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Payroll Services · Dental Offices · Licensed CPA Ontario

Payroll Services for Dental Offices

Dental office payroll turns on one question most software cannot answer: which of your people are employees and which are genuine contractors. Get the associate, hygienist and assistant classification right, run source deductions and remittances correctly, and file clean T4s and T4As, all handled by a licensed CPA.

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Wagepoint Payroll Partner
Classification Done Right
Associate, hygienist and assistant status confirmed before payroll runs
Remittances On Time
CPP, EI and tax remitted by the 15th, every month
Evenings & Weekends
Support until 9 PM, 7 days a week

The One Question That Decides Your Dental Payroll

A dental office is not a simple payroll. Your front desk, treatment coordinators and assistants are always employees, on payroll with income tax, CPP and EI withheld. But your associates and hygienists sit on a line the CRA watches closely, and where they fall decides everything: whether you withhold and remit, whether you owe the employer share of CPP and EI, and whether you are exposed if the CRA looks again.

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Gondaliya CPA team

Our Dental Office Payroll Services

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Worker Classification

Every associate, hygienist and staff member reviewed against the CRA control, tools and integration test before payroll runs.

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Pay Run Processing

Biweekly or semi-monthly runs on Wagepoint. Income tax, CPP and EI withheld correctly on every cheque.

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Source Deductions

CPP, EI and income tax remitted to the CRA by the 15th of every month. Never late, never a penalty.

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ESA Compliance

Overtime after 44 hours, 4 percent vacation pay and public holiday pay calculated to the correct ESA formula.

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EHT & WSIB

Ontario Employer Health Tax and WSIB calculated and remitted where they apply, alongside your regular payroll.

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T4 & T4A Filing

Year-end T4 and T4A slips and summaries filed by the February deadline, with the employee split correct.

Dental Payroll by a Licensed CPA

Every part of dental office payroll handled correctly, from classification to year-end slips. All fees include HST.

1

Associate Dentist Classification

The single most audited question in a dental office. We get it right before payroll starts.

  • Review each associate against the CRA control, tools, chance of profit and integration test.
  • Employee associates go on payroll with a T4 and full source deductions withheld.
  • Genuine contractor associates are paid gross on a T4A or through their Dental Professional Corporation.
  • Document the contractor relationship with proper engagement agreements to defend the treatment.
  • Flag any incorporated associate at risk of Personal Services Business reclassification.
2

Hygienist Classification

Most hygienists are employees, despite the common practice of paying them as contractors.

  • A hygienist on a set schedule using clinic equipment is an employee on payroll.
  • A hygienist with their own clients, own instruments and multiple clinics may be a contractor.
  • Per-diem hygienists are reviewed annually, because a regular fixture becomes an employee.
  • CRA scrutiny of per-diem arrangements is high, so the classification is confirmed each year.
  • Employees get a T4, genuine contractors a T4A, with no CPP or EI at the practice.
3

Support Staff Payroll

Assistants, reception and office staff are always employees. No contractor argument.

  • Dental assistants and chairside staff on payroll with income tax, CPP and EI withheld.
  • Reception, treatment coordinators and office managers processed the same way.
  • Regular hours tracked, overtime applied at time and a half after 44 hours in a week.
  • Vacation pay at 4 percent under five years of service, 6 percent after.
  • T4 slips issued to every employee at year end.
4

Owner Dentist Compensation

Salary from the DPC runs through payroll and coordinates with your tax plan.

  • Owner salary processed on payroll with source deductions and a T4.
  • Salary builds RRSP room and is a deduction to the corporation.
  • Coordinated with your salary-versus-dividend mix for the year.
  • Bonuses calculated using the CRA bonus method for accurate withholding.
  • Payroll integrated with the DPC year end so wage expense flows through cleanly.
5

CRA Remittances & Deadlines

Interest compounds daily from the due date. We never miss a remittance.

  • Income tax, CPP and EI, plus employer shares, remitted by the 15th of the following month.
  • Wagepoint tracks the schedule and submits on your behalf as part of each run.
  • Late remittance penalties start at 3 percent and rise to 10 percent, all avoided.
  • Employer Health Tax remitted once payroll exceeds the exemption threshold.
  • WSIB premiums calculated and reconciled where coverage applies.
6

Year-End Slips & Audit Support

Clean slips and reconciliations keep your practice audit-ready.

  • T4 slips for employees and T4A slips for genuine contractors filed by February.
  • The employee-versus-contractor split confirmed correct on every slip.
  • Records reconciled so payroll stands up if the CRA reviews the practice.
  • Documentation prepared to support contractor treatment in an audit.
  • Prior-year errors corrected and brought current where the practice is behind.

Free Dental Office Payroll Consultation

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Case Studies

Hygienist Reclassification Avoided

A Toronto practice paid three hygienists as contractors on T4A. On review, all three worked set schedules with clinic equipment and could not subcontract, textbook employees. We moved them onto payroll before a CRA review, avoiding a reassessment for years of unremitted CPP and EI plus penalties. The figures here are illustrative of the work we do, not a specific client file.

Reassessment exposure removed

Associate Paid Correctly Through DPC

An associate dentist genuinely independent, own hours, multiple clinics, own instruments, was being put on payroll unnecessarily. We confirmed the contractor relationship, documented it against the PSB risk, and had the practice pay the associate's Dental Professional Corporation gross, correctly and cleanly. The figures here are illustrative of the work we do, not a specific client file.

Correct T4A treatment, PSB risk documented

Late Remittances Brought Current

A growing practice had fallen behind on monthly remittances and was accruing daily interest and penalties. We took over the payroll, brought the remittances current, and set up Wagepoint to submit automatically each run. The practice has not missed a deadline since. The figures here are illustrative of the work we do, not a specific client file.

Back on schedule, penalties stopped

Multi-Location Practice Consolidated

A three-location group had inconsistent classification across sites and duplicated payroll admin. We consolidated payroll, standardised the employee-versus-contractor treatment, and gave the owner one clean set of T4s and T4As at year end. The figures here are illustrative of the work we do, not a specific client file.

One consistent payroll across sites

Who Is an Employee and Who Is a Contractor

The CRA applies a control, tools, chance of profit and integration test to every worker. Here is how it usually falls in a dental office. We confirm each case on its own facts before payroll runs.

RoleUsual StatusPayroll Treatment
Dental assistant / chairsideAlways employeeT4, income tax, CPP and EI withheld
Receptionist / treatment coordinator / office managerAlways employeeT4, full source deductions
Hygienist on a set schedule with clinic equipmentEmployeeT4, full source deductions
Hygienist with own clients, own instruments, multiple clinics, invoices the practicePossible contractorT4A, no CPP/EI at practice, high CRA scrutiny
Associate working set hours under the owner's directionEmployeeT4, full source deductions
Associate: own hours, multiple clinics, own tools, paid on own billingsContractorPaid gross, T4A or paid via their DPC
Owner dentist taking a salaryEmployee of the DPCT4, source deductions on salary portion

Most hygienists are employees. The widespread practice of paying hygienists as contractors is exactly what the CRA audits dental offices for. If a worker looks like an employee in substance, calling them a contractor does not change the obligation, it just delays the bill. Please confirm each classification before payroll is set up. See our CPA services for dentists.

The Personal Services Business Trap for Associates

Many associates incorporate a Dental Professional Corporation and have the practice pay the DPC rather than the individual. The RCDSO permits this, and the CRA respects it, but only when the contractor relationship is genuine and documented. When the substance is really employment, an associate working set hours, using the practice's chairs and staff, treating the practice's patients, the CRA can treat the DPC as a Personal Services Business.

The consequences are severe. A Personal Services Business loses the small business deduction, is taxed at the full corporate rate, and cannot deduct most ordinary business expenses. An associate who thought incorporating would save tax can end up worse off than either an employee or a genuine contractor. We screen every incorporated-associate arrangement for this risk before it is set up, and we say so plainly when the structure will not hold.

Incorporation does not settle classification. Paying a DPC instead of a person does not make an employment relationship into a contractor one. The facts of the working relationship decide it, and the CRA looks through the corporation to those facts. Please have the arrangement reviewed before you rely on it.

Per-Diem and Contractor Hygienists: Handle With Care

A per-diem hygienist covering vacation days can be a genuine contractor, but the arrangement must be real and confirmed every year. Drift into a regular schedule and the status changes.

FactorPoints Toward ContractorPoints Toward Employee
ScheduleFree to decline days, works ad hocFixed weekly schedule set by the practice
InstrumentsBrings own instrumentsUses clinic equipment
Other clinicsMaintains clients at several practicesWorks only at your practice
BillingInvoices the practicePaid a regular wage each period
DirectionControls how work is doneFollows the owner's protocols

Confirm per-diem status every year. A hygienist who started as an occasional per-diem but now works most Tuesdays and Thursdays has become an employee, whatever the original agreement said. The CRA looks at the current reality, not the label. We reassess annually so the treatment stays correct.

ESA Rules and CRA Remittances for Your Employees

For everyone who is an employee, Ontario's Employment Standards Act and the CRA remittance rules apply in full. These are where day-to-day payroll errors happen.

ObligationThe RuleWhy It Trips Practices Up
OvertimeTime and a half after 44 hours in a weekSalaried staff still have overtime rights on their regular rate
Vacation pay4% of gross under 5 years, 6% after 5 yearsVacation pay and vacation time are two separate duties
Public holiday payESA four-week formula, not a normal day's payPractices often just pay a regular day, which is wrong
Remittance timingBy the 15th of the following month for monthly remittersInterest compounds daily from the due date, no grace period
Late remittance penalty3% rising to 10% the later it isA single missed month can be an expensive lesson
Year-end slipsT4 and T4A with summaries by the February deadlineThe employee-versus-contractor split must be right on the slips

What Our Dental Office Payroll Service Includes

Everything from classification to year-end slips, on a flat monthly fee. No hourly billing. All fees include HST.

IncludedWhat We Do
Worker classification reviewWe confirm each associate, hygienist and staff member's status before payroll runs.
Payroll setup and processingWe open your CRA payroll account if needed and run every pay cycle on Wagepoint.
Source deductions and remittancesWe withhold income tax, CPP and EI and remit to the CRA on time each month.
ESA complianceWe apply the correct overtime, vacation and public holiday rules.
EHT and WSIBWe calculate and remit Ontario EHT and WSIB where they apply.
Year-end slipsWe prepare and file T4, T4A and the summaries by the February deadline.

Why Choose Gondaliya CPA for Dental Office Payroll?

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Dental Classification Expertise

We know exactly where the CRA draws the employee-versus-contractor line in a dental office.

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Licensed CPA Ontario

A certified CPA team stands behind every pay run and every slip.

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Flat Monthly Fee

All fees including HST, no hourly billing, no year-end slip surprises.

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Fully Remote

Payroll delivered through our secure portal, wherever your practice is.

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Transparent Flat-Fee Dental Payroll Pricing

ServiceFeeFrequencyDetails
Payroll Setup & Classification ReviewFREEOne-timeWorker classification confirmed and CRA payroll account opened with your first engagement.
Small Practice PayrollQuoted upfrontMonthlyUp to a handful of staff, full source deductions and remittances.
Multi-Chair Practice PayrollQuoted upfrontMonthlyLarger teams with associates and hygienists, classification maintained.
Multi-Location GroupQuoted upfrontMonthlyConsolidated payroll across sites with consistent treatment.
Year-End T4 / T4A FilingIncludedAnnualAll slips and summaries filed by the February deadline.

All fees include HST, so the number quoted is the number you pay. Payment is by Interac e-Transfer to info@gondaliyacpa.ca with auto-deposit enabled and the security question set to Not Applicable. Please use our pricing calculator for an exact figure.

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Dental Office Payroll: Cities We Serve

Licensed CPA payroll for dental practices across Ontario, delivered virtually.

TorontoMississaugaBramptonScarboroughEtobicokeNorth YorkMarkhamVaughanOttawaAll of Ontario

Frequently Asked Questions

Do I run payroll for my associate dentists?
It depends entirely on classification. A true independent-contractor associate, who sets their own hours, uses their own tools, works at multiple clinics and is paid a percentage of their own billings, is paid gross and issued a T4A, with no CPP, EI or tax withheld at the practice. An associate who works set hours under the owner's direction is an employee and goes on payroll with full source deductions.
How do I know if my hygienist is an employee or a contractor?
The CRA applies the same control, tools, chance of profit and integration test it uses for associates. A hygienist on a set schedule, using clinic equipment, following the owner's protocols and unable to subcontract is an employee. One who maintains their own clients, uses their own instruments, works at several clinics and invoices the practice may be a contractor. Most hygienists are employees.
Why does worker classification matter so much for a dental office?
Because getting it wrong is expensive. If the CRA reclassifies a contractor as an employee, the practice becomes liable for the unremitted CPP and EI, both the employee and employer shares, plus penalties and interest, often across several years. Dental offices are audited on this specifically. We assess each worker before setting up payroll.
What is a Personal Services Business risk for a dental associate?
When an incorporated associate's relationship with the practice looks like employment in substance, the CRA can treat the associate's corporation as a Personal Services Business, which loses the small business deduction and most expense deductions. The contractor relationship must be genuine and documented. This is a real dental-sector risk we screen for.
Which of my dental staff are always employees?
Dental assistants, chairside staff, receptionists, treatment coordinators and office managers are always employees. They work regular hours under direct supervision using clinic equipment. They go on payroll with income tax, CPP and EI withheld and a T4 at year end. There is no contractor argument for these roles.
What is the ESA overtime threshold for my dental staff?
In Ontario the overtime threshold is 44 hours in a week, after which hourly staff are paid time and a half. Salaried front-office staff still have overtime entitlements calculated on their regular rate. We build the correct thresholds into every pay run so your practice stays ESA-compliant.
How does vacation pay work for dental employees?
In Ontario vacation pay and vacation time are two separate obligations. Paying out vacation pay does not remove your duty to schedule vacation time. Vacation pay is 4% of gross for employees with less than five years of service, rising to 6% after five years. We calculate and track both correctly.
How does public holiday pay work in a dental office?
Public holiday pay is calculated under a specific ESA formula based on the employee's earnings in the four weeks before the holiday, not simply a normal day's pay. Getting it wrong is a common ESA breach in practices. We apply the correct formula for every eligible employee on each of Ontario's public holidays.
When are my dental office payroll remittances due to the CRA?
Most practices are monthly remitters, so the income tax, CPP and EI withheld in a month, plus the employer shares, are due by the 15th of the following month. Interest compounds daily from the due date with no grace period. We track your remittance schedule and submit on time as part of each run.
What happens if I miss a payroll remittance deadline?
The CRA charges a penalty on late remittances, starting at 3% and rising to 10% for remittances more than seven days late, plus daily compounding interest. Repeated lateness escalates the penalty. We remit on your behalf as part of each pay run so the deadline is never missed.
Do I need to withhold CPP and EI on an associate paid through their corporation?
No, provided the arrangement is a genuine contractor relationship. You pay the associate's Dental Professional Corporation gross and issue no T4. But if the substance is employment, the CRA can reclassify it, so the relationship must be properly documented. We review the arrangement before deciding how to pay.
Can I pay some staff on payroll and some as contractors?
Yes, and most dental offices do. Assistants, reception and office staff are on payroll as employees, while a genuinely independent associate or per-diem hygienist may be a contractor. The mix is normal. What matters is that each classification is correct on its own facts, which we confirm.
How are per-diem hygienists handled?
With care, because CRA scrutiny is high. A per-diem hygienist who covers vacation days, maintains their own client base elsewhere, is free to decline days and uses their own instruments may be a contractor. But the arrangement must be confirmed annually, because a per-diem who becomes a regular fixture drifts into employee status.
Do I have to run payroll for myself as the owner dentist?
If you take a salary from your Dental Professional Corporation, yes, that salary runs through payroll with source deductions and a T4. Many dentists take a mix of salary and dividends, and the split affects RRSP room and tax. We set up owner payroll and coordinate it with your compensation strategy.
What is the RECE wage enhancement equivalent for dental offices?
There is no dental equivalent. That grant is specific to licensed childcare. Dental payroll is driven instead by correct worker classification, ESA compliance and accurate source deductions. The complexity in a dental office is who is an employee versus a contractor, not government wage top-ups.
Do you handle T4 and T4A slips for my dental office?
Yes. We prepare and file the year-end T4 slips for your employees and T4A slips for genuine contractors, with the T4 Summary and T4A Summary to the CRA, by the February deadline. Getting the employee-versus-contractor split right on the slips is part of what protects you in an audit.
Can you handle a dental office with multiple locations?
Yes. Multi-location and multi-dentist practices, including partnership-of-corporations structures, are well within scope. We consolidate payroll across locations, keep classification consistent, and handle the added complexity of associates who work across sites. See our payroll services.
What payroll software do you use for dental offices?
We run payroll on Wagepoint, which handles the deduction calculations at current CRA rates, tracks your remittance schedule and submits on your behalf, and syncs to QuickBooks Online or Xero. You get direct deposit, digital pay stubs and a clean audit trail without touching the calculations each cycle.
How much does dental office payroll cost?
We quote an exact flat monthly fee upfront based on your number of employees and pay frequency, with no hourly billing, and all fees include HST. There are no per-slip surprises at year end. Please use our pricing calculator for an exact figure.
Do you file WSIB and Employer Health Tax for dental offices?
Yes where they apply. Ontario EHT applies once your payroll exceeds the exemption threshold, and WSIB may apply depending on your coverage. We calculate and remit both alongside your regular payroll so nothing is missed. These are employer costs, separate from what is withheld from staff.
What if the CRA is already reviewing my worker classifications?
We can help. We review each arrangement, prepare the documentation supporting genuine contractor relationships, and represent you in the review. Where a worker should have been an employee, we quantify the exposure and advise on correcting it. See our CRA audit resolution services.
Do you handle benefits and health spending accounts?
Yes. Where your practice provides health and dental benefits or a Health Spending Account to employees, we account for the taxable and non-taxable portions correctly on payroll and the T4. Employer-provided benefits for staff are generally deductible to the practice.
Can you catch up a dental office that is behind on payroll?
Yes. If remittances are late, slips are unfiled, or classification was handled incorrectly in prior years, we bring the payroll current, file the outstanding slips and remittances, and where relief is available, pursue it. See our CRA support.
How do bonuses and commissions get taxed in a dental office?
Bonuses and production-based pay to employees are subject to income tax, CPP and EI like regular wages, but the withholding is calculated using the CRA's bonus method rather than the regular tables. We apply the correct method so the deductions are accurate and the employee is not over or under withheld.
Do I withhold tax on a signing bonus for a new associate?
If the associate is an employee, yes, a signing bonus is employment income with full source deductions. If the associate is a genuine contractor paid through their corporation, no withholding applies but the payment is their business income. The answer follows the classification, which we confirm first.
How quickly can you set up payroll for my dental practice?
Once we have your employee details, business number and payroll account, setup typically takes a few business days. If you do not yet have a CRA payroll account, we open one for you. We aim to have you ready for your next pay period.
Do you serve dental offices outside Toronto?
Yes. We are a licensed Ontario CPA firm serving dental practices across Ontario and Canada, virtually. Payroll is delivered entirely through our secure portal, so your location is never a constraint.
Is my dental office too small for professional payroll?
No. Even a single-chair practice with two or three staff benefits, because the classification and ESA rules apply regardless of size, and the penalties for getting them wrong do not scale down. Small practices are often where classification errors go unnoticed until an audit.
Do you coordinate payroll with my dental practice bookkeeping and tax?
Yes, and that is the advantage of one CPA firm. Your payroll, bookkeeping and T2 all connect, so the wage expense, source deductions and owner compensation flow through consistently. See our CPA services for dentists.
How do I get started with dental office payroll?
Please book a free consultation and tell us how many staff you have, who your associates and hygienists are, and how they are currently paid. We confirm each classification, quote a flat monthly fee, and set up compliant payroll. Book Free Consultation →

Meet Your Dental Payroll Specialists

Sharad Gondaliya, CPA

Sharad Gondaliya, CPA

Founder & Managing Director
Gondaliya CPA Professional Corporation

Sharad advises dental practices on worker classification, Dental Professional Corporation structuring and payroll compliance.

Vandana Goel, CPA

Vandana Goel, CPA

Senior Accountant
Gondaliya CPA Professional Corporation

Vandana runs payroll processing, source deductions, remittances and year-end T4 and T4A filing for dental clients.

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Dental Payroll Turns on Classification. Let a CPA Get It Right.

Gondaliya CPA confirms every worker's status, runs compliant payroll on Wagepoint, remits on time and files clean T4s and T4As, wherever your practice is. Flat monthly fee. All fees include HST.

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1300+ Five-Star Reviews
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