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Canada Payroll


Open or manage a payroll account

Initial Setup and Registration:

We assist businesses in registering for a payroll account with the Canada Revenue Agency (CRA). This involves completing the necessary forms, obtaining the required identification numbers, and setting up the account with the CRA.

Customized Payroll Solutions:

We offer tailored payroll solutions to meet the specific needs of each client. Whether it's managing payroll for a small business or a large corporation, our services are designed to accommodate various payroll structures and employee arrangements.

Employee Onboarding Assistance:

We help businesses collect and organize employee information required for payroll processing. This includes personal details, banking information for direct deposit, and tax forms such as Form TD1.

Payroll Processing Services:

Our team handles all aspects of payroll processing, including calculating employee wages, deductions, and benefits. We ensure accurate calculations and timely payments to employees while complying with tax regulations and statutory requirements.

Deduction Management:

We manage deductions such as federal and provincial income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums on behalf of businesses. We ensure that deductions are accurately calculated and remitted to the appropriate government agencies.

Direct Deposit and Paycheck Distribution:

We offer convenient payment options for employees, including direct deposit and traditional paper checks. Our secure payment methods ensure timely and reliable delivery of net pay to employees.

Record-Keeping and Compliance Reporting:

We maintain detailed records of payroll transactions and provide comprehensive reporting to businesses and government agencies as required. This includes preparing and filing T4 slips for employees and T4 Summary forms summarizing annual payroll information.

Tax Compliance Support:

Our team stays updated on changes in tax laws and regulations to ensure businesses remain compliant. We provide ongoing support and consultation to address any tax- related inquiries or concerns.

Customer Support and Training:

We offer dedicated customer support to businesses and their employees, assisting with payroll-related inquiries and providing training on payroll processes and software if needed.

Issue ROEs for Employees:

Before closing the payroll account, we issue ROEs for all employees who have stopped working for our business. The ROE provides information about employment history, such as earnings and insurable hours, and is necessary for employees to apply for Employment Insurance (EI) benefits.

Set up and manage employee payroll details

Employee's Social Insurance Number (SIN):

You'll need to ask your employee for their SIN. It's a unique number assigned to them for things like taxes and benefits.

Province of Employment:

Find out where your employee works. This helps determine which province's tax rules apply to them.

Completed TD1 Forms:

Before paying your employee, make sure they've filled out their TD1 forms. These forms help calculate how much tax to take off their pay.

Increasing or Reducing Income Tax Deducted at Source:


If your employee wants less tax taken off their pay upfront, they can claim more tax credits on their TD1 form. This means they keep more money in each paycheck.


If they want more tax taken off, they can claim fewer tax credits on their TD1 form. This might be necessary if they have other income sources or deductions and want to avoid owing money at tax time.

Calculate payroll deductions and contributions

CPP Contributions (Canada Pension Plan):

  • CPP contributions are like savings for your retirement. When you work and earn income, you and your employer both contribute to the CPP fund.
  • The amount you contribute depends on how much you earn, up to a certain limit. For 2024, the maximum annual contribution is based on earnings up to $64,900.
  • The CPP contribution rate is a percentage of your earnings. As of 2024, it's 5.7% for both you and your employer on earnings up to the yearly maximum.

EI Premiums (Employment Insurance):

  • Employment Insurance is like insurance in case you lose your job or take parental, maternity, or sickness leave.
  • Both you and your employer contribute to EI premiums based on your earnings.
  • Income tax is money taken from your paycheck to pay for government services, like healthcare and education.
  • The amount of tax you pay depends on how much you earn and certain deductions or credits you might be eligible for.
  • Your employer withholds a portion of your earnings for income tax based on your tax bracket and other factors.

Calculating Deductions:

To calculate deductions, you typically need to know your gross income (your total earnings before any deductions), then apply the appropriate rates or amounts for CPP, EI, and income tax.

  • For CPP and EI, you multiply your earnings by the contribution rates mentioned above.
  • For income tax, your employer will use tax tables provided by the government to determine how much to withhold based on your income, deductions, and credits.
  • Deducting from Benefits and Special Payments: Whether you need to deduct CPP, EI, and income tax from benefits or special payments depends on the nature of the payment.
  • CPP and EI: If the payment is considered insurable or pensionable, you may need to deduct CPP and EI contributions.
  • Income Tax: Income tax may need to be deducted from most types of income, including benefits and special payments. However, some payments may be tax-exempt.
  • It's important to stay updated with the latest rates and regulations, as they may change from year to year. Additionally, consulting with a tax professional or using online calculators can help ensure accurate deductions.

Remit (pay) payroll deductions and contributions

Collecting Deductions:

  • Employers deduct CPP contributions, EI premiums, and income tax from their employees' paychecks based on the amounts calculated according to the employees' earnings and the relevant rates.
  • Employers may also deduct other amounts like union dues or pension plan contributions if applicable.

Keeping Records:

Employers must keep accurate records of the deductions made from each employee's pay, including the amounts withheld for CPP, EI, and income tax.

Remitting Deductions:

  • Employers are required to remit (pay) the total amount of deductions collected from their employees' paychecks to the Canada Revenue Agency (CRA) and to any other relevant organizations.
  • Typically, employers must remit these deductions to the CRA on a regular basis, either monthly, quarterly, or annually, depending on the total amount of deductions collected.

Payment Deadlines:

  • Employers must adhere to specific deadlines for remitting deductions. These deadlines vary depending on the remitting frequency and the type of deduction.
  • Late remittances may result in penalties and interest charges.

Remitting Contributions:

  • In addition to deductions from employees' pay, employers must also remit their portion of CPP contributions and EI premiums to the CRA.
  • These contributions are separate from the deductions withheld from employees' pay and are based on the employer's portion of the CPP and EI rates.

Using Online Services:

  • The CRA provides online services for employers to remit payroll deductions and contributions electronically. These services streamline the remittance process and ensure timely payments.

Compliance and Reporting:

  • Employers are responsible for complying with all regulations related to payroll deductions and contributions, including accurately calculating and remitting the correct amounts.
  • Employers may also be required to file various forms and reports with the CRA to report their payroll activities.
  • File payroll information returns (slips and summaries)
There are several types of payroll information returns that employers may need to file, depending on the nature of their business and their employees' employment status. The most common ones include:

T4 Slips and Summary:

Used to report employment income, deductions, and contributions for employees.

T4A Slips and Summary:

Used to report various types of income, such as pensions, retiring allowances, and other income.

T5 Slips and Summary:

Used to report investment income, such as dividends and interest payments.

T5018 Statement of Contract Payments:

Used to report payments made to subcontractors in the construction industry.

Preparing Payroll Information:

Employers must gather and organize payroll information for each employee or contractor, including details such as employment income, deductions (CPP, EI, income tax), and contributions (CPP, EI).

This information is typically collected throughout the year as part of the payroll process.

Completing Slips and Summaries:

Employers must complete the appropriate slips (e.g., T4, T4A, T5) for each employee or contractor, ensuring that all relevant information is accurately reported.

Employers also need to complete a summary for each type of slip, which summarizes the total amounts reported on the individual slips.

Filing with the CRA:

  • Once the slips and summaries are completed, employers must file them with the CRA. This can be done electronically through the CRA's online services for businesses or by mailing paper copies to the appropriate tax center.
  • The filing deadline for most payroll information returns is the last day of February following the end of the calendar year, although specific deadlines may vary depending on the type of return and the method of filing.

Providing Copies to Employees/Contractors:

  • Employers are also required to provide copies of the slips to their employees or contractors by the end of February.
  • These copies are used by individuals when filing their personal income tax returns.

Penalties for Late or Inaccurate Filing:

  • Failure to file payroll information returns on time or accurately can result in penalties and interest charges imposed by the CRA.
  • It's essential for employers to meet their filing obligations and ensure the accuracy of the information provided.