Payroll

Canadian employers are required to establish a Payroll Account with The Canada Revenue Agency (CRA).   A payroll account can be added to an existing business number (BN). 

Employers are responsible for ensuring that the people they hire are eligible to work in Canada.  This is accomplished by obtaining the employee’s Social Insurance Number (SIN) and keeping it on file.  The employee must show you his/her SIN card or letter. If the SIN number begins with a “9” you are also required to confirm that the employee is authorized to work in Canada and has a valid immigration document.

Employers are required to remit legislated payroll deductions and employer contributions to CRA by the due date, or there may be a penalty.  Unless other arrangements exist, remittances are to be made by the 15th of the month following that in which they were taken.  Legislated remittances include:

  • Income Tax
  • Tax on taxable benefits and other taxable amounts
  • Canada Pension
  • Employment Insurance

Employers must provide each employee with a Statement of Earnings for each pay period.

Employers must report employees’ annual income on a T4 or T4A slip, and file an information return on or before the last day of February of the following year.

Paper and electronic payroll records must be kept for a minimum of six years.

Payroll processing can be outsourced: for example, both ADP Canada and Ceridian Canada provide services for small business: ADP Canada defines a small business as one with 1 – 49 employees.

USEFUL LINKS: (provided for information only: I do not endorse any organization)

Canada Revenue Agency Payroll Information: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/menu-eng.html

Federal Government Payroll Deductions On-Line Calculator:  http://www.cra-arc.gc.ca/pdoc/

Canada Revenue Agency Payroll Guide:  http://www.cra-arc.gc.ca/E/pub/tg/t4001/t4001-11e.pdf

ADP Canada: http://adp.ca/

Ceridian Canada: http://ceridian.ca/

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