Payroll Services for Businesses

Remit Payroll Deductions on Time

CRA payroll remittances for CPP, EI, and income tax are due by the 15th of the month following payment. Missing your payroll remittance deadline triggers a 3% penalty the first time and up to 10% on repeat offences, plus daily compound interest. On-time payroll remittances are the single easiest penalty to avoid.

Classify Workers Correctly

Misclassifying an employee as an independent contractor to avoid payroll deductions is a top CRA audit trigger. If CRA reclassifies the worker, you owe all unremitted CPP, EI, and income tax plus penalties and interest retroactively. Proper payroll classification from day one protects your corporation from this costly reassessment.

File T4 Slips by the February Deadline

Your payroll T4 Summary and individual T4 slips must be filed with CRA by the last day of February following the calendar year. Late payroll T4 filing triggers penalties of $100 per day up to $7,500 for each failure. We prepare and file all payroll year-end slips as part of every engagement so this deadline is never missed.

Track Taxable Benefits on Payroll

Company vehicles, group insurance premiums paid by the employer, parking, and employee loans must be included as taxable benefits on your payroll. CRA auditors review T4 slips for missing taxable benefits and reassess both the employer and employee. Proper payroll benefit reporting avoids these reassessments and the penalties that follow.

Reconcile PD7A Statements Every Period

CRA sends PD7A payroll statements confirming remittances received for each pay period. Your payroll records must match the PD7A balance exactly. Discrepancies between your payroll books and CRA's trust account trigger compliance reviews and additional penalties. We reconcile every PD7A as part of your payroll processing so mismatches are caught immediately.

Automate Payroll Calculations

Manual payroll spreadsheets miscalculate CPP contributions, EI premiums, and provincial tax rates more often than business owners realize. Automated payroll through Wagepoint or PaymentEvolution applies current CRA payroll tables and thresholds automatically every pay cycle. Automated payroll eliminates the calculation errors that create trust account imbalances with CRA.

Issue ROEs Within Five Days

When an employee leaves or has an interruption in earnings, CRA requires a Record of Employment filed electronically within five calendar days. Late ROE submissions delay your former employee's EI benefits and flag your payroll account for non-compliance. We file every ROE through ROE Web as part of your payroll service.

Maximize Salary for RRSP Room

Paying yourself a salary through payroll creates RRSP contribution room equal to 18% of earned income, up to the annual CRA maximum. Dividends do not create RRSP room. If retirement savings matter to you, your payroll compensation strategy should include enough salary to generate meaningful RRSP room that shelters personal income from tax.

Deduct Employer Payroll Costs Fully

Your corporation's share of CPP, EI, WSIB premiums, and employer health tax are all deductible expenses on your T2 corporate tax return. Many businesses undercount these payroll costs at year-end, leaving legitimate deductions unclaimed. Proper payroll accounting captures every employer contribution so your corporate tax bill reflects the true cost of compensation.

Set Up Payroll Before Your First Hire

Register your CRA payroll account before issuing the first paycheque — not after. Processing payroll without a registered payroll account means remittances have nowhere to go, and CRA assesses penalties from the first missed deadline. We set up your payroll account, pay schedule, and direct deposit integration before your first employee starts.