Payroll
Payroll Information
If you hire staff on an hourly basis, you are an employer. You will need to set up a Canada Revenue Agency (CRA) Business and Payroll Program Account and ensure you are doing payroll properly and remitting all the necessary deductions to the CRA. You can also hire an accountant or bookkeeper to support you with this.
Mandatory Paperwork
Once you have a Business Number and Payroll Program Account, you must do the following:
Employee Paperwork
Each employee must complete the following forms before they start work:
These forms are used to determine the correct amount of income tax to deduct from their wages.
Employer Paperwork
The following payroll deductions must be completed and submitted to the Receiver General at the CRA:
- Canada Pension Plan (CPP) (employer and employee contribute)
- Employment Insurance (EI) (employer and employee contribute)
- Income Tax (employee contributes)
End of the Year Paperwork
Employers must complete a T4 for each employee at the end of year.
Remittances
Decide how you will make your monthly EI, CPP, and income tax payments/remittance to the Receiver General:
- Talk to your bank to find out how you can set up online banking or My Payment. These options are not available at all banks. If you pay this way you will not receive a remittance form in the mail, however, you can set up a Manage Online Mail service to receive the form through email or call 1-800-959-5525 to receive a paper copy.
- Pay at your bank using the CRA form you will receive in the mail.
- Mail the CRA form you will receive in the mail with your cheque.
Whichever way you decide to pay the Receiver General, it is important that you pay on time. If your payments are late, you will be fined.
The CRA will let you know if you are required to remit monthly or quarterly. If your remittance is monthly, the CRA must receive your payment before the 15th day of the following month. If your remittance is quarterly, the CRA must receive your payment before the 15th day of the month following each quarter.
Decide Who will Complete Payroll
Hire an Accountant or Bookkeeper
Most Microboards, Person Centred Societies, and Individualized Funding Standard contracts will include 3% for administration funds, which can be used to hire a payroll company, bookkeeper, or accountant to complete your payroll.
Ask your Vela mentor for recommendations in your community.
Note: If your bookkeeper or accountant is registered with the CRA to represent clients,
you can give them access to your payroll account by:
- Using the “authorize or manage representatives” online service in My Business Account.
- Completing form RC59 Business Consent.
Manage Payroll Yourself
If you do not wish to hire someone to do your payroll, you can do it yourself using one of the following options:
- The Payroll Deductions Online Calculator. This produces a report for the employer with the amount to be remitted to the CRA.
- An online payroll deductions calculator such as webTOD.
- Computer software payroll program.
- A payroll book – there are many types available, and you can do it by hand using a calculator
