Learn how payroll services in Canada can help your small business stay compliant, pay employees accurately, and save time. A must-read guide for Canadian entrepreneurs.
Payroll Services in Canada: What Small Businesses Need to Know
Running payroll is a crucial but complex part of managing a small business in Canada. This blog explains what payroll services include and why outsourcing can be a smart choice.
Key Components of Payroll in Canada
- Gross Pay Calculation
Includes wages, bonuses, and overtime. - Statutory Deductions
You must deduct:- Income tax
- Canada Pension Plan (CPP)
- Employment Insurance (EI)
- Employer Contributions
Employers must contribute to both CPP and EI. - Pay Slips & Records
Businesses must issue pay stubs and maintain records for at least 6 years. - T4 and Year-End Filing
Issue T4 slips and submit a T4 summary to the CRA annually.
Why Use a Payroll Service?
- Accuracy: Avoid costly errors.
- Compliance: Stay updated with changing tax laws.
- Time-Saving: Focus on your business while experts manage payroll.
- Employee Satisfaction: Ensure timely and correct payments.
Payroll Frequency Options
- Weekly
- Bi-weekly
- Semi-monthly
- Monthly
Choosing a Payroll Provider
Look for:
- CRA compliance
- Direct deposit options
- Employee portals
- Real-time reporting
Conclusion
Payroll services help small businesses stay compliant, pay employees accurately, and save time. Whether you're managing 2 or 200 employees, professional payroll support is worth the investment.
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