Payroll records

If you deduct Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, or income tax from remuneration or other amounts you pay, you must keep records of:

• the hours worked by each employee; and
• the CPP contributions, EI premiums, or taxes that you withheld.

You also have to keep the following documents:

• Form TD1, Personal Tax Credits Return, which all employees have to complete;
• Form TP1015.3, Source Deductions Return, if your employees work in the province of Quebec. This form is available from Revenu Québec;
• Canada Revenue Agency letters of authority that let you reduce the tax deductions for certain employees for a specific year; and
• all information slips issued and all returns filed.

You must keep all these records so that we can verify or review them, on request.

Businesses that use service bureaus, payroll providers, or similar institutions to handle payroll functions are still responsible for keeping records for the time period specified, generally six years. Payroll records can be kept in either paper or electronic format. We recommend that you keep electronic copies of your records at your business location.

Forms and publications

• Form TD1, Personal Tax Credits Return
• Form TP1015.3, Source Deductions Return
• Guide RC4409, Keeping Records
• Information Circular IC05-1, Electronic Record Keeping
• Information Circular IC78-10, Books and Records Retention/Destruction
• T4001, Employers' Guide - Payroll Deductions and Remittances

Related topics

• Payroll
• Revenu Québec