How Do I Set Up Payroll in Canada?
To run payroll in Canada, you need a CRA payroll program account (RP account). Register through your CRA My Business Account or by calling CRA. You'll receive a 15-character payroll account number used for all remittances and T4 filings.
What Are Source Deductions?
Source deductions are amounts you must withhold from employee pay and remit to CRA: Federal and provincial income tax, CPP contributions (employer matches employee portion), EI premiums (employer pays 1.4x employee portion). Use CRA's Payroll Deductions Online Calculator for accurate calculations.
When Are Payroll Remittances Due?
Remittance frequency depends on your average monthly withholdings: Regular remitter (under $25,000/year): Due by 15th of following month. Quarterly remitter (under $3,000/year for new employers): Due quarterly. Threshold 1 ($25,000-$99,999.99/year): Due by 25th of following month. Threshold 2 ($100,000+/year): Due within 3 days of pay date.
What T4 Information Do I Need to File?
T4 slips report employee earnings and deductions annually. Due date: Last day of February. Required information: Total employment income, income tax deducted, CPP contributions, EI premiums, RPP contributions, union dues, and other deductions.