These steps will help you understand your responsibilities and how payroll works. It is important to understand each step, to ensure you are not assessed penalties, interest, and other consequences.
As an employer, trustee, or payer, you will need to open a payroll account.
To find out what to do when hiring an employee, see Hiring an employee.
You have to calculate the CPP contributions, EI premiums, and income tax deductions based on the amounts you pay your employees. You also have to calculate your share of CPP and EI. For information, see Calculating deductions.
You have to remit the CPP contributions, the EI premiums, and income tax you deducted, along with your share of CPP contributions and EI premiums. For information, see Remitting payroll deductions.
You have to report the income and deductions on the appropriate information returns. For information, see Completing and filing information returns.
During all this process you have to keep proper records. To find out what to keep for how long and other information, see Keeping records.