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If I start a new calendar year, will I still be able to process paycheques with automatic tax calculation in the current calendar year?

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Summary

How to start a new calendar year and deal with paycheque processing.

Resolution

  • When you advance the calendar year, it closes the previous payroll calendar year including tax calculations
  • If you start a new calendar year and you have to process payroll in the current calendar year, the payroll tax calculations will no longer be automatic and must be entered manually

Option 1: I have not started a new year yet

  1. Wait until payroll is done before starting the new calendar year.

Option 2: I need to force start a new year but do payroll for the current period

  1. Taxes for paycheques for your current calendar year will have to be calculated manually.
  2. Follow How to get the payroll tax deduction amounts from the CRA Payroll Deductions Online Calculation (PDOC) website.

Option 3: I accidentally started a new year

  1. Restore a backup of a proper calendar year.