February is one of the busiest compliance periods for Canadian businesses.
Between T4/T4A production, U.S. contractor 1099s, payroll reconciliations, and CRA deadlines, there is zero room for error.
Here’s how to manage “Slips Season” efficiently.
1. Finalize All Payroll Adjustments
Before generating T4s or T4As, confirm:
- Taxable benefits recorded correctly
- Bonuses posted in the correct year
- Vacation payouts documented
- All ROEs created
- All remittances reconciled
Bad payroll data = bad year-end slips.
2. Prepare Contractor Slips (T4A + 1099)
For contractors paid in Canada → T4A
For contractors in the U.S. → 1099-NEC
Gather:
- Legal names
- Addresses
- SIN/BN or SSN/EIN
- Total compensation
Missing info delays filings and triggers penalties.
3. Reconcile Payroll Clearing Accounts
This ensures amounts deducted match what was actually remitted to the CRA.
Common issues:
- CPP/EI mismatches
- Double postings
- Misaligned employer contributions
4. Track Down Missing Information Early
Employees often move, change addresses, or update names. Contractors sometimes forget to send updated details.
Start outreach in early February — not the last week.
5. Prepare Summary Documents for Your Accountant
This includes:
- Annual payroll summary report
- T4/T4A worksheets
- Records of Employment (ROE).
- WSIB/WCB summaries (if applicable)
- Any taxable benefits documentation
Being organized reduces prep time and accounting fees.
6. Keep Compliance Integrated with Month-End
Your monthly close and your annual compliance should not be separate workflows.
A clean month-end (especially January) ensures February filings are fast and stress-free.
Final Thoughts
February compliance doesn’t have to be stressful. With proper preparation, clear communication, and a predictable close process, you can get through T4/T4A/1099 season smoothly and confidently.
