Year-End Processing Cycle

Payroll year-end processing consists of the following processes:

Process	Description
Archiving year-end information	You can store, access, and review year-end information that you reported to the government. It is imperative that you archive prior year workfiles before installing the 2023 update.
Verify payroll history	Review both the Taxation History Integrity report and the PDBA History Integrity report for accuracy. Correct any inaccurate history records to ensure that you report the correct information to the government.
Entering and running year-end rollover information and programs	You enter rollover information, for example, limits on vacation or sick-leave rollover. You run the year-end rollover programs to carry forward pay types, deductions, benefits, and accruals (PDBAs) with balances to the new year. You carry forward PDBA balances to correctly process payroll cycles in the new year.
Verifying employment insurance history	You must verify the integrity of employment insurance (EI) history to ensure that you report the correct information to the government. If you discover errors after running the integrity programs, you revise your employment insurance history to correct the errors, if the errors reflect invalid conditions. You also verify the integrity of the EI hours to locate and correct discrepancies between the Employment Insurance History (F06176) and the Payroll Transaction History (F0618) tables to ensure that no discrepancy exists in insurable hours worked for employment insurance.
Reposting historical information	You repost historical information as follows: Repost tax area information to create a table of PDBAs by province and tax ID. You use this table to associate payroll amounts with specific boxes on year-end forms. When you repost, you also ensure that the system properly posts all PDBAs and that no PDBAs were missing during the year.
Setting up year-end information	You must set up the information that is required for year-end processing to ensure that you report accurate information to the government and to your employees. You set up the following information: Verifying Employee Names and Addresses Verifying Company Information User defined codes PDBA cross-references to special handling codes Special handling code cross-references to specific boxes on forms Pension records Non-Resident secondary name information Non-Resident account information Beneficiary information
Building workfiles	You build year-end workfiles to retrieve the information that you need in order to print year-end reports and forms. You define the criteria for your workfile, and then run the workfile build program.
Reviewing year-end information	You gather and review the information that you need before you report the information to the government. This includes running preliminary XML and Audit File Builds in order to review the integrity reports
Reporting year-end information	You supply wage and earnings statements to your employees and electronic XML files to the government.
Archiving year-end information	You can store, access, and review year-end information that has been reported to the government.

The following graphic illustrates the year-end process: