Whether you are setting up payroll for the first time, transitioning payroll services providers, or moving payroll from in-house to an outsourcing provider, you will find helpful resources and links below to get you started.
We've create a few general payroll tools which you can download here:
The Ultimate 2024 Canadian Payroll Guide
The Ultimate 2024 Canadian Payroll Calendar
Getting Started
Business owners who hire in Canada are required to set up & process payroll in compliance with Canadian laws & legislation. By implementing payroll processes that adhere to legal requirements, employers can minimize the risk of facing fines and penalties for failing to withhold, remit, and report necessary statutory deductions and employer payroll taxes.
The information provided is intended to guide employers in registering their business with the federal government, and various provincial and territorial agencies.
Note: If you are processing payroll for the first time in Canada, you will need to ensure you have a Canadian Business number and Canada Revenue Agency payroll account set up before proceeding any further. Details below.
Every business operating in Canada is required to register with the Canada Revenue Agency (CRA). Additionally, if your business operates in Quebec, you must also register with Revenu Québec (RQ). The CRA defines you as an employer if you:
• you pay salaries, wages (including advances), bonuses, vacation pay, or tips to your employees; or
• you provide certain taxable benefits, such as an automobile or allowances, to your employees.
Registering with the Canada Revenue Agency (CRA)
In order to get started, you will need to ensure you have a business number (BN) or non-resident BN registered with the CRA. A BN is a unique number that allows the CRA to identify a business (or other organization, such as a charity) for tax matters related to business in Canada. It is also used by the federal, provincial and municipal governments to identify the business. Each business requires one BN for its legal entity. A legal entity is defined as a sole proprietor, partnership, corporation, trust or other organization.
Click here for information from the CRA on setting up a Business Number
Setting Up a CRA Payroll Account
In order to process payroll & remit in compliance with federal and provincial legislation, your business will need to set up a CRA payroll account.
To do this you will need a Canadian Business Number or a Non-Resident Business Number.
Employers must register for a payroll program account before the first remittance due date. A payroll program account is an account number assigned to either an employer, a trustee or a payer of other amounts related to employment to identify them when dealing with the CRA.
This 15-character payroll program account number contains the following:
• the 9-digit BN;
• 2 letters for the type of account (for payroll program the letters are “RP”); and
• 4 numbers for the specific account reference.
Depending on the type of business you have, you may need to register other types of program
accounts. The 9-digit registration number will not change, but other letters will be added to the BN. If you are a new remitter, your first remittance due date is the 15th day of the month following the month in which you began withholding deductions from your employee’s pay.
Visit the Canada Revenue Agency website by clicking here for further instructions on this process
Registering with Revenu Quebec
If you operate your business in Quebec, you have to register an account with Revenu Québec (RQ) in addition to registering with the CRA. To register your payroll, import/export or corporation income tax accounts, you will be asked to provide your CRA business number.
An employer is required to withhold and remit Quebec statutory withholdings if any employees:
• report to work at the employer’s establishment in Quebec; or
• do not report to an establishment but are paid through a Quebec establishment.
There are two methods of registering for an account:
1. Use the Registering for Revenu Québec online service
2. File the Application for Registration (form LM-1-V)
For more information on registering your business in Quebec and hours of service,
visit https://www.revenuquebec.ca/en/, or call toll-free at 1-800-567-4692.