As we approach the final quarter of 2025, it's time to prepare your business for a smooth and compliant payroll year-end. Whether you're a small business owner or managing a growing team, staying ahead of regulatory changes is key to avoiding penalties and ensuring accurate reporting. Here's a roundup of the most important updates and best practices to guide your year-end planning.
1. Mandatory Digital Filing
• Employers issuing more than five T4 or T4A slips must file electronically.
• CRA is expanding real-time payroll reporting—ensure your systems are compatible.
2. CRA No Longer Sends Paper Communications
• As a reminder, the Canada Revenue Agency (CRA) has transitioned to digital-only communications. Make sure your My Business Account is active and monitored regularly to avoid missing important updates.
3. Minimum Wage Increases
Effective October 1, 2025, Ontario's general
minimum wage will increase from
$17.20/hour to $17.60/hour.
Employers
must ensure that:
• Payroll systems are updated to reflect the new rate.
• Employment contracts, schedules, and job postings are reviewed for compliance.
• Any staff currently earning minimum wage are adjusted starting on this date.
To stay compliant and organized, here are essential tasks to complete before year-end:
• Reconcile your books: Match payroll withdrawals with wage and tax reports.
• Review approved payrolls: Ensure all wages, benefits, and deductions are accurately reported.
• Add missing benefits or deductions: Include any outstanding items before final payroll approval.
• Preview T4 and T4A slips: Verify employee and contractor information.
• Update employee tax profiles: Ensure TD1 forms reflect 2026 exemption amounts.
• Confirm CRA deposit frequency: Adjust your remittance schedule for the new year.
• Conduct regular audits to catch errors early.
• Leverage automation: Use cloud-based payroll software to reduce manual mistakes.
• Educate your team: Ensure staff understand new compliance rules.
• Consult experts: Reach out to your payroll advisor for tailored guidance.
Need support with year-end payroll processing or compliance planning? Our team is ready to assist with
• T4/T4A preparation
• CRA remittance reviews
• Payroll system updates
• Employee classification audits
Contact us today to schedule your year-end payroll review!
