Payroll Services Toronto

Payroll administration is a critical function for any business with employees. As a Toronto-based CPA firm, we provide payroll services to ensure your business remains compliant with Canada Revenue Agency (CRA) requirements while efficiently managing employee compensation.

About Our Payroll Processing Services

Every Canadian employer must operate a payroll program when they hire employees. This includes calculating appropriate deductions, remitting payments to the CRA, and providing accurate records to both employees and tax authorities. Our team of experienced payroll specialists takes the complexity out of payroll management, allowing you to focus on running your business.

Our Payroll Services Include:

  • Payroll registration with the CRA to obtain a Business Number and Payroll Program Account
  • Employee setup, including TD1 and TD1ON forms and proper classification
  • Regular payroll processing (weekly, bi-weekly, semi-monthly, monthly, or annually)
  • Calculation of statutory deductions, including CPP, EI, income tax, and net pay
  • Source deductions remittances provide you with the statement to remit payroll taxes to CRA
  • Record of Employment (ROE) preparation when employees leave and submit to Service Canada
  • T4 and T4A preparation and filing at year-end
  • WSIB return preparation and filing to WSIB quarterly and provide you with the premium calculations
  • Payroll tax planning to optimize both employer and employee tax positions

Compliance Requirements and Deadlines

Payroll Remittance Due Dates

  • Regular remitter: Due by the 15th of the month following the month you paid your employees
  • Quarterly remitter: Due by the 15th of the month following the end of each quarter (for eligible small employers)
  • Accelerated remitter (threshold 1): Due by the 25th of the same month and the 10th of the following month
  • Accelerated remitter (threshold 2): Due multiple times per month based on CRA schedules

Year-End Filing

  • T4 and T4A slips: Must be issued to employees and filed with the CRA by February 28th following the calendar year

Penalties for Non-Compliance

  • Late remittances: 3% penalty if 1-3 days late, 5% if 4-5 days late, 7% if 6-7 days late, 10% if more than 7 days late
  • Failure to deduct: 10% penalty on amounts that should have been deducted
  • Repeated failures: 20% penalty for repeated failures or gross negligence

Source: Canada Revenue Agency – Payroll

Why Choose Our Firm for Your Payroll Needs

✅Expert knowledge of Canadian payroll legislation and regulations

✅Accurate and Timely Processing prevents penalties and ensures employee satisfaction

✅Cost-effective solutions that typically save money compared to in-house processing

✅Reduction in errors that can lead to penalties and employee dissatisfaction

✅Ongoing support for payroll-related questions and concerns

✅Transparent Pricing: No hidden fees or surprise charges

Frequently Asked Questions

1. What information do I need to provide to set up payroll services?

You’ll need to provide your business details, Business Number, employee information including SINs and completed TD1 forms, pay schedules, and compensation details. We’ll guide you through the entire setup process.

2. How do I determine if someone is an employee or an independent contractor?

The CRA looks at several factors including control, ownership of tools, chance of profit/risk of loss, and integration. Misclassification can result in significant penalties. We can help assess your specific situation to ensure proper classification.

3. Are directors personally liable for unpaid payroll taxes?

Yes, directors can be held personally liable for unremitted payroll deductions and GST/HST if the corporation fails to remit.

4. Can I include contractors in my payroll?

No, independent contractors are not subject to payroll deductions but require T4A slips for amounts paid.

5. What records do I need to maintain for payroll?

Employers must keep payroll records for at least six years from the end of the tax year to which they relate. These include time sheets, pay statements, T4 information, and TD1 forms.

Ready to Streamline Your Payroll Process?

Contact our experienced team today to discuss your payroll needs and how we can help your business maintain compliance while saving valuable time and resources.

Email: info@maqcpa.ca
Phone: (416) 901-4126

References:
Canada Revenue Agency – Payroll
CRA Payroll Deductions and Contributions