The payroll should be entered with the date it is paid. In this case it appears as a 2017 entry. Even if the pay period ends on December 31, 30 or earlier but it is not paid to the employee until January 2, 3 or later. For CRA purposes and reporting the pay is based on when paid not when earned.
For some companies you may want to accrue the pay that was earned in 2016 with a general journal entry at the end of the year if it is also the end of a fiscal period. The entry is then reversed on January 1 as the full accounting will be done when the payroll is processed.