You've put in a lot of work into reviewing a whole year's worth of payroll data for your employees, and now it's time for the fun part – addressing any issues you've found.
There are two types of corrections required:
- Employee personal information
- Pay information
Employee personal information
In January 2022, Humi will provide an "Adjustment" tool that will allow you to correct any pay stub information before generating T4s. (This guide will be updated when this feature is released).
Admins can update "Pay Information" using Humi’s new "Adjustment" feature. This is a powerful tool and admins should only use it after a thorough review of payroll data and the T4 requirements.
The "Adjustment Table" has a row for every employee who was on at least one payroll in the year. The table also has a column for every type of Pay, Additional Income, Benefit and/or Deduction that was on at least one payroll in the year.
To make an adjustment, double click on the field, and enter the change.
- To increase the value of an earning or benefit, enter a positive dollar value.
- To increase the value of a tax or deduction, enter a positive dollar value.
Humi automatically saves the changes and reflects them on the T4.
Note: The Adjustment feature does not move money to your employee(s) or the CRA. If the adjustment results in more money owed to the employee or the CRA, you will need to pay (or collect) this outside of Humi.
If you need to make an adjustment that requires increasing tax amounts, whether it's for the employee or the employer, please be aware that you, the employer, must remit these amounts to the CRA outside of Humi.
Remit outstanding amounts to the CRA
You'll need to remit any owed income tax, CPP, or EI statutory deductions before or as part of the final remittance for the tax year through the CRA's My Business Account.
You will incur no penalties or interests as long as the owed amounts are remitted and received by the CRA within the remittance period's due date.
Only use "Payment on Filing" as the last resort
As a leniency policy, the CRA offers a last resort solution known as Payment on Filing, allowing eligible employers to remit a reconciliation payment by the last day of February without being subject to a penalty or interest.
Employers are eligible if they meet all three of the following requirements:
- If the "reconciliation payment" is less than 1% of your total annual remittances
- You have perfect payroll compliance:
- No late or outstanding remittances
- No assessments in the year they are filing
- All T4 information filed on or before the due date
- You must have one or more of the following circumstances:
- Employees who are paid stock-based salaries or wages
- Third-party information they rely on for insurance, health benefits, broker information, taxable benefits and/or automobile fleet mileage
- Employees who live in other tax jurisdictions
However, we generally recommend remitting any owed amounts as soon as possible, so "Payments on Filing" can be only be used for true emergencies, such as reconciling discrepancies that are discovered after the final remittance due date.