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Crystal Books

 

 

 

Employee Payroll

 
 




It’s time for our business to hire employees. What should we do?


There are many decisions involved in setting up new employee payroll. Here are some of the major steps:

 

1.        Decide if you want to calculate payroll manually, opt for self-service payroll provider or sign up for a full-service provider. Besides differences in costs, the major difference will come down to how much you want be involved with ongoing payroll administration.

 

2.        Pick your payroll frequency. Two popular options are semi-monthly (twice per month), especially if your company has only salaried employees or bi-weekly (every two weeks), if you have hourly or commission employees.

 

3.        Setup CRA payroll account under your existing business account. Setup provincial workers' compensation board registration, unless your industry is exempt from registration.

 

4.        Hire employees.
 

 

 
 




 

Are there ongoing tasks to be performed?
 

Depending on whether you run payroll manually, or use self-service/full-service payroll provider, you may need to look after ongoing tasks, such as

 

1.        For newly hired employees, obtain their contact info, DOB, SIN, direct deposit banking info and TD1 Personal Tax Credit Return forms (federal and provincial).

 

2.        Issue employee pay via direct deposit or by manual/printed cheques.

 

3.        Remit monthly payroll withholdings to CRA.

 

4.        Remit monthly workers' insurance premiums to provincial workers' compensation board (if registered).

 

5.        Provide employees with a paystub with each pay.

 

6.        File ROE form (Record of Employment) for each terminated employee.

 

7.        Issue annual T4 forms to employees and T4 Summary to CRA.

 

 

 
 




What else should be considered?


Some of the other items that should be considered are:

 

1.        For employee wages, ensure it meets your provincial minimum wage standard.

 

2.        For vacation pay, decide if it is to be paid out with every paycheque or accrued, while meeting provincial minimum vacation standards.

 

3.        Ensure employees receive eligible pay for statutory holidays and pay premiums for stat holidays actually worked.

 

4.        Set out details for benefits such as paid/unpaid personal leave.

 

5.        Decide on deductions towards other employment benefits, such as life insurance, long-term disability, critical illness, heath & dental benefits, company profit sharing and retirement savings/investments.

 

 
 

 
 





I have more questions about Employee Payroll. What can I do?


Please contact your Crystal Books bookkeeper and we will assist you with any additional questions you may have.


What services does Crystal Books offer?
 

Crystal Books is a Canadian company offering a full range of bookkeeping services including transaction recording, HST/GST management and employee payroll. Unlike many other providers who use offshore bookkeepers, all of our work is done 100% in Canada. Please use the following link to schedule your free initial consultation with us to see how Crystal Books can benefit your business.

 
 

 

 

 



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