Canadian employers running Dynamics 365 Business Central hit the same wall every year. Business Central ships strong general ledger, dimensions, bank reconciliation and vendor payment plumbing, but the Canadian localization does not calculate statutory payroll. There is no CPP contribution engine, no EI premium calculation, no federal and provincial income tax deduction logic honouring TD1 and TD1-provincial claim codes, and no T4, T4A or Record of Employment output. Finance teams end up exporting hours to a third-party payroll bureau, keying a summary journal back into the general ledger by hand, and rebuilding year-end boxes in a spreadsheet each January — with no audit trail linking a T4 box back to the pay run that produced it.

We build a payroll and year-end AL extension for your tenant. Deduction tables live in versioned setup tables (CPP Rate Setup, EI Rate Setup, Tax Bracket Setup) keyed by tax year and province of employment, so an annual CRA rate change is a data entry rather than a redeployment. A calculation codeunit implements the CRA's cumulative-averaging and bonus-tax methods, applies year-to-date pensionable and insurable earnings ceilings, prorates the CPP basic exemption by pay frequency, respects per-employee CPP and EI exemption flags, and handles QPP, QPIP, the Quebec provincial tax table and the reduced Quebec federal EI rate where the province of employment is QC. Earnings and deduction codes carry posting setup so each pay run posts one fully dimensioned journal to the correct G/L accounts, employer-cost accruals included. The employee card gains a table extension and page extension for SIN, province of employment, TD1 claim amounts, exemption flags, pay group and direct deposit banking, all gated by a dedicated permission set so payroll data is not visible to the whole finance team.

Year-end and interim outputs are generated from the same posted pay-run ledger that produced the general ledger entries — never re-keyed. T4 and T4A slips build box by box from a configurable box mapping table (boxes 14, 16, 18, 22, 24, 26, 44, 52 and the other-information codes), with a preview page for review, employee PDF slips, the CRA XML return for electronic filing, and an amended/cancelled slip path. Records of Employment assemble insurable hours and earnings across the correct number of pay periods for the employee's pay frequency, with reason codes and comments, ready for ROE Web. PD7A remittance summaries roll employee and employer CPP, EI and income tax by remitting period and remitter type, reconciling against posted G/L balances. Payslips render as PDF for email, and bank files export in CPA Standard 005 format with a header layout configured per your financial institution. Recurring work — payslip distribution, remittance reminders, ROE generation on termination — runs through job queue entries. API pages published over the REST API v2.0 / OData v4 endpoint expose pay runs, employee YTD balances and slip data to Power BI, Power Automate and Dataverse, so an HR system of record can feed employee changes in without double entry.

This is a build-to-order product, not a Microsoft AppSource download. After a scoping call we confirm your pay frequencies, provinces of employment, earnings and benefit codes, taxable benefit treatment, union or pension deductions, G/L posting map, bank file format and Business Central deployment model — SaaS online or on-premises. We then develop against your release wave, deliver as a per-tenant extension (or prepare an AppSource submission package if you want it published under your own publisher account), and install first on a sandbox copy of production. You run a parallel payroll against your current provider's register to the cent before anything posts to the live general ledger. Typical delivery is one working week from confirmed scope, and year-end T4 work should be scheduled well ahead of the CRA filing deadline. You receive the full AL source and the git repository, so you are never locked to us.