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Initialize Employee Totals

**The Tax Update isn't available yet, so you can't Initialize Employee Totals yet. We'll know more once the CRA and MRQ to release their tax changes. Check back soon for more information!**

Initialize Employee Totals performs a variety of tasks to prepare the system for the New Year. Initialize Employee Totals can only be done once per year and should only be done after all pays for the year have been processed and updated.

Additional Information
Please ensure you have created a copy of your company before starting this process, as this process cannot be reversed or interrupted.

Go to Backup Your Company to a Test Company for more information on copying your company.

Overview

Initialize Employee Totals prepares employees and rates for the new payroll year. Additionally, you can remove employees after you choose to permanently delete terminated employees from Avanti. Initialize Employee Totals can only be done once per year, after all payments for the current year are processed and updated.

During Year-End, Initialize Employee Totals will automatically:

  • Create new prior year records for each employee and set current year-to-date totals to zero:
    The previous year data for the employee will be removed, current year data will be transferred to Previous Year data, and new prior year data will be loaded for each employee.

  • Remove and move all employee earning and deduction YTD totals to the previous year.

  • Update the Federal and Provincial Tax Factors for employees:
    You can select what will happen to the tax factors

    • Set employee Federal and Provincial 2021 tax factors to 2022 values:
      All tax factors for employees are set with the new factors for the new tax year.

    • Set employee Federal and Provincial 2022 tax factors to Zero:
      Sets all the Basic Personal Amounts to their new maximum. All other factors are set to zero, so no indexing is applied.
      For jurisdictions with two maximums for Basic Personal Amount, the maximum is set based on the Program Option. For more information, go to Basic Personal Amount for Federal, Nova Scotia and Yukon TD1s.

  • Set Regular CPP, QPP, EI, and QPIP to new rates:
    Sets all the regular CPP/QPP rates for the New Year.

  • Copy WCB rates and maximum assessable earnings to the previous year:
    The previous year data for WCB rates and maximum assessable earnings will be removed and the current year data will be transferred to the previous year.

In addition, you can choose to delete employees who were terminated more than six years ago. During this step, you can choose to:

  • Retain all employees

  • Delete all employees

  • Delete employees, but retain some based on Employment Status.

Additional Information
For CRA compliance, employee pay records must be retained for 7 years after the employee was last paid. Provincial compliance for employee pay records varies by jurisdiction. 

Want more information on which employees are terminated? Go to Reviewing Terminated Employees.

Prior to Initializing Employee Totals

Initialize Employee Totals finalizes payroll for the current year and makes adjustments to prepare for the upcoming payroll year.

Prior to running Initialize Employee Totals, please ensure:

  • All 2021 payroll batches are processed and updated.

  • All payroll batches are set to incomplete.

  • All 2021 entitlements have been paid out (if applicable).

  • All 2021 manual and cancelled payments are processed and updated.

  • All 2021 payrolls are processed and updated, including adjustments and off-cycles.

  • A copy has been made of your company.

  • You have exclusive use of Avanti, including the Avanti Self-Service Portal if applicable. No other process can run during Initialize Employee Totals and all other Avanti users should be logged out.

Please go to the Year-End Checklist for more information.

Initialize Employee Totals

Step 1: Open Initialize Employee Totals.
By default, this can be found in Canadian Payroll >> Year-End.

Step 2: Select action for Federal/Provincial Tax Factors.

  • Select Set Federal and Provincial 2021 tax factors to 2022 values to adjust all indexed items to the indicated maximum, according to the CRA, using the January 1, 2022 index factors. Any values that are not updated will be displayed in the Result Listing once Initialize Employee Totals is complete.

  • Select Set employee Federal and Provincial 2022 tax factors to zero to adjust all tax factors, except Basic Personal Amount, to zero. 

Step 3: Determine whether you want to permanently delete terminated employees from Avanti.

  • If you want to retain all employees, please adjust the Remove employee Terminated on or before to December 31, 1900 and skip to Step 6.

  • If Remove employee Terminated on or before is not displayed, skip to Step 6.

Additional Information
The option to Remove employee Terminated on or before may not be displayed, based on the setup. For more information, go to Review the Terminated Employees who can be Deleted During Initialize Employee Totals.

Step 4: Select a date to Remove employees Terminated on or before, if you want to remove terminated employees. Only employees terminated on or before this dated will be deleted from Avanti.

Additional Information
For CRA compliance, employee pay records must be retained for 7 years after the employee was last paid. Provincial compliance for employee pay records varies by jurisdiction. 

Step 5: Select Employment Status of employees to remain in Avanti.

Additional Information
Unsure which employment status is assigned to an employee? Go to Reviewing Terminated Employees for a report that can display terminated employees and their employment status.

Step 6: Select OK.

Additional Information
No other programs can run in Avanti while this process is being completed. This process may take a while, depending on the size of the company and the number of employees that are being deleted.

Step 7: A message will appear to confirm that you want to Initialize Employee Totals. This is the final opportunity to cancel the process:

  • Select No to cancel the initialization

  • Select Yes to proceed with the initialization.

Step 8: Once Yes has been selected, the process will commence and the results listing will indicate:

  • When the initialization process was started and finished

  • Any employees that were deleted

  • Any Federal/Provincial TD1 values that are not updated, if Set Federal and Provincial 2021 tax factors to 2022 values was selected.

We recommend printing or saving the results if any employee information is displayed. This process can only be run once, but if the user does try to re-run the program the results listing can be printed.

Congratulations, your employees are now ready for 2022! The next step in the year-end process is Initialize Entitlements and Vacation.

W
Will is the author of this solution article.

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