Humi’s Year-End Adjustment Tool allows you to make changes to your payroll data before issuing T4s.
You’ll see a table of all of your employees who will be receiving a T4 for the selected year. You can then adjust earnings or taxes up or down to correct issues that you’ve found through your reconciliation process or add the required T4 information for all employees in one convenient place.
No matter the reason, it's essential to make the changes before issuing T4s 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:
- You can only make adjustments to a year after all payrolls with a cheque date in that year are completed.
- 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.
- 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
In Payroll, click on the Records tab, and then select Adjustment in the dropdown menu.
- Use the Year dropdown to select the year you need.
The Adjustment table for that year will populate.
- 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, there will be a value of $0.00 in each field. This means that there were no adjustments made for that employee and pay item.
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.
Humi automatically saves your entry, and you can make as many entries as you need before generating T4s.
New for 2023! How to Indicate if an Employee was Offered Dental Benefits
For the 2023 calendar year and onwards, before generating T4s you’ll need to indicate whether an employee, former employee, or a spouse of a deceased employee was eligible on December 31 of the reporting tax year to access dental insurance or dental coverage of any kind, due to current or former employment.
To facilitate this in Humi, we’ve added a column to the Year-End Adjustment Tool titled Employer-Offered Dental Benefits. You’ll be required to select the code that corresponds to the CRA’s requirements. Once entered, this will flow into the T4.
Not sure which code to pick?
For more information on which code to choose for Box 45, click here to visit the CRA’s guide.
Locking Year-End Adjustments
Once you Generate T4s, Humi will lock the Payroll Adjustment Tool, and you won't be able to make any other changes.