Enter a year-end adjustment

Year-end adjustments are entered to update year-to-date values for an employee's earnings, deductions or employer contributions when amendments are required after the final pay of the year is processed. For example, a taxable benefit or pension adjustment (PA) is calculated after year-end and must be reported on the employee’s tax form.

The Year-End Adjustments page is similar to the Manual page with the following exceptions:

  • the entry does not have to balance
  • a Cheque Number is not required
  • the For which pay period? column does not display because year-end runs do not allocate earnings to pay periods for Insurable Earnings purposes

All values entered on the Year-End Adjustments page are directed to the employee’s tax form based on the employee’s Province of Employment / Business Number combination.

Note: Information displayed on the page is based on the last processed payroll run of the year.

Note: Enter all required data in the appropriate section. If you need more records than are displayed initially, click Save. Powerpay adds more rows. When applicable, Powerpay also displays Gross Pay and Total Deductions.

Prerequisites

You have determined that it is necessary to enter a year-end adjustment for an employee.

You have created a Year-end run.

You have calculated statutory deductions based on hours, earnings or taxable benefit amounts that you plan to adjust.

Note: For a Year-End Adjustment run, Powerpay does not calculate any statutory deductions - Federal or Provincial. To record statutory deductions (Federal Tax, CPP/QPP, EI/QPIP, Quebec Tax, NWT and Nunavut Tax), you must determine these amounts and enter them in the appropriate row in the Government Deductions section.

Tasks

Note: If you require adjustments for province moves or business number moves the Adjustment Spreadsheet should be completed and emailed to Ceridian. To locate the spreadsheet, click here. All other employee year to date adjustments can be entered into Powerpay.

Tip: For spreadsheet entries to be included with your Year-end Run, delay the submission.

  1. Click the Pay Period menu and click the Enter button for the pay period you want to work with.

  2. Go to the Year-End Adjustments page.Closed From the Payroll menu, select Year-End Adjustments.

  3. From the Employee List, select the employee whose data needs an adjustment.

    Powerpay displays the employee's information, including descriptions that pertain specifically to that employee's province or territory and EI category.

  4. Complete the fields on the page.

  5. Click Save.

    The calculated results of the adjustments display. The entry may be edited as required. When applicable, Powerpay also displays Gross Pay and Total Deductions.

  6. If error or warning messages appear, adjust data as required and click Save again.

Refer to CRA’s Pension Adjustment Guide (Publication No. T4084) for a detailed explanation of the PA calculation for each different type of plan (i.e., money purchase, deferred profit sharing, defined benefit). The maximum reportable pension adjustments for 2021 are:

  • $29,210 for Money Purchase plans
  • $14,605 for Deferred Profit Sharing plans
  • $28,610 for Defined Benefit plan [($3,245.56 x 9) - $600]

Note: If you have pension adjustments to report and an actuary is providing the details for you, ensure they are aware that you must have the information prior to processing your tax forms.

Next steps

  1. Verify data using the Data Verification page.Closed From the Process menu, select Data Verification. Check each field where you entered values against the totals displayed in the Year-End Adjustments Run – Totals section.
  2. Preview the payroll run on the Payroll Preview page.Closed From the Process menu, select Payroll Preview.

Powerpay displays any employee who has a year-end adjustment on the Employee Totals page. Click the employee’s name to open the Employee Details page to view that employee’s year-end adjustments. The amounts recorded for the year-end adjustment update the employee’s year-to-date totals for that field for the previous year.

Note: No payments are produced on a Year-End Adjustment run – Employee, Federal, Provincial or Third-party

Note: Ceridian does not process any remittances to government agencies. Such remittances are your responsibility. In addition, although Powerpay calculates the employer costs for provincial payroll and medical taxes and Nova Scotia WCB employer premiums, you are responsible for remitting these amounts.

Note: Year-to-date entries for earnings not previously reported on the register will not update the respective Provincial Medical totals, for example, EHT.

Note: Year-to-date entries will not calculate vacation accruals or update EI history.

Field Information

Displays view-only labels and corresponding values for the employee and company level information based on the last processed payroll of the year.

Displays the following information for an employee:

  • Province of Employment
  • EI Category
  • Federal Business Number (corresponding to the employee's EI Category)

Displays without default descriptions.

Use this section to select a description, enter the hours, and, if required, enter an exception rate and department for the entry.

Note: If you need more records than are displayed initially, click Save. Powerpay adds more rows. When applicable, Powerpay also displays Gross Pay and Total Deductions.

Displays without default descriptions.

Use this section to select a description, enter the dollar amount, and, if required, enter an exception department for the entry.

Note: If you need more records than are displayed initially, click Save. Powerpay adds more rows. When applicable, Powerpay also displays Gross Pay and Total Deductions.

Displays information based on the employee's Province of Employment at the last payroll run of the year.

For example, for an employee whose Province of Employment was Quebec at the end of the year, Powerpay displays the following additional fields:

  • Quebec Tax
  • Quebec Tax - Releve 2, Box J
  • QPIP

Use this section to enter amounts for any of the Federal or Provincial Statutory Deductions that you need to update for the employee.

Note: Powerpay does not automatically calculate or remit any Federal or Provincial deductions on a Year-End Adjustment Run.

Deductions and contributions are not automatically taken on Year-End Adjustment Runs and must be entered as one-time amounts. Use this section to enter the dollar amounts for any of the Miscellaneous Deductions and Contributions that you need to update for the employee.

Displays any active and deleted garnishments that the employee had in the year applicable to the year-end adjustment run. Use this section to enter any dollar amounts for the garnishments that need to be updated for the employee.

If applicable, enter the Net Pay if you need to update a manual cheque.