This article is for small business owners who pay salaries or wages.
You can download the CRA tax guide below:
https://solidtax.ca/wp-content/uploads/2022/09/t4001-21e-Payroll-Deduction.pdf
As a business owner, do I need to register for a payroll program account?
If you hire anyone as an employee and pay salaries, you need to register for a payroll program. If you already have a business number (BN), you only need to add a payroll program account to your existing BN.
Depending on the working relationship, your workers can be your employees or sub-contractors. You don’t need to pay payroll remittance for sub-contractors, but you may still need a payroll account to submit a T4A slip.
If you are a corporation owner, you can decide to pay yourself a dividend or salary. To pay yourself a salary, you need to open a payroll account.
What are my responsibilities after opening a payroll account?
You are responsible for deducting, remitting and reporting payroll deductions.
- Get your employee’s Social Insurance Number (SIN)
- Get a Form TD1, Personal Tax Credits Return completed by your employee. You can get it from the link below:
- Every time you pay salaries, you need to deduct CPP contributions, EI premiums, and income tax from remuneration.
- Remit these deductions along with your share of CPP contributions and EI premiums.
- Report the employee’s income and deductions on their T4 slips.
When is my payroll remittance due day?
If you are a new employer and this is your first time opening a payroll account, normally you will be considered a regular remitter. You have to make the remittance on or before the 15th of the month after the month you paid your employees. For example, if you pay your employee in January, you need to remit the payroll remittance on or before February 15th.
If you are an eligible new small business employer, you may have the option to remit your payroll deductions quarterly instead of monthly. To be eligible, you need to meet following conditions:
- Your monthly withholding amount, which is the total amount you will remit to the CRA, is less than $1,000.
- You have a prefect compliance history.
For quarterly remitters, the due dates are April 15th, July 15th, Oct 15th and January 15.
If you are not sure what is your required remittance period, you can always check it out on the CRA My Business Account website. If your remittance period has changed, the CRA will send you a notice by mail or through the CRA My Business Account.
How do I pay my payroll remittance?
Most financial institutions let you set up payments to be sent to the CRA on pre-set dates. Make sure you enter your payroll program account number correctly and the period the remittance covers.
You can also use CRA My Payment to make the payment directly to the CRA from your bank account. For more information on how to make the payment, see the link below:
https://www.canada.ca/en/revenue-agency/services/e-services/payment-save-time-pay-online.html
I didn’t pay any salary, do I still fill out the remittance form?
Yes, you still need to fill out the NIL remittance form by using the “provide a nil remittance” service through CRA My Business Account. You can close your payroll account if you don’t need it anymore.
