FAQ (Canada) - Timing of year-end tasks: What should I do when?
Description

Warning: This resolution may require you to install a payroll tax update. Update taxes in each company folder that does not share a tax file. After you complete this installation, tax changes are effective the next time you process payroll, regardless of the effective date on the tax table or the dates on the check. Tax updates do not affect previously issued checks. 

Note: Throughout this article, "old year" refers to 2024 and "new year" refers to 2025. 

Refer to the Year-End Procedures Guide and other articles linked below for more information about year-end processing and tasks.

Cause
Resolution
Questions and Answers

 

Overall

Q: Do I need to install the year-end version before I print T4s, ROE or T5018?
A: Yes, you must install the year-end version before you process or print those government forms or reports.
Note: You do not need to install the year-end software version before processing payroll for the new year. See the Payroll and Accounts Payable sections below for more information.

Q: In what order should I close my applications at year-end?
A: All Sage 300 Construction and Real Estate Accounting and Management Product applications are closed independently of one another and can be closed in any order with General Ledger being the last one you should close. Applications are typically closed in the following order:

  1. Payroll - This ensures the first payroll for the new year processes correctly. You can generate T4s and ROE before or after you close the year in Payroll.
  2. Accounts Payable - You can generate T5018s before or after you close the year in these applications.
  3. Equipment Cost, Contracts, and Job Cost - Job Cost and Equipment Cost send entries to General Ledger, and Contracts sends entries to Job Cost. These applications should be closed before you close the year in General Ledger. If the new month is the first month of a new year, the year-to-date totals are replaced by the next year's totals.
  4. Accounts Receivable, Property Management, and Cash Management - These applications send entries to General Ledger and should be closed before you close the year in General Ledger.
  5. General Ledger - Close year in this application last to ensure all entries posted from the interfacing applications are included.

 

Accounts Payable

Q: Can I print T5018s before I close the fiscal year in General Ledger?
A: Yes. You can print T5018s regardless of whether you have closed the fiscal year in General Ledger. See the next Q&A for more information.

Q: Do I need to close my 1099 year before I print T5018s and checks for the new year?
A: No, closing your 1099 year is not required prior to generating your T5018.

 

General Ledger

Q: Can I close the fiscal year in General Ledger before I know what all my prior year adjustments are going to be?
A: Yes. You may want to close the fiscal year so that you can print current financial statements in the new year. When you make entries to a period in a prior year, open the appropriate prior period to post those entries in General Ledger. After you post entries to the prior year, close your fiscal year again and close the posting period again (Tasks, Open/Close Posting Period). Refer to
How do I record a prior year adjustment in General Ledger? and How do I close prior year adjustments to retained earnings?

Payroll

Q: In what order should I close the year in Payroll, install the tax file update, and install the year-end version?
A: You can close your year, update taxes, and install the year-end version in any order. However, you need to consider the effect that issuing checks and generating T4s will have relative to the timing of these year-end tasks. For more information, continue reading the Q&As below.

Q: What do I need to do before I process checks for the new year?
A: There are several things you must do before processing checks for the new year.

  • Print and post all checks for the old year.
  • Close the year in Payroll.
  • Update taxes.

Q: What do I need to do if I do bi-weekly Payroll and the year has 27 periods?
A: Refer to How does Canadian Pension Plan annualize on a bi-weekly pay group when there are 27 pay period in a year?
for information on modifying the CPP formula.

Q: What do I need to do before I generate T4s?
A: There are a couple of things you must do before generating T4 slips.

  • Print and post all checks for the old year
  • Install the year-end version

Note that you do not need to close the year or update taxes before generating T4s.

Q: What are some examples of year-end task workflow?
A: Here is an example of common year-end Payroll workflow for Sage 300 CRE customers:

  1. Print and post old year checks.
  2. Close the year.
  3. Update taxes.
  4. Enter time, process, and print new year checks.
  5. Install the year-end version.
  6. Print T4s.

Q: Do I need to close the month before I close the year?
A: No. If your current Payroll month is December, you can only close the year. Closing the year also closes the last month of the year.

Q: When should I update the Payroll tax file for the new year's tax changes?
A: Download and update taxes after you print and post the last payroll of the old year and close the year, but before you process checks for the first payroll of the new year. Although the Update Taxes command makes tax rates current for the new year, you may still need to change local taxes and rates specific to your company.

If you install the tax update before you process the final checks for the old year, the checks will process with the new tax rates. See What can I do if I download and update taxes too soon? 

Q: When do I print year-end Payroll reports?
A: You can print T4s before or after closing the year.

Q: Can I process payroll for the new year before I print T4s?
A: Yes, as long as you close the year in Payroll and update taxes first. You can then process payroll for the new year.
See the following Q&As for more information.

Q: Can I enter time for the new year before I close the old year in Payroll?
A: Yes, you can enter time before closing the year. However, you should not process or print payroll checks before closing the year and updating taxes.

Q: Can I process, print, or post payroll for the new year before I close the old year in Payroll?
A: No, do not process or print payroll checks for the new year (2025) before closing the year and updating taxes.
If you issue checks for the new year before closing the old year, your check calculations and government reports will be affected (see
What happens if I process payroll for the new year before I close the old year in Payroll?). Refer to How do I correct a check I issued for the new year before I closed last year in Payroll? for instructions on how to make corrections.

Q: Do I need to install the year-end version before I print checks for the new year?
A: No, installing the year-end version before printing checks for 2025 is not required.

Q: Do I need to install the year-end version before I print my T4s?
A: Yes, in order to guarantee form compliance you must install the year-end version.



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Related Solutions

Which applications have a close period, month, or year task?
Where can I find Year-End Procedures Guides (YEPG)?
Sage 300 Construction and Real Estate Year-End Information - Accounts Payable
Supported versions for year-end and non-year end