Question 1

What is payroll?

Accepted Answer

Payroll is the process of calculating employee earnings, deducting taxes and other statutory deductions, and paying employees accurately and on time.

Question 2

What payroll deductions are required in Canada?

Accepted Answer

Canadian employers are generally required to deduct: Federal and provincial income tax Canada Pension Plan (CPP) contributions Employment Insurance (EI) premiums

Question 3

How often can employees be paid?

Accepted Answer

Employees can be paid: Weekly Bi-weekly Semi-monthly Monthly The pay frequency depends on the employer's payroll policy and provincial employment standards.

Question 4

What is a payroll account number?

Accepted Answer

A payroll account number is a CRA program account used to report employee earnings and remit payroll deductions. It usually ends with "RP0001".

Question 5

What is CPP?

Accepted Answer

The Canada Pension Plan (CPP) is a government retirement benefit program funded by contributions from employees and employers.

Question 6

What is CPP2?

Accepted Answer

CPP2 is the second additional CPP contribution introduced as part of CPP enhancement. Higher-income employees may be required to contribute CPP2 after reaching the first earnings ceiling.

Question 7

What is EI?

Accepted Answer

Employment Insurance (EI) provides temporary income support to eligible workers who lose their job or cannot work due to certain circumstances.

Question 8

Who pays CPP and EI?

Accepted Answer

Both employers and employees contribute to CPP. Employees contribute to EI, and employers contribute a larger matching amount.

Question 9

How do I calculate CPP and EI deductions?

Accepted Answer

CPP and EI deductions are calculated using CRA rates, annual maximums, exemptions, and the employee's earnings. The CRA provides official calculation tables and calculators.

Question 10

What happens if CPP or EI is over-deducted?

Accepted Answer

Over-deducted amounts can often be adjusted during the year or refunded when the employee files their personal income tax return.

Question 11

How is income tax calculated?

Accepted Answer

Income tax is calculated using: Employee income Province of employment TD1 claim amounts CRA payroll deduction tables

Question 12

What is a TD1 form?

Accepted Answer

A TD1 form tells the employer which personal tax credits an employee is claiming for payroll tax calculations.

Question 13

Do employees need to complete a TD1 form?

Accepted Answer

Yes. New employees should complete federal and provincial TD1 forms when they start employment.

Question 14

What is a T4 slip?

Accepted Answer

A T4 slip reports employment income and payroll deductions for an employee during the calendar year.

Question 15

When are T4 slips due?

Accepted Answer

Employers must provide T4 slips to employees and file them with the CRA by the last day of February following the tax year.

Question 16

What is a T4 Summary?

Accepted Answer

A T4 Summary reports the total employment income and deductions for all employees combined.

Question 17

What is a T4A slip?

Accepted Answer

A T4A slip reports payments such as commissions, pensions, self-employed fees, and other income not reported on a T4.

Question 18

What is a payroll remittance?

Accepted Answer

A payroll remittance is the payment sent to the CRA for: Income tax deducted CPP contributions EI premiums

Question 19

What is a PD7A?

Accepted Answer

PD7A is a CRA statement showing payroll remittance requirements, account balances, and payment information.

Question 20

How often do payroll remittances need to be submitted?

Accepted Answer

Depending on your CRA remitter type, remittances may be: Monthly Quarterly Accelerated Annual

Question 21

What happens if I miss a payroll remittance?

Accepted Answer

The CRA may charge penalties and interest for late payroll remittances.

Question 22

What is an ROE?

Accepted Answer

A Record of Employment (ROE) is issued when an employee experiences an interruption of earnings.

Question 23

When must an ROE be issued?

Accepted Answer

An ROE must generally be issued when an employee stops working and experiences an interruption of earnings.

Question 24

Can an ROE be filed electronically?

Accepted Answer

Yes. Employers can submit ROEs electronically through Service Canada.

Question 25

How is vacation pay calculated?

Accepted Answer

For most employees: 4% of gross wages after 1 year of employment 6% after 5 years of employment Higher percentages may apply depending on provincial legislation

Question 26

What is statutory holiday pay?

Accepted Answer

Statutory holiday pay is compensation employees may receive for recognized public holidays if eligibility requirements are met.

Question 27

Is holiday pay different in each province?

Accepted Answer

Yes. Statutory holiday rules vary by province and territory.

Question 28

What information is required for a new employee?

Accepted Answer

Typically: Full legal name Social Insurance Number (SIN) Address TD1 forms Banking information for direct deposit

Question 29

Can payroll be processed for salaried employees?

Accepted Answer

Yes. Payroll can be processed for both hourly and salaried employees.

Question 30

Can payroll be processed for hourly employees?

Accepted Answer

Yes. Hours worked, overtime, vacation pay, and deductions can all be calculated automatically.

Question 31

How is overtime calculated?

Accepted Answer

Overtime is paid at 1.5× the regular hourly rate (some provinces also add a 2× double-time tier). Thresholds by province: ON 44 hrs/week · QC 40 · BC 8 hrs/day or 40/week, 2× after 12 hrs/day · AB 8 hrs/day or 44/week (whichever is greater) · SK 8/day or 40/week · MB 40/week · NB 44/week (1.5× minimum wage) · NS 48/week · PE 48/week · NL 40/week (1.5× minimum wage) · YT/NT/NU 8/day or 40/week.

Question 32

How do I add overtime to a pay run?

Accepted Answer

Open Pay runs → New pay run (or an existing draft) → pick the employee's row → enter the number of overtime hours in the Overtime hours field (and Double-time hours if the province supports it, e.g. BC after 12 hrs/day). The system multiplies those hours by the employee's hourly rate × 1.5 (or × 2 for double time) and adds the amount to gross pay, then recalculates CPP, EI and income tax automatically. Finalize the pay run to lock it and generate pay stubs — overtime is shown as its own line on the stub.

Question 33

What is CanadianPayroll.ca?

Accepted Answer

CanadianPayroll.ca is an online Canadian payroll platform designed to help businesses calculate payroll deductions, generate pay stubs, manage employees, and prepare payroll reports.

Question 34

Can CanadianPayroll.ca generate pay stubs?

Accepted Answer

Yes. Professional employee pay stubs can be generated and printed.

Question 35

Can CanadianPayroll.ca calculate CPP, CPP2, EI, and income tax?

Accepted Answer

Yes. Payroll calculations are based on current CRA payroll deduction rules.

Question 36

Can CanadianPayroll.ca generate T4 slips?

Accepted Answer

Yes. T4 slips and year-end payroll reports can be generated.

Question 37

Is CanadianPayroll.ca suitable for small businesses?

Accepted Answer

Yes. It is designed for Canadian small businesses, accountants, bookkeepers, and employers.

Question 38

Is CanadianPayroll.ca cloud-based?

Accepted Answer

Yes. Payroll data can be accessed securely online from anywhere.

Question 39

How much does CanadianPayroll.ca cost?

Accepted Answer

CanadianPayroll.ca is $50 CAD per employee per year.

Question 40

Is there a minimum subscription?

Accepted Answer

Yes. The minimum plan is $250 CAD per year, which covers up to 5 employees.

Question 41

What does each plan size cost?

Accepted Answer

Employees Annual Cost (CAD) 1–5 $250 10 $500 15 $750 20 $1,000 25 $1,250

Question 42

Are there any setup fees?

Accepted Answer

No. There are no setup fees or hidden charges.

Question 43

What's included in every subscription?

Accepted Answer

Payroll calculations CPP, CPP2, EI, and tax calculations Employee management Pay stub generation Vacation pay calculations Statutory holiday calculations Payroll reporting

Question 44

Can I add more employees later?

Accepted Answer

Yes. You can add employees at any time. Additional employees are billed at $50 CAD per employee annually.

Question 45

Is there a monthly plan?

Accepted Answer

Currently, CanadianPayroll.ca offers annual subscriptions for the best value and predictable pricing.

Question 46

Do accountants and bookkeepers receive special pricing?

Accepted Answer

Please contact our sales team for accountant and multi-client pricing options.

Question 47

Why is CanadianPayroll.ca more affordable than traditional payroll services?

Accepted Answer

CanadianPayroll.ca is designed specifically for Canadian small businesses, providing essential payroll tools without expensive monthly service fees.

Frequently asked questions.

General Payroll

CPP & EI

Income Tax

T4 & Year-End

CRA Remittances

Record of Employment (ROE)

Vacation & Holiday Pay

Employees

About CanadianPayroll.ca

Pricing & Subscription

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