Payroll Services in Ottawa
What is Payroll and why is it important?
Payroll is a responsibility in which a business pays its employees. It can be distributed in the form of a cheque or direct deposit. It also includes keeping a record of those payments and paying taxes on behalf of the employees.
Payroll is one of the most important aspects of a business. It affects employee morale and reflects a business’s financial stability and reputation. Because employees rely on their pay cheques, errors or untimely payment can create a lack of trust. But when pay cheques are accurate and delivered in a timely manner, employees are more engaged and motivated.
In order to pay your employees properly in Canada, you must comply with the requirements of the Canada Revenue Agency (CRA) and send the correct payroll deductions. Making Payroll Easier for Ottawa Businesses
Managing payroll correctly is essential for Ottawa businesses – from CRA deductions and employee records to payroll remittances and T4 filings.
How to do Payroll
5 steps to running payroll in Canada
- Create a Payroll Account
In order to send your payroll deductions to the CRA, you’ll need a CRA payroll deductions program account. If you already have a business number (BN) and have a pre-existing CRA program account, you can easily add a payroll deductions account to it.
If you don’t have a BN, you can get one by contacting the CRA. - Collect and Record Information from Employees
During the hiring process, be sure to examine new employees’ SIN cards and keep it for your records. They also need to fill out the appropriate federal and provincial Form TD1 to determine how much tax is to be deducted from their income. - Make the Appropriate Payroll Deductions
Before making deductions, ensure you’ve added any eligible taxable benefits to your employees’ pay. For example, if you provide an employee a company car, parking, lodging, etc. in addition to their wages, it could be considered a taxable benefit. - Remit Deductions to the CRA
Once you’ve made the appropriate payroll deductions, you will have to remit them to the CRA. You can remit electronically or use paper remittance vouchers and receive the statements of account by mail. If you choose to remit electronically, you can view statements and transactions by using your online business account on the Government of Canada website. - Complete T4 Slips and Information Returns
As an employer, you’ll need to complete a T4 slip for each employee and complete the T4 summary form every year. T4 slips can be filled out electronically using CRA’s T4 web application or through an online PDF. You must file the T4 information return and give your employees the T4 slips on or before the last day of February following the calendar year.
Your business records, including records related to your payroll must be kept at your place of business or at your residence in Canada unless permission has been given from the CRA to keep them elsewhere.
Helping Ottawa Businesses Simplify Payroll
Payroll can be time-consuming and mistakes can be costly. From employee payments to CRA remittances, Ottawa small businesses need payroll to be accurate and on time.
At A-Accounting, we provide reliable payroll support using modern cloud technologies – helping you stay compliant, save time and focus on running your business.