How to Make Year-End Adjustments

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Humi’s Year-End Adjustment Tool allows you to change your payroll data before issuing T4s.

You’ll see a table of all your employees receiving a T4 for the selected year. You can then adjust earnings or taxes to correct issues you’ve found through your reconciliation process or add the required T4 information for all employees in one convenient place.

No matter the reason, making the changes before issuing T4s is essential so that your employees are taxed correctly.

Before You Start

The Payroll Adjustment Tool is a very powerful feature and should only be used after a thorough review of your payroll data and the T4 requirements.

Before diving in, there are three things to know:

  1. You can only make adjustments to a year after all payrolls with a cheque date in that year are completed.
  2. The "Payroll 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.
  3. Humi recommends that you review your PIER Analysis Report and/or T4 Preview Report before and after making Year-End Adjustments.

 

How to make a Year-End Adjustment

  1. In Payroll, click on the Records tab, and then select Adjustment in the dropdown menu.
    Screenshot 2024-12-04 at 1.39.34 PM.png
  2. Use the Year dropdown to select the year you need. Screenshot 2024-12-04 at 1.42.20 PM.png
  3. The Adjustment table for that year will populate.
    Screenshot 2024-12-04 at 1.40.46 PM.png
      • This table displays a row for every employee on at least one payroll in the year.
      • You'll also see a column for every Type of Pay, Additional Income, Benefit and/or Deduction on at least one payroll in the year. We will call these pay items for the rest of this article.
      • By default, each field will have a value of $0.00. This means no adjustments were made for that employee and pay item.
  4. Next, double-click on the field and enter your 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.
  5. Humi automatically saves your entry, and you can make as many entries as you need before generating T4s.

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