2025 Year End Reminder and Checklist

Last updated: December 9, 2025

As the year draws to a close, it’s important for employers to stay ahead of key year-end responsibilities. To support a smooth transition into the new year—and to avoid costly last-minute corrections—we’ve compiled a checklist of essential reminders.

These tasks help ensure payroll accuracy, compliance with Canadian reporting requirements, and a seamless year-end wrap-up.

Use this guide to help stay organized and well-prepared for the busiest period of the payroll calendar.

1. Prepare for the Final Payroll of the Year

Review your final payroll approval deadline

  • Banks will be closed on December 25th, 26th, and January 1st, and payments will not be processed on these dates.

  • Missing a payroll approval deadline may mean you have to pay employees manually.

Important: Any payments processed with cheque dates after December 31st will be reported on 2026 T4s/RL1s, not 2025.

Review employee profiles and year-to-date information

  • Confirm employee addresses, SINs, and province of employment, especially if reporting offices have changed during the year.

  • Ensure all taxable benefits, allowances, and deductions have been correctly recorded.

  • Verify year-to-date earnings to prepare for accurate T4/RL1/T4A reporting.

Process remaining bonuses and taxable benefits

  • Add any year-end bonuses, commissions, or gifts that must be included in 2025 payroll.

  • Record employer-paid benefits (e.g., health/dental premiums, parking, group insurance) that need to be added to taxable income.

  • Identify the appropriate T4 dental benefit code for each employee. This code indicates whether an employee or their family members were eligible for employer-provided dental insurance or coverage as of December 31.

Reconcile CPP, EI, and QPP/QPIP contributions

  • Check if any employees are nearing the annual CPP/EI maximums to help avoid over-withholding.

  • Confirm any CPP, EI, QPP, or QPIP exemptions that were applied during the year.

Review vacation and time-off balances

  • Review any year-end vacation payouts, carryovers, or resets.

  • Make necessary adjustments to balances before processing the final payroll of the year.

2. Prepare for Payroll in the New Year

Set up for the new payroll year

  • Update employee's salary, vacation pay rate, benefit rates and recurring allowance (if applicable)

  • Review and update WCB or CNESST rates for 2026.

ATB Payroll does not automatically update these rates—employers must create or update new rates when they receive their 2026 notices.

Remind employees to update tax forms for 2026

  • Encourage employees to submit updated TD1 and/or TP-1015.3

    forms if they have new claims or deductions.

Update remitter frequency

  • After the last payroll of the year has been processed, update your remitter frequency if you've received a notice of change from the CRA.