Our professional team will take care of your paystubs, direct deposits, source deductions, T4s, and ROEs, providing comprehensive Payroll Accounting Services tailored to your business needs.
Canadian federal and provincial payroll regulations are constantly evolving and can be challenging for businesses unfamiliar with the nuances.
We will keep you informed about all applicable labour laws, including:
We provide a comprehensive range of Payroll Processing Services using the latest payroll software with fully updated deduction rates, ensuring accurate and compliant payroll management.
Subcontractor and Commission Wages T4A, T5018- Payments of $500 or more made to independent contractors and freelancers should be declared to the CRA through a T4A or T5018 by the last day of February in the following year.
Dividend paid- T5- Payments made to corporate shareholders have to be declared to the CRA through a T5 slip by the last day of February in the following year. These payments need to be categorized as eligible or ineligible dividends accordingly.
Interest paid T5- Interest Paid to investors should be declared to the CRA through a T5 slip by the last day of February in the following year.
Payments from a Trust T3- Income from dividends, interest and capital gains issued from a Trust is declared through a T3 slip.
You are required to register a payroll account in the following scenarios- hiring employees, providing benefits and pensions, payment to non-employees where a T4A is required, and/or payments to Corporate directors.
These withholding taxes are calculated based on prescribed rates outlined by the CRA and provincial finance ministry. Rates may vary based on salary, age, year of payment, and exemptions. There are reliable software and online calculators to determine the accurate payroll deductions.
Payroll intervals can vary between weekly, biweekly, semi-monthly or even monthly. It is based on the agreement you have with your employees. Most common practice in Canada is biweekly.
Some of the most common information you will need are: Full Name, SIN #, Date of Birth, Address, direct deposit information, Fed and provincial TD1 forms to be filled in.
Payroll is the process of calculating and distributing employee compensation, including wages, deductions, and taxes. It’s crucial for your Canadian business to ensure that employees are paid accurately and that you comply with tax and labor laws.
Payroll deductions include income tax, Canada Pension Plan (CPP), and Employment Insurance (EI). Deductions are based on employee earnings and tax brackets.
You need to make sure a business number is set-up with the CRA, then a RP account can be registered via mail, phone or online. When registering an RP account you need to have all of the necessary information ready.
“Employees have taxes and deductions withheld, whereas contractors are responsible for managing their own taxes. Misclassifying can result in legal complications. Explore our ‘Employee vs. Contractor’ blog to learn about the key factors to consider.”
You should keep records of
The T4 slip summarizes an employee’s income, and deductions in a calendar year. It should be filed annually with the CRA by the end of February.
Each province has its own set of regulations governing statutory holidays and vacation pay, and it’s crucial to adhere to the rules relevant to your specific province. Additionally, the type of pay (hourly or annual salary) can impact these regulations.
Part-time and temporary employees should have payroll deductions calculated based on their earnings, similar to full-time employees.
Yes, many businesses outsource payroll to specialized providers who can handle all aspects of payroll processing
Non-compliance can result in penalties, interest charges, and legal consequences. It’s essential to follow payroll regulations to avoid these issues.
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