Payroll

Employer’s responsibilities

The taxman has an interest

Visit their website

THE PAYROLL STEPS

1. Determine your status

• Are you an employer, trustee or payer?

1. Determine your status

• Are you an employer? , trustee or payer– contract of service – In all situations, the written contract (if applicable)

and working conditions must be examined to determine if an employer-employee relationship exists.

– RC4110 (Employee or Self-Employed)

2. Open a payroll account

A payroll account is an account number assigned to an employer to identify themselves when dealing with the Canada Revenue Agency. • 15-digit payroll account number– the 9-digit BN;– 2 letters for the type of account

(For payroll the letters are "RP"); and– 4 numbers for the specific account reference

Obtaining a BIN

• By phone• By internet• By mail

When?

You have to register for a payroll account before the first remittance due date.

Your first remittance due date is the 15th day of the month following the month in which you began withholding deductions from your employee's pay.

A.

B.

C.

D.

E.

Your new employee started work on June 1st. When must you register as an employer?

By December 31st

As soon as you hired the employee

By June 30th

No later than June 15th

Before July 15th

A.

B.

C.

D.

E.

Your new employee started work on June 1st. When must you register as an employer?

By December 31st

As soon as you hired the employee

By June 30th

No later than June 15th

Before July 15th

Remittance dates

Remittance due dates are always based on when an employee is paid for his or her services (pay day) rather than the pay period for which the services are rendered.

New employers are considered regular remitters.

Regular Remitter

The remittance due date is the 15th day of the month following.

You hire an employee on March 10 and you pay him bi-weekly. The first pay is on March 24th.

When is the remittance due?

You hire an employee on March 10 and you pay him bi-weekly. The first pay is on March 24th.

When is the remittance due?

April 15th

The pay week starts on Monday and ends on Sunday. The cheques are issued the following Tuesday. When is the remittance due?

Monday – June 28Sunday – July 4Pay date - July 6th

August 15th

The pay week starts on Monday and ends on Sunday. The cheques are issued the following Tuesday. When is the remittance due?

Monday – June 28Sunday – July 4Pay date - July 6th

The pay week starts on Monday and ends on Sunday. The cheques are issued the following Monday. When is the remittance due? (The employee does not work on the weekend.)

Monday – May 26stSunday – June 1stPay date - June 2nd

July 15th

The pay week starts on Monday and ends on Sunday. The cheques are issued the following Monday. When is the remittance due? (The employee does not work on the weekend.)

Monday – May 26stSunday – June 1stPay date - June 2nd

The Payroll Steps

• Determine your status• Open a payroll account

3. Hire employees

• Obtain the SIN from each employee who is in pensionable or insurable employment.

• Under the Canada Pension Plan Regulations, if an employee doesn't have a SIN card, you must inform him or her within three days of when they start working for you how to get one.

3. Hire employees

• Have the employee(s) complete a TD1 • Individuals who have a new employer have to

complete the federal TD1 and, if more than the basic personal amount is claimed, the provincial or territorial TD1.

4. Calculate deductions

Statutory deductions• CPP• EI• Federal tax• Provincial tax

5. Remit deductions

6. File information returns

6. File information returns

• Monthly remittances [PD7A]• Annual filing– T4s– T4 summary

7. Keep records

• The hours worked by each employee; • The CPP contributions• EI premiums• Taxes • TD1• Letters of authority• All information slips and returns

How long must you keep these records?

How long must you keep these records?

6 years

Ministry of Labour

Ministry of labour has an interest too.

They require the following records be kept.

Ministry of Labour• Name, address and starting date of employment. • Date of birth if the employee is a student under 18.• The hours worked by the employee each day and week.• Written agreements to work excess hours or average overtime

pay. • Vacation time records. • Vacation pay records. • Information contained in an employee's wage statement. • All the documents relating to an employee's pregnancy,

parental, family medical, organ donor, personal emergency, declared emergency, or reservist leave.

Ministry of Labour• Name, address and starting date of employment. • Date of birth if the employee is a student under 18.• The hours worked by the employee each day and week.• Written agreements to work excess hours or average overtime

pay. • Vacation time records. • Vacation pay records. • Information contained in an employee's wage statement. • All the documents relating to an employee's pregnancy,

parental, family medical, organ donor, personal emergency, declared emergency, or reservist leave.

How long?

Ministry of Labour• Name, address and starting date of employment. • Date of birth if the employee is a student under 18.• The hours worked by the employee each day and week.• Written agreements to work excess hours or average overtime

pay. • Vacation time records. • Vacation pay records. • Information contained in an employee's wage statement. • All the documents relating to an employee's pregnancy,

parental, family medical, organ donor, personal emergency, declared emergency, or reservist leave.

3 Years

END