Get Started With Payroll in Canada
Figuring out payroll deductions can be a daunting task. Rules change every year and you could be faced with that dreaded letter from the government telling you to top-up your remittances to them. However, if If you have recently started hiring people or if you want to learn more about how to do your payroll in Canada, these steps should help you get started.
Steps
- Determine what pay frequency will be best for your company, such as weekly, biweekly (most frequently used), monthly, semimonthly etc.
- Develop a timekeeping system to track employees’ hours, such as time sheets, time clocks, schedules etc.
- Determine method of calculating the employees’ wages and deductions, whether it be through purchasing software to perform calculations internally or hiring a payroll service provider.
- Remit CPP, EI and Income Tax deductions as well as employer portions of CPP and EI to CRA based on your frequency discussed above.
- T4 and T4A slips must be filed with CRA no later than the last day of February of the following calendar year to report employees’ income and deductions.
- Payroll records and files must be kept for six years.
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