How payroll works
You have to make deductions on amounts you pay if you are an employer, a trustee or a payer. After you have made the deductions, you have to remit these deductions, plus your share, to the CRA. You then report these amounts on the appropriate information return.
See Employer responsibilities - The payroll steps for a definition of the above terms, and to find out what to do for each step.
If you are operating in Quebec, you also have provincial requirements. See Revenu Québec.
- Employer responsibilities - The payroll steps
- Penalties, interest, and other consequences
- Opening a payroll program account
- Changing your business status
- Administration of the Canada Pension Plan and the Employment Insurance Act
- Life events for employees
- Tax deduction estimator (form TD1)
Access this online tool to estimate deductions
Forms and publications
- Form RC366, Direct Deposit Request for Businesses
- Guide RC4120, Employers' Guide - Filing the T4 Slip and Summary
- Guide RC4157, Deducting Income Tax on Pension and Other Income, and Filing the T4A Slip and Summary
- Guide T4001, Employers' Guide - Payroll Deductions and Remittances
- Guide T4130, Employers' Guide - Taxable Benefits and Allowances
- Video series: Payroll Information for a New Small Business | 1:06 min.
- Webinar: Payroll basics - How payroll works | 36:32 min.
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