Submit your Payroll registration online.
What is a payroll account?
A payroll account is an account number assigned to either an employer
or a payer of amounts related to employment to identify themselves when
dealing with the Canada Revenue Agency (CRA).
This 15-digit account number is also known as the business number (BN).
The BN is a unique federal government numbering system that identifies
your business and the various accounts you maintain.
Are
you an employer?
We generally consider you to be an employer if:
- You pay salaries, wages (including advances), bonuses, vacation pay, or tips to your employees; or
- You provide certain taxable benefits or allowances, such as board and lodging, to your employees
In these situations,
an employer-employee relationship or employment under a contract of service
may exist if you have the right to control and direct the person or people
who perform the services.
Although a written contract might indicate that an individual is self-employed
or working under a contract for services, CRA may not consider the individual
as such if there is evidence of an employer-employee relationship.
In all situations, the written contract (if applicable) and working conditions
must be examined to determine if an employer-employee relationship exists.
If you’re not sure of your status, see What
you need to consider to determine a worker’s employment status.
If you or a person working for you have any doubt about whether an employer-employee
relationship exists, you can request a ruling.
Are you an employer or a payer?
- If no, payroll will not apply.
- If yes, you have to follow the payroll requirements.
Opening
a payroll account
Once you have determined that you are an employer you will need to open
a payroll account so you can remit your deductions.
When do you have to open a payroll
account?
You have to register for a payroll account before the first remittance
due date. Your first remittance due date is the 15th day of the month following
the month in which you began withholding deductions from your employee's
pay.
Examples
You hire an employee on March 10 and you pay him bi-weekly. The first pay
is on the 24th, therefore your first remittance due date would be April
15.
You hire an employee on March 24 and pay him on April 3. Your first remittance
due date would be May 15.
If you didn't open an account before hiring employees, you still need to
calculate deductions and remit them by the due date. If you fail to deduct
or remit on time, you may be assessed a penalty.
How to Register a Payroll Account
You have two options when registering for Payroll
Account:
Option # 1
You can always visit your local Canada Customs and
Revenue Agency office and complete the registration form. Please
make sure that you fully understand the questions on the registration
form and answer them correctly. It is quite difficult to change
certain information once it is recorded. (You may have to wait
for up to one year). Also, be prepared for delays due to the
workload.
Option # 2
We can easily assist you with registration. You can visit our office or
submit your information via fax or e-mail. If you are wondering why should
you let us help you with registration, the answer is simple.
- You do not have to take any time from your busy schedule to do the registration.
- If you are located in a small town, there is no need to travel, just order by fax.
- We have the expertise to complete the registration in the way that best suits your needs.
- We work for you, not the government.
- For a small fee of $39.95 we will do all the necessary work for you.
- We can help you with the next step - Payroll report preparation.
Submit
your Payroll registration online.
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As always, it is up to you to decide to do the work the easy way or the hard way. In any case, we are always available to answer your questions. Feel free to contact us by e-mail or telephone, at the numbers listed below.
Calculating
deductions
After you have determined that you are an employer and have opened a payroll
account, you have to calculate the CPP contributions, EI premiums, and
income tax deductions based on the amounts you pay your employees. You
also have to calculate your share. Hold these amounts in trust for the
Receiver General in a separate account from your operating business account.
Remitting deductions
As an employer, you have to remit the CPP contributions, the EI premiums,
and income tax deducted from your employees' income, along with your share
of CPP contributions and EI premiums.
These deductions, along with your remittance form, must be received by
CRA on or before your remittance due dates. Due dates vary depending on
the type of remitter you are, but in most cases your payment must be received
on or before the 15th day of the following month.
For quick and easy Payroll registration contact our office at the numbers listed below. We also provide complete bookkeeping and Payroll Reporting services.
