When you advance the calendar year, it closes the previous payroll calendar year including tax calculations.
If you start a new calendar year and still have payroll to process in the current calendar year, the payroll tax calculations will no longer be automatic and will have to be entered manually.
- Wait until payroll is done before starting the new calendar year
Taxes for paycheques for the current calendar year will have to be calculated manually from one of these options:
- Go to the online payroll deductions calculator from the CRA website
- Get the tax value from the next calendar year
- Temporarily create a paycheque in the new calendar year (where automatic taxes calculation is possible).
- Note down the tax values.
- Cancel the paycheque.
- Create a new paycheque in the current calendar year and enter the tax values.
- Post the paycheque.
- Note: The paycheque in the new calendar year option only works if the tax payroll update for the new calendar year has not been installed yet. If it has, the taxes could be incorrectly calculated