Payroll is needed once your business has been incorporated or registered, and only when you have recruited staff. New business owners feel that they should apply for a payroll tax account if they plan to hire staff at some point. This isn't correct. Apply only if you have employed people to work for you.
When do I have to pay my payroll deductions?
Payroll deductions are typically filed with the Canada Revenue Agency (CRA) on the 15th of each month. With the CRA, you can submit both manually and electronically, and most financial institutions let you pay this tax via online banking.
How do I keep track of employee payroll?
Payroll and cost management are available in most accounting software. You can also utilize the CRA's website to compute payroll deductions and the amount owed using simple tools. Often, an individual's accountant or bookkeeper will keep these records on behalf of the business owner, and you'll simply pay the account each month.
When is it not necessary to have payroll?
If you have casual labor that is not a regular part-time or full-time employee, you may be able to pay the person by the hour or according to a contract without having to set up a payroll account for them. If you have any issues, the (Mention company name) is happy to help you with any questions you may have about employees or payments in general.
What about my own payroll as a business owner?
Although it is advisable to consult a tax professional, such as an accountant or bookkeeper, regarding your individual and company financial and legal positions, most business owners pay a percentage of their revenue through payroll. When the business owner reaches the age where CPP benefits are available, this offers CPP payments to him or her.
How can I set up payroll with the Canada Revenue Agency (CRA)?
This is an uncomplicated process that you can do yourself or have completed by a third party representing you and your business over the phone or online.
What does the employee need to do to set up the payroll account?
The following information is required:
the employee's legal name;
the employee's address;
the employee's date of birth;
the employee's Social Insurance number
he or she first started working for you. This normally happens within the first two weeks of employment.
VR Counting for Accuracy offers simple and straightforward forms of submission to take care of your business needs if you have not yet incorporated or registered your company.