Running payroll is one of the most important responsibilities for any small business owner. From registering a payroll account and collecting employee information to remitting payroll deductions and filing year-end forms, there are many moving pieces to keep track of.
Our Small Business Payroll Checklist helps Canadian employers stay organized throughout the year with guidance on payroll setup, payroll compliance, recordkeeping, remittances and year-end obligations.
Whether you're hiring your first employee or reviewing your existing payroll process, this checklist can help you build confidence and reduce risk.
Small Business Payroll Checklist for Canadian Employers
Initial Payroll Setup
- Register a CRA payroll account
- Register with Revenu Québec if required
- Collect TD1 forms
- Collect SIN information
- Set up direct deposit
- Establish payroll policies
Ongoing Payroll Management
- Process payroll on schedule
- Calculate CPP, EI and income tax deductions
- Track vacation pay
- Apply statutory holiday requirements
- File ROEs when required
Compliance and Recordkeeping
- Monitor employment standards changes
- Review contractor classifications
- Maintain payroll records
- Audit payroll calculations
Year-End Payroll Duties
- Verify remittances
- Prepare T4s
- File Relevé 1 forms
- Review payroll systems
- Confirm business support partners
How ADP can help small business payroll processing
ADP offers small business payroll processing services to meet your needs, with flexible and affordable options that can save you time and help you comply with regulations. Some of our products also include a suite of HR features.
ADP offers payroll services to meet your needs, with flexible and affordable options for any business. Some of our small business payroll offerings also include a suite of HR features.
FAQ
What should be included in a small business payroll checklist?
A small business payroll checklist should include payroll account registration, employee tax forms, payroll deductions, remittance deadlines, vacation pay tracking, payroll recordkeeping, year-end tax forms and payroll compliance requirements. In Canada, employers should also account for CRA and provincial payroll obligations.
How do I set up payroll for a small business in Canada?
To set up payroll in Canada, employers typically need to register a CRA payroll account, collect employee information including TD1 forms and SIN details, establish a payroll schedule, determine payroll policies and create a plan for payroll deductions and remittances.
What payroll records should employers keep in Canada?
Canadian employers should maintain payroll records, employee information, payroll calculations, tax deductions, remittance information and related employment records. Payroll records generally need to be retained for six years from the end of the relevant tax year.
What payroll deductions do employers need to remit?
Employers are generally responsible for calculating and remitting Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums and applicable income tax deductions according to CRA requirements and deadlines.
What payroll tasks should be completed at year-end?
Year-end payroll responsibilities may include reviewing remittances, preparing and distributing T4 slips, filing required tax forms, submitting Relevé 1 forms where applicable and reviewing payroll processes for the upcoming year.
This article offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services.
