Payroll

On-line banking
Set up the account as you would any other bill payment; look for “payroll remittance” or “payroll source deductions” or similar.

Note that business payments must be made from a business account.

Via CRA’s “My Payment” Service
This service allows payments from online bank accounts. See http://www.cra-arc.gc.ca/esrvc-srvce/tx/mypymnt/menu-eng.html

Note that business payments and must be made from a business account. If you bank with BMO or CIBC, you cannot use this service, but should be able to set up your payment via on-line banking.

  • Select “Start my Payment”
  • Choose “Payroll Source Deductions” (under “Businesses)
  • Choose the appropriate payment type (click the question icon for more details about each)
  • For “Account Number”, enter your 9 digit business number, followed by the 6 digit extension RP0001

By mail
Make your cheque payable to “Receiver General of Canada”

Send cheques to:
Canada Revenue Agency
875 Heron Road
Ottawa ON K1A 1B1

Attach a remittance voucher, or else clearly mark on the cheque:

  • your legal business name,
  • your 9 digit business number, followed by a 6 digit extension RP0001
  • the period it applies to (year or quarter)

At a CRA Office
In Toronto, payments can be made at 1 Front Street West. An external drop box is available and all payments are time and date stamped when received.

For more information, see: https://www.canada.ca/en/revenue-agency/services/make-a-payment-canada-revenue-agency.html

If you are incorporated, we recommend that you establish a consistent salary, pay yourself regularly (weekly, bi-weekly, or monthly) and send in payroll taxes each month.

Please call or email our office (t-slips@brianborts.com) for help in calculating your remittance payments.

Alternatively, you can use a payroll calculator, such as:

Reminder that if you are paying yourself from your own corporation, you will be EI exempt unless you have “opted in.”

We strongly encourage regular payroll remittances to CRA.

If paying monthly, you must remit payment for the current month’s salary by the 15th day of the following month (e.g. your payment for December salary would be due to CRA by January 15th.)

If you are eligible for quarterly remitting, CRA must receive payment by the 15 th day of the month immediately following the end of each quarter. The quarters are:

  • January to March (payment due by April 15th)
  • April to June (payment due by July 15th)
  • July to September (payment due by October 15th)
  • October to December(payment due by January 15th)
If you skip one or more salary payments, you do not have to make source deductions for that period.

***However, you should inform CRA that no salaries are being paid; otherwise, CRA will expect a remittance and may fine you for skipping payment.

You can update your information via CRA’s My Business Account service, by mail (using a remittance voucher sent to you by CRA), or by telephone (1 800 959 5525). Our office can also update your information, upon request.

You may be calculating your pay records based on withdrawals from your corporate bank account. However, these withdrawals represent your net pay (aka pay after payroll deductions).

Since the T4 must show your gross pay (income before tax and CPP deductions), a calculation is performed to arrive at the gross pay and deductions.

In certain cases, taxable benefits may also be added to your gross pay to arrive at the T4 amount.

The remittances you make to your RP (payroll) account may include:

  • Income tax withheld
  • CPP – employer portion
  • CPP – employee portion
  • EI – employer portion
  • EI – employee portion

However, the T4 slip does NOT show

  • Employer CPP paid (equals the employee amount)
  • Employer EI paid (equals 1.4 times the employee amount)

For example: X Corp has paid $10,000 in payroll tax.
The T4 shows

  • Box 16 (income taxes withheld) – $4911.40
  • Box 22 (employee CPP) – $2544.30

TOTAL: 7455.70
The remaining $2544.30 was the employer CPP portion, which was remitted to CRA.

If you hire a caregiver, baby-sitter, or domestic worker, you are considered to be the employer of that person. You are considered to be an employer when you:

  • hire a person,
  • establish regular working hours, and
  • assign and supervise the tasks performed.

As an employer you will have to open a payroll account with CRA. This can be done by calling CRA at 1-800-959-5525 and requesting a business number with a payroll account. CRA will assign you a business number over the phone and send you a confirmation letter.

You can also register on line at http://www.cra-arc.gc.ca/tx/bsnss/tpcs/bn-ne/bro-ide/rgstr-eng.html.

Once you have a business number, you must calculate your employee’s deductions (tax, CPP, and EI) and periodically remit them to the government. You can use an on-line salary calculator such as the one offered by Payment Evolution  or CRA.

After the end of the calendar year you must prepare a T4 slip for your employee and send a T4 summary to the government.

Please note that our office does provide T4 preparation services, including calculating deductions, and remitting payroll taxes to the government.