December Year End Readiness Update
Year-End is almost here!
RGB Accounting and ADP want your Year-End to be less stressful and less work. After processing your last payroll for 2021, ADP will automatically run a new Tax Form Trial Run Report.
What should you do?
- Locate and review your Tax Form Trial Run Report. To find out how to locate it in your product, visit The Bridge > Choose your Product > FAQs.
- Complete any Year End Response Forms that apply to your company.
*NEW – Tax Profile Change Form. Requesting updates to company rates or exemptions is faster than ever with a new intuitive form!
- Process any final adjustments for 2021 before your last payroll. This will ensure ADP submits all remittances to the appropriate government agencies by the deadline.
How can you be prepared?
- Register to attend a Year-End Readiness Client Webinar. Look out for an email invitation.
- Complete ADP’s Introduction to Year-End & Balancing Training on The Bridge > Year-End > Choose your product > Training & Tutorials.
- Register to attend CPA Training, at Member pricing, using promo code “ADP21” for Legislative Update: Year-end and New Yearor Year-End and New Year Requirements
Year-End Legislative Updates
- T4 Codes 57-60 introduced in 2020 for COVID-19:CRA has confirmed these codes are not required for 2021
- T2200 Short- Working from home during COVID-19: The Canada Revenue Agency (CRA) has not yet announced how working from home, due to COVID-19, will be handled for the 2021 taxation year. ADP is closely monitoring announcements and will communicate any updates in future newsletters, the Bridge and Webinars
- Dynamic Federal Basic Personal Amount: On December 9, 2019, the Federal Government proposed a plan to increase the Basic Personal Amount (BPA) to $15,000 by 2023 for the Middle Class. The Basic Personal Amount (BPA) gradually reduces for individuals with a high net income (over $150,473):
- As of January 2022, the Canada Revenue Agency (CRA) requires Payroll Service Providers to implement system changes to use a dynamic calculation for determining an employee’s Basic Personal Amount (BPA).
- The dynamic calculation will consider an employee’s estimated annualized earnings, every pay, to determine net income, used to determine the Basic Personal Amount (BPA).
- Currently, ADP applies a static exemption to employees with standard exemptions. As of January 1, 2022, ADP will use the dynamic calculation, and as a result, a high-income earner may see a slight increase in their federal income tax deduction.
- Have your employees complete a new TD1 Form every year and make the required changes, in your product, before processing your first payroll of 2022.
For more information, please visit the CRA website
Don’t hesitate to contact RGB Accounting by phone at (416) 932-1915 or by email at [email protected] if you need help with this matter. We’ll be pleased to assist you.
Source: ADP Canada
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