1. Run the T4/T4A Pre Validation Reporting process. This pre-validation process reviews and reports common data errors such as incorrectly formatted Postal Codes that will prevent the T4/T4A XML files from being accepted by CRA.
Review the report, adjust your data as needed and rerun this process. You must rerun this process until there are NO errors reported.
2. Balance T4A's: (Quarterly/Yearly)
This procedure ensures that you are reporting the correct information on your T4/T4A's by manually comparing the totals from the payroll history files to those generated by the T4 Processing, as defined in the T4/T4A Tax Forms Format Profile.
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Print the T4/T4A Format Profile report.
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Run the YTD Payroll Register for the entire year and select the Summary option.
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Run the T4/T4A Summary And Total Reporting and select the Totals and YTD History option.
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Balance the T4A's. Using the T4/T4A Format Profile (step i) as a guide, identify all the paycodes and deduction codes that make up the value in Box 14. Using the YTD Payroll Register (step ii), add up the value of each of these pay or deduction codes. This value should be the same as that printed on the Totals Report (step III).
Example:
T4A Format Profile Box 28 Other Income = P86, P57
YTD Payroll Register D57 Retirement Severance = $145,000
D86 Retirement Incentive = $97,500
Totals Report Box 46 $242,599
Balancing: P57 + P86 = Total $145,000 + 97,500 = $ 242,500 √ Balanced!