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How to do Payroll in Canada.

Whether you have one employee or 50, setting up a payroll system not only streamlines your ability to stay on top of your legal and regulatory responsibilities as an employer, but it can also save you time and help protect you from incurring costly Revenue Canada penalties.

Try our Calculators to calculate your payroll taxes » - It's Free!

Canadian Payroll: Things you'll need to know.

(Updated 4/26/2015)

Canadian Payroll
Payroll Checks »

All provinces,
including Quebec.

  • If you already have a Business Number, you will just be adding a Payroll account to your existing Canada Revenue Agency accounts. If you don't have a Business Number already, you will have to get one first, which is easy to do; you can contact the Canada Revenue Agency by phone at , mail or fax, or register for a online.
  • Collect required information from employees, such as their social insurance number (SIN) and a completed .
  • You may need to register for a

    In Quebec, Revenu Québec administers the GST/HST, unless you are a selected listed financial institution. If your business is located in Quebec, visit the .
  • There are also a few other tax accounts that you will need a business number for, if they apply to you, such as Excise Tax. See the complete list of other accounts (Canada Revenue Agency).

    Quebec employers deduct QPP contributions instead of CPP contributions.

    The contribution rates for QPP are higher than those for CPP. Although the year's maximum pensionable earnings ($52,500 for 2014) and annual basic exemption ($3,500) for both plans are the same, an employee paying into the QPP will pay contributions at a higher rate (5.175% for 2014) compared to the rate for an employee who pays into the CPP (4.95% for 2014).

    For more information on deducting and remitting the QPP, see , which you can get from .

  • You have to deduct employment insurance (EI) premiums from each dollar of insurance earnings up to the yearly maximum. As an employer, you must contribute 1.4 times the amount of EI premiums.

"How to"... Instructions

• Canadian Payroll Calculator »

• CPP Contribution in Canada »

Please note: Our explanation that are provided on our web site for "How to do Payroll in Canada" are only meant to provide general guidance about the payroll process. They should not be relied upon to calculate exact taxes, payroll or other financial data. You should consult with a professional advisor or accountant regarding your specific payroll concerns.

To speak with an Online Payroll expert call • or contact us by email.

Learn more about managing your business | Independent Contractor | Employee Handbook Information | Acronyms for Payroll | Workers Compensation

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