Before generating T4s, you might find that you need to change the payroll data. Most often, changes required are due to an error during the year or receiving late information.
No matter the reason, it's essential to make the changes before issuing the T4 so that your employees are taxed correctly.
You can make these changes using Humi's "Payroll Adjustment" feature.
The "Payroll Adjustment" feature is a very powerful tool 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
1. In "Payroll," click on the "Records" tab, and then select "Adjustment" in the dropdown menu.
2. From the "Year" dropdown, select the year you need.
3. 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.
You might need to add an "Additional Income" or "Benefit and/or Deduction" that was not on a payroll in the year. To do this you must first create the "pay item" and add the employee to it before entering the "Payroll Adjustment" page.
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.
Making the adjustment
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.
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.