Simplify Your Business Growth with
Online Payroll Services in Canada
Our dedicated team of payroll specialists in Canada take the guesswork out of the equation. From managing direct deposit to ensuring every pay stub is delivered on time, the goal is to keep your team happy and your business fully compliant with CRA payroll regulations.
Specialized Payroll Support for Every Type of Canadian Business
Payroll isn't a one-size-fits-all solution. From varying provincial rules to complex bonus structures, industry-specific expertise is provided to keep operations running smoothly.
Skilled Trades
Help manage regular payroll runs, source deductions, remittance schedules, and professional pay stubs without manual calculations.
Independent Contractors
Manage employee payroll alongside contractor payments, ensuring correct T4 and T4A reporting and clear documentation.
Growing Teams
Aupport multiple pay frequencies, overtime rules, vacation accruals, statutory holiday pay, and benefit deductions.
When the CRA reviews contractor relationships, payroll is often one of the first areas examined. Incorporated contractors and one-person corporations are subject to strict PSB rules, which can eliminate access to the small business deduction and push corporate tax rates from roughly 12.2% to as high as 38% federally. We understand the pain of being labeled an “incorporated employee” when you are trying to build a legitimate business.
Payroll records, payment methods, and reporting need to clearly reflect the true working relationship. Accurate documentation and consistent payroll reporting help identify PSB risk early and prevent unexpected tax liabilities.
Get Monthly Payroll Compliance Right
Don’t wait for a CRA assessment letter to discover payroll errors. Ongoing payroll services handle every pay period’s payroll calculation & processing, submit source deduction remittances on time, and maintain audit-ready records. Monthly compliance tracking shows exactly what’s been remitted, what’s owing, and when next payments are due. Staying current eliminates the risk of the CRA’s 10% late-remittance penalty and keeps employees confident in their pay accuracy.
How Online Payroll Services Actually Work
Free Consultation
TD1 forms, direct deposit details, salary information and benefits deductions get collected securely.
Accuracy Review
Gross-to-net employee pay is calculated, including CPP, EI, and federal/provincial income tax.
CRA Remittance
Source deduction remittances get submitted to CRA on schedule (Monthly or as needed).
Proactive Remittance & Year-End Filing
The CRA has zero tolerance for late source deductions—penalties start at 3% for being just one day late and quickly climb. Instead of reactive “damage control” in April, a proactive payroll cycle manages federal and provincial remittances automatically. This includes calculating vacation pay & benefits administration, statutory holiday pay, and taxable benefits like health premiums. By the time January hits, year-end T4 and T4A summaries are ready to file without the usual New Year stress.
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FAQs
Most frequent questions and answers
T4 slips report employment income with CPP/EI deductions for employees. T4A slips report other income (commissions, fees, contract payments) for contractors or self-employed individuals without source deductions.
Most Canadian businesses run payroll bi-weekly or semi-monthly, but frequency depends on industry and employee agreements.
The CRA is strict. A first-time late remittance usually triggers a 10% penalty, which can jump to 20% for repeated errors. We use automated tracking to ensure your payments are always sent by the 15th of the following month (or your specific due date).
The “enhanced” CPP contributions can be tricky. As of 2024 and 2025, there is a second earnings ceiling. Expert payroll services automatically track when an employee hits the first ceiling and switches to the lower 4% rate for the second tier, so you never over-remit.
CRA requires complete employee records, TD1 forms, time sheets, pay stubs, remittance confirmations, PD7A returns and T4/ROE copies for six years minimum. Missing records during audits result in reassessments and penalties.
Yes, but the pay must be “reasonable” for the work they actually perform. The CRA scrutinizes “income splitting” closely, so ensuring their T4 matches an actual job description is the best way to avoid a red flag.
The CRA looks at “control” and “tools.” If you treat a contractor like an employee but don’t deduct EI or CPP, you could be liable for both the employer and employee portions later. A review of these contracts is essential for staying compliant.
Ready to File Your Taxes Online? Serving All of Canada From Toronto to Vancouver, Calgary to Halifax
+1 647-243-2884
available from 10:30 – 22:30
40 Wynford Dr Suite 301, North York, ON M3C 1J5, Canada
Email info@instaccountant.com