Payroll Year-End Handoff: Everything Your Accountant or Bookkeeper Needs

Payroll year-end can feel overwhelming for many Canadian small business owners — especially when you’re juggling T4s, taxable benefits, and making sure every dollar paid throughout the year has been recorded accurately. But here’s the good news: you don’t have to tackle it alone.

Your accountant or bookkeeper is your year-end teammate and they can get things done faster and more efficiently when they have all the right info from you. 

This payroll year-end handoff list covers the documents and info they’ll need to finish 2025 strong and help you kick off 2026 with a clean slate.

1. Update Employee Information Before Payroll Year-End 

Before T4 slips can be issued, you’ll need to make sure all employee information is up to date and accurate. Even small errors  (like a misspelled name or outdated address) can cause delays or lead to corrections later on.

Confirm these details for every active and terminated employee who received remuneration during the calendar year:

• Legal name (matching SIN documentation)
• Address of Residence
• Social Insurance Number (SIN)
• Date of birth (age impacts pensionable earnings)
• Termination/on leave dates for inactive employees (if applicable)
• Province of employment (can impact payroll tax calculations for remote/hybrid employees)
• Paid time off (PTO) and vacation accrual balance per employee

Communicate any upcoming payroll changes affecting employees, this could include:

• Educating them on upcoming source deduction maximum contributions for EI, CPP/CPP2, QPP or QPIP
• 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)

Suggested Reading:  Year-End Payroll: How to Determine Province of Employment

Remember:  If you’ve onboarded new employees during the year, ensure all documents, such as TD1 and TD1 provincial forms are completed and accurately reflected in your payroll software or system

2.  Gather Your Complete Year-to-Date Payroll Reports

To wrap up year-end accurately, your accountant or bookkeeper needs a full picture of your payroll activity. Sharing the right reports helps them double-check totals, make any adjustments, and prepare your T4s/RL-1s with confidence. Here’s what they’ll be looking for:

• 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.
• Both CRA/RQ and provincial tax agency reports, notices, and mail including:

• • 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 that gross earnings, taxable benefits, deductions, and employer contributions match what will appear on T4 slips and the T4 Summary. Also important to note: the CRA has made changes to paper mail delivery in 2025, be sure to check your online CRA mail account for important notices.

Remember:  If you switched payroll systems during the year, provide reports from all systems used to avoid missing income or deductions. Using a software like Wagepoint allows you to collaborate with your accountant or bookkeeper to access any required payroll data.

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. To help your accountant or bookkeeper wrap things up accurately, share any statements, receipts, or records related to benefits you provided during the year, 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

Suggested Reading:  Taxable Benefit Mistakes You Can’t Afford to Make

Remember: The CRA requires that taxable benefits be included in the employee’s income for the pay period that it was received or enjoyed—so accurate records are essential

4.  Confirm Contractor Payments for T4A Reporting

If you worked with self-employed contractors this year, your accountant or bookkeeper may need to prepare T4A slips for them. To do that accurately, they’ll need the following information:

• 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

Suggested Reading: What You Need to Know About Paying Employees vs. Contractors

Remember:  Misclassifying employees as contractors can trigger CRA audits, so clarity helps protect your business

5. Identify Shareholder and Owner Payroll Activity

For incorporated businesses, shareholders often receive a mix of salary, dividends, or other taxable benefits. If you paid yourself or other shareholders during the year, your accountant or bookkeeper will need the following details to report everything accurately:

• Total salary or bonuses paid
• Taxable benefits charged to shareholder accounts
• Any personal transactions run through the corporation
• Deductions withheld or reimbursed

Remember:  Since shareholder benefits have unique tax rules, accurate tracking and reconciliation ensures compliance

6. Document Any Payroll or Business Changes From the Year

Any changes in your business operations can impact how payroll is reported at year-end. To keep everything accurate, make sure your accountant or bookkeeper is aware of any updates, such as:

• Moving to remote or multi-provincial work arrangements
• Changes to your payroll frequency
• Adoption of new software
• Opening new business locations
• Updates to your employee policies handbook

Remember:  These factors can change your payroll reporting obligations and calculations including provincial health taxes, employment standards and workers’ compensation

Year-End Preparation Tips for Small Business Owners

To avoid chaos every February, consider adopting these habits:

• Keep payroll data organized monthly, not just at year-end.
• Use cloud-based payroll software that pays government agencies automatically.
• Inform your accountant or bookkeeper promptly when employee or compensation changes occur.
• Retain all payroll documents and receipts for at least six years (plus the current year)
• Book a pre-year-end review with your accountant or bookkeeper in December to catch issues early.

Suggested Reading: Year-End Payroll Checklist for Canadian Small Businesses

Remember:  A well-prepared business owner makes the payroll year-end process smoother, faster, and far less stressful for all stakeholders.

Final Thoughts

Payroll year-end doesn’t have to be overwhelming. By gathering the right documentation and communicating proactively with your accountant or bookkeeper, you’ll ensure your employees receive accurate T4s, you stay compliant with the CRA, and your business starts the new year on solid footing. 

If payroll year-end still feels a little daunting, Wagepoint can help. Our software keeps your records clean, your calculations accurate, and your T4s ready to go so you and your accountant or bookkeeper can wrap up the year with confidence.

Learn more and book a demo here.

Written by Bianca Mueller, CPB, PCP

Bianca is a fintech socialite, award-winning Certified Professional Bookkeeper and Wagepoint’s Community Manager. When she’s not nurturing Wagepoint’s bookkeeping and accounting partner relationships, you might find her nursing a glass of wine in her vegetable garden.

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