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Administrator Guide
Last Updated: 2024-11-15
Setup Considerations: Year-End Tax Reporting (CAN)

Setup Considerations: Year-End Tax Reporting (CAN)

You can use this topic to help make decisions when planning your configuration and use of Canada year-end tax reporting. It explains:
  • Why to set it up.
  • How it fits into the rest of Workday.
  • Downstream impacts and cross-product interactions.
  • Security requirements and business process configurations.
  • Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is

Workday enables you to create and submit year-end tax data to government agencies using a series of reports, tasks, and integrations. Workday supports these Canadian year-end tax forms:
  • T4
  • T4A
  • T4A-RCA
  • RL-1
  • RL-2
  • NR4

Business Benefits

Workday Canada year-end tax reporting makes it easier to comply with year-end payroll requirements by:
  • Maintaining payroll data in 1 system.
  • Validating year-end data against government guidelines.
  • Streamlining the creation of T4 and RL-1 year-end tax forms by providing business processes.
  • Simplifying the creation of T4A, T4A-RCA, RL-2 and NR4 tax forms with tasks.
  • Enabling you to audit T4, RL-1, T4A, T4A-RCA, RL-2, and NR4 data using reports.
  • Producing electronic copies of year-end tax forms for employees to access in employee self-service (ESS).
  • Enabling you to correct year-end tax forms in Workday.

Use Cases

  • Preview year-end tax forms before the year-end process.
  • Identify company, employee, or Pensionable and Insurable Earnings Review (PIER) exceptions.
  • Give employees the ability to opt in or out of a paper copy of their year-end tax forms.
  • Give employees access to print and view their electronic year-end tax forms in ESS.

Questions to Consider

Questions
Considerations
Which year-end forms will you need to create for your organization?
Map and test each year-end form you intend to use. Test the integration systems.
Which year-end adjustments will you be processing outside of regular payroll?
Identify the year-end adjustments. Enter the adjustments as a manual payment. Example: Personal use of a company car.
What data would you like to use to balance year-end?
Plan to create custom reports if required.
Have you verified that all pay components have the correct pay component groups configured?
Pay component groups control how Workday reports some amounts on year-end forms. Example: Amounts processed for a pay component in the
Income Taxable
 pay component group are reported in Box 14 of the T4.
Have you changed pay component groups after completing payroll?
You can create manual payments if you need to adjust balances.
Do you have to make tax adjustments?
Use manual payments for adjustments when you need a specific result on the T4 for withholding. Example: Recording third-party payments.
Use on-demand payments for adjustments when you don't need a specific result on the T4 for withholding. Example: Check reversals.
Do you want to enable employees to receive hard copies of their T4, T4A, and RL-1 year-end forms?
You can set up document printing options for employees who want to change their printing elections. Example: Terminated employees might want a paper copy of their year-end forms.
Do you want employees to be able to opt out of paper copies of their T4A-RCA, RL-2, and NR4 year-end forms?
You can set up document printing options for employees who want to change their printing elections.

Recommendations

In preparation for the year-end process, Workday recommends that you run preview and audit reports for year-end tax forms each quarter.

Requirements

To produce accurate year-end reporting, maintain tax and payroll data throughout the year.
At the beginning of the tax year:
  • Set up fiscal years to support the entire tax year.
  • Set up the period schedule for payroll and absence. Validate payment dates for the year against bank holidays.
  • Verify that new ledger periods are in open status.
  • Update or add tax rates.
  • Ensure that appropriate pay components are mapped accurately using the
    View Canada Year End Form Box Configuration
     report. This drives tax reporting in Workday.
As necessary, throughout the tax year:
  • Review Canada Revenue Agency and Revenu Québec reporting requirements for the current tax year.
  • Run year-end preview and audit reports.
  • Run PIER reports.
  • Update federal and provincial tax setup for your company.
  • Update workers' alternate and payroll processing work locations.
Toward the end of the tax year:
  • Complete all payrolls for the reporting year, including off-cycles and manual adjustments.

Limitations

Workday creates year-end data for all workers, not individual workers. To provide year-end data for an individual worker:
  1. Run the
    T4 / T4A / T4A-RCA / RL-1 / RL-2 / NR4 Preview
     report.
  2. Use the report to create the form manually using PDFs from the Canada Revenue Agency or Revenu Québec.

Tenant Setup

Workday uses electronic signature text for employees changing printing elections for year-end tax forms. You can configure electronic signature text options on the
Edit Tenant Setup - Payroll
 task.

Security

Domains
Considerations
Business Process Administration
 and
Manage: Business Process Definitions
 in the System functional area.
Enables you to set up the business processes for T4 and RL-1 year-end tax forms.
Management Dashboard: Payroll Year End
 in the CAN Payroll functional area.
Enables you to use and configure the
Payroll Year End
 dashboard.
Integration Build
 and
Integration Configure
 in the Integration functional area.
Enables you to set up the integration systems to submit year-end tax forms to the Canada Revenue Agency and Revenu Québec.
Process: Year End (Reports) - CAN
 in the CAN Payroll functional area.
Enables you to preview employee data and form data and generate PDFs of the forms.
Process: Year End (Run) - CAN
 in the CAN Payroll functional area.
Users with access to this domain can:
  • Calculate and extract wage data.
  • Cancel extracted wage data.
  • Review a summary of year-end data.
  • Give employees access to year-end tax documents in ESS.

Business Processes

You can use the
T4 Year End Process (Default)
 and
RL-1 Year End Process (Default)
 business processes. You can access both business processes from the
Payroll Year End
 dashboard.

Reporting

Reports or Dashboards
Considerations
Payroll Compliance
 dashboard
You can review Workday-delivered compliance updates.
Payroll Year End
 dashboard
Launch business processes to create your T4 and RL-1 year-end tax forms. View past and current year-end form statistics for T4 and RL-1 forms. Access these T4 and RL-1 reports as worklets:
  • Payroll Year End Process
  • Last 5 Years (Forms/ Employees)
  • Estimated Form Types Needed (Forms/ Employees)
Tenant Analyzer
profile
Verify that pay components are in the appropriate pay component group using the
PCGs for Payroll Calculations
 report on the
Payroll
 profile group.
  • Company Canada Year End Audit
  • PIER Exception Report - CPP/QPP
  • PIER Exception Report - EI/QPIP
  • PIER Exception Summary - CPP/QPP
  • PIER Exception Report - CPP2/QPP2
  • T4 Preview
  • T4 Preview - Other Info
  • T4A Preview
  • T4A Preview - Other Info
  • T4A-RCA Preview
  • RL-1 Preview
  • RL-1 Preview- Additional Info
  • RL-2 Preview
  • RL-2 Preview - Additional Info
  • NR4 Preview
  • Report Worker Province of Employment and Location
  • Year End Variance in T4 Box 14
  • Year End Variance in RL-1 Box A
Use these reports to audit company and employee data.
Workday recommends that you resolve any exceptions before creating year-end data, as they might cause your integration file to fail.
Custom Reports
You can create custom reports from report data sources secured to Canadian year-end tax reporting business objects.

Integrations

You can create these integrations to submit year-end forms to government agencies:
Integrations
Considerations
Annual Tax Filing - CRA (T4)
Generates a year-end T4
Statement of Remuneration Paid
 file for submission to the Canada Revenue Agency (CRA).
Annual Tax Filing - CRA (T4A)
Generates a year-end T4A file for submission to the CRA.
Annual Tax Filing - CRA (NR4)
Generates a year-end NR4 file for submission to the CRA.
Annual Tax Filing - RQA (RL-1)
Generates a year-end RL-1 statement of employee taxes file for submission to Revenu Québec.
Annual Tax Filing - RQA (RL-2)
Generates a year-end RL-2 statement of employee taxes file for submission to Revenu Québec.
Web Services
Considerations
Put Payroll Off-Cycle Payment
Enables you to load off-cycle payments for workers.
Put Tax Document Delivery
Enables you to load year-end printing options for workers.
Put Payroll Employer RPP or DPSP Registration Number Configuration
Enables you to load RPP and DPSP numbers in bulk.
Get Payroll CAN Year End Forms
Enables you to retrieve employee Canada year-end form data for use with third-party vendors.

Connections and Touchpoints

Ensure that you provide any required year-end worker data, including:
  • Contact information, such as home address and social insurance numbers.
  • Alternate and payroll processing work locations or position job locations, which Workday uses to determine the province of employment.
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships across your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.