The Ultimate Payroll Set-up Checklist:

Payroll checklist can assist you in planning and setting your business in Canada.

March 7, 2022

The process of payroll set-up can be a difficult task for you as an employer, like switching payroll systems or building a new one. Do you feel the pressure to stay compliant? Or do you have an idea of what important information you need to work through this process? If you are worried and won't be able to figure it out on your own, Yogi & Associates are here to provide their help to answer your questions and navigate the process. In addition, our professionals are here to give information about the payroll checklist.

FOR YOU

Register your business in Canada today

GET STARTED

Setting Up Payroll for Small Business in Canada:

You need to figure out how to set up and manage your payroll system as a small business owner. Payroll is a complicated procedure controlled by regulatory duties that affect you as a business and can result in penalties if mishandled. A payroll must include information on employees, their working hours, salaries, taxes, and all data of payments given to employees.

The Payroll Set-up Checklist:

We have divided the payroll checklist into two categories:

  1. The payroll checklist for business.
  2. The payroll checklist for employees.

1. The Payroll Checklist for Business:

  • Year to date payroll information of each employee.
  • Payment method for employees (weekly, Biweekly, Monthly)
  • Types of rewards, benefits (health and dental insurance), vacations, or sick leaves.
  • Tax information and remittance schedule.
  • Business number and CRA Payroll Account Number.
  • Address of the company

2. The Payroll Checklist for Employees:

  • Employee's full name
  • Date of birth
  • SIN
  • Home Address
  • Email Address
  • Employee's salaries, additions, deductions, and employee's contributions.
  • Bank deposit information
  • Hiring and retiring dates

Five Steps to Set Up Payroll System in Your Company:

To run a payroll process in your company can be intimidating, and the consequences of getting it wrong can be financially and legally costly. Following are the essential aspects you need to set your payroll system:

  1. Business Address
  2. Business Number and CRA Payroll Account
  3. Remittance Schedule
  4. Bank Account
  5. Setting up your employees

1. Business Address:

You need to make sure you add your business address correctly. You must include street number, state, name, region, postal code, and telephone number.

2. Business Number & CRA Payroll Account:

You will need a business number for setting up a payroll system in your company. You can register your business number online by email, fax, or phone. You can click Register BN/Payroll Account Number to know more about how can you register for a business number and CRA Payroll Account.

Your business number is also a part of the CRA payroll account number, which contains the following information:

  • A 9 digit BN is used to represent a company.
  • The CRA program account is defined by a two-letter program identifier code (RP for payroll)
  • A four-digit reference number that represents a specific CRA account.

3. Remittance Schedule:

The next step is the remittance schedule. First, you have to figure out which category of remittance schedule you want. If you want to learn about the types of remittances, click Remittance schedule. Your payment method is determined by the two-year average monthly withholding amount.

4. Bank Account:

The next step is giving correct information about your bank account. If you fail to provide accurate bank account details, it will be difficult to pay employees.

5. Setting up your Employees:

After adding all the correct information of your company, you need to give accurate details of your employees too which includes:

  • Employees first/last name
  • Birthdate
  • Home Address
  • SIN
  • Email ID
  • If the employee lives in a different state apart from where he works, then mention his province where he works.
  • Hiring date
  • Pay rate
  • Payment method is given to the employee
  • The tax amount is taken from the employee's salary.

Wrapping it up!

Setting up a payroll system can be a difficult task as it has a lot of challenging situations. To make this process run successfully, it is necessary to provide all the essential information required and ensure it is correct to avoid any financial penalties. If this whole process is complicated for you to handle, you don't have to worry as Yogi & Associates are for you with our team to assist you with your payroll process. We will make sure you fulfill all the requirements for the payroll checklist to run this system efficiently.

Rafia Khalil

Executive Journalist

Recommended for you

Accounting

A Guide to High-Interest Saving Account:

Business

Claiming Your Business Expenses:Essential Guidelines

Business

Company Cars: To Lease or To Buy?

Business

The Top 3 Tax-Deductible Business Expenses in Canada

Business Incorporation

What to do next after Incorporating Your Business?

Payroll

Different Periods Of Payroll Frequency: An Essential Guide

Payroll

What is Payroll And How do I Set Up my Payroll

Business

A Quick Primer to Creating A CRA My Business Account

Business

Understanding the Tax Deadlines In 2022

Cryptocurrency

The Essential Guide to Cryptocurrency: Personal Income

Cryptocurrency

A Legal Guide to Crypto-currency: Business Income

Business

3 types of Master Business License

Business

Here’s How to Register for Master Business License

Business

How to Choose a Business Name in Canada?

Business

How to Start Your Business in Canada?

Business

How to choose a Corporate Fiscal Year-end Date

Business

Incorporating Your Business In Canada: How and Why

Accounting

Listing the Penalties for Filing Late GST/HST:

Accounting

The Legal Guide: GST/HST Return

Business

How to start charging and collecting GST/HST

Business

GST Number: How to Register for GST Number

Accounting

Everything You Need to Know about Input Tax Credits:

Accounting

Step By Step Guide To Payroll Remittances: PD7A Forms

Business

A Legal Guide to Work Permit in Canada:

Accounting

Four Essential Components of Payroll in Canada

Accounting

The Ultimate Payroll Set-up Checklist:

Business

A Complete Guide to Understand the TD1 Forms

Business

Minimum Wage Requirements: A Simple Guide

Business

Everything You Need to Know About Canada Pension Plan

Business

Why Should You Remit the Payroll Deductions

Business

The Ultimate Guide to Employment Insurance

Business

A Step-by-Step Guide to T4 Forms

Business

Employees and Contractors: The Beginners Guide!

Accounting

Everything You Need To Know About ROE

Accounting

2022 Statutory Holiday Schedule of Payroll:

Accounting

Is NFT Taxable In Canada?

Business

Which Business Expenses Are Tax-Deductible In Canada

Business

How to Understand Different Retirement Accounts

Business

5 Simple Ways to Know About CRCB Support Program

Business

The Essential Guide to CRSB Support Program

Business

What Is A Canada Worker Lockdown Benefit Program?

Business

Everything You Need To Know About Work Sharing Program

Accounting

Why is it important to return GST/HST?

Accounting

Exemption for charging GST/HST

Business

When and Why do I have to acquire an HST/GST number

Business

How to Register for HST/GST Number

Business Operation

Effectively run your business at home

Business Operation

What are the tools you can use to grow your business

Business

5 Amazing Benefits Of Soleproprietorship

Business Incorporation

Federal Vs Ontario: Which Incorporation is Best for You

Business Planning

How to write a Recession Proof Business Plan

Accounting

How to get approved for a Business Loan fast and easy