year-end accounting.

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

Unless your employee is exempt, EI premiums and CPP contributions should be deducted from each pay. For help confirming or correcting EI and CPP contributions, see these government resources: Calculate CPP contributions and Correct deduction errors.

To verify EI rates, see this government resource: EI premium rates and maximums.

To verify CPP rates, see this government resource: CPP contribution rates, maximums and exemptions.

Add missing benefits or deductions

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

If you have already approved your final payroll for the year, our Support Team can help add missing benefits and deductions. Open Mave, Wave’s automated chatbot, and type human support missing benefits, then provide the employee name, deduction or benefit to be added, and the amount.

Review business structure changes

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

Ensure that wages reflected on year-end forms only include wages paid under the new CRA Payroll Account Number.

Preview T4 slips

Preview your T4 slips to make sure you’ve entered correct wages, benefits and employee information. Learn more in How and Why to Preview T4 Slips.

Review important direct deposit dates

Payrolls and direct deposits do not process on Federal bank holidays. If a bank holiday falls on the day you normally approve payroll or pay employees, you must approve payroll at least one business day earlier. Below are bank holidays for 2025 year-end:

The last day to approve a direct deposit payroll with a 2025 pay day is December 22, 2025.

Review T4A contractor information

A contractor will only receive a T4A slip if they are listed as a T4A contractor in Wave. 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 all contractor information for accuracy.

Review contractor bills and bill payments

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

Wave does not generate Form T5018 Statement of Contract Payments. For more information, see this government resource: T5018 slip – Statement of contract payments.

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.
5. 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.
6. 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.
7. Edit any additional information, then click Save.

Confirm your deposit frequency for the upcoming tax year

December 2025: Review notices received before the end of 2025 from the Canada Revenue Agency (CRA) with updates to your business's remittance deposit frequency. To update your remittance frequency, update your business tax profile, and make the effective date January 1, 2026.

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Review key dates

Early February: T4 Slip generation is available in Wave.

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

February 28: This is the last day to submit T4/T4A summaries and T4/T4A slips to the CRA.