Year-End Requirements
Complete CRA compliant year-end requirements management for Canadian businesses. Expert T4/T4A slip preparation, remittance schedules, and ROE filing.
Understanding Year-End Requirements for Canadian Businesses
Comprehensive CRA compliant year-end requirements ensure your business meets all Canadian tax filing and payroll reporting obligations accurately and on time.
The Complexity of Year-End Requirements
Canadian businesses face a complex array of year-end requirements that must be completed annually to maintain CRA compliance. These requirements encompass payroll reporting, tax document preparation, and various filings that are critical for both employee tax purposes and government record-keeping.
The period between December 31 and the end of February represents one of the most demanding times for Canadian businesses. During this window, you must complete numerous year-end requirements including T4 slip preparation for all employees, T4A slip preparation for contractors and pensioners, proper remittance schedules for payroll deductions, and Record of Employment filings for any separations.
Missing these CRA compliant deadlines can result in significant financial penalties. Late T4/T4A filings incur penalties of $10 per day per slip, with minimum penalties of $100 and maximums up to $7,500. Furthermore, failure to meet year-end requirements can trigger CRA audits and lead to additional scrutiny of your business operations.
Core Year-End Requirements Every Business Must Complete
Our CRA compliant guidance helps you understand and complete all essential year-end obligations.
T4 Slip Preparation and Filing
The most critical of all year-end requirements is preparing and filing T4 slips for all employees. T4 slips document the complete compensation picture for each employee, including wages, salaries, bonuses, commissions, and taxable benefits. These slips must be issued to employees and filed with CRA by the last day of February.
Professional T4 slip preparation involves calculating accurate amounts for Box 14 (employment income), Box 16 (employee CPP contributions), Box 17 (employer CPP contributions), Box 18 (employee EI contributions), Box 19 (employer EI contributions), and Box 24 (EI insurable earnings). Each figure must be calculated with precision to ensure CRA compliant reporting.
Our year-end requirements service handles T4 preparation with complete accuracy, ensuring all boxes are completed correctly and supporting documentation is maintained. This attention to detail prevents costly errors and employee complaints while maintaining full compliance with CRA regulations. Learn more about T4 slip preparation.
T4A Slip Preparation for Non-Employee Income
T4A slips represent another essential component of year-end requirements for businesses that pay contractors, consultants, pensioners, or other non-employee service providers. These slips report various types of income that aren't covered by T4 slips but must still be reported to CRA.
Common T4A slip preparation scenarios include payments to independent contractors, consulting fees, pension and annuity payments, research grants, and self-employment income. Each payment type has specific reporting requirements that must be followed to maintain CRA compliant status.
Our comprehensive year-end requirements expertise identifies all situations requiring T4A slips and ensures accurate reporting. We help you understand which payments must be reported and prepare compliant documentation that meets CRA standards. Learn more about T4A slip preparation.
Payroll Remittance Schedule Management
Throughout the year, businesses must adhere to specific remittance schedules for withholding and remitting payroll deductions to CRA. The correct remittance frequency depends on your average monthly withholding amount (AMWA), and understanding your classification is fundamental to meeting year-end requirements.
Small businesses with AMWA under $25,000 qualify as quarterly remitters, while those with AMWA between $25,000 and $100,000 must remit monthly. Larger businesses with AMWA over $100,000 are classified as accelerated remitters and must follow more frequent remittance schedules, with level 1 requiring semi-monthly payments and level 2 requiring payments within three working days after each payday.
Our CRA compliant remittance management ensures your business follows the correct schedule and never misses a payment deadline. This proactive approach prevents penalties that accumulate at $10 per day per missed remittance. Learn more about remittance schedules.
Record of Employment (ROE) Filing
Whenever an employee experiences an interruption of earnings lasting seven days or more, employers must issue a Record of Employment. This requirement continues throughout the year but becomes particularly important during year-end requirements planning and preparation.
ROEs must be issued within five calendar days after the interruption of earnings. This timeline applies to all scenarios including employee termination, resignation, layoff, or extended leave. The Record of Employment provides critical information that Service Canada uses to determine Employment Insurance eligibility and benefit amounts.
Our CRA compliant ROE preparation ensures timely, accurate filings that help employees receive EI benefits promptly. We handle the complex requirements of ROE reporting, including correct separation reason codes, accurate insurable earnings calculations, and proper benefit allocations. Learn more about ROE filing.
Benefits of Professional Year-End Requirements Management
Our CRA compliant services deliver significant advantages for your business operations and peace of mind.
Financial Protection Through Compliance
The most immediate benefit of professional year-end requirements management is financial protection from CRA penalties. Late T4/T4A filings incur substantial penalties that can quickly accumulate, especially for businesses with many employees. Missing even a single deadline can result in penalties ranging from $100 to $7,500 per slip.
Beyond direct penalties, CRA may assess interest charges on unpaid amounts and can initiate audits of businesses that consistently miss year-end requirements. These audits are time-consuming, stressful, and can result in additional assessments if errors are discovered in previous years' filings.
Our year-end requirements expertise ensures all deadlines are met accurately and on time, eliminating the risk of penalties and reducing audit likelihood. This financial protection alone justifies the investment in professional CRA compliant support.
Penalty Avoidance
Eliminate $10/day late filing penalties for all T4/T4A slips
Employee Satisfaction
Provide employees with accurate tax documents on time for personal filing
Audit Protection
Comprehensive documentation creates audit trails that protect your business
Peace of Mind
Focus on business operations while we handle complex compliance requirements
Ready for Professional Year-End Requirements Help?
Ensure your CRA year-end obligations are handled professionally and accurately. Contact us today to discuss your needs.