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Payroll
Registration - Registering Employer Number
Submit
your Payroll registration online.
What is a payroll account?
A payroll account is an account number assigned to either an employer
or a payer of amounts related to employment to identify themselves
when dealing with the Canada Revenue Agency (CRA).
This 15-digit account number is also known as the business number
(BN). The BN is a unique federal government numbering system that
identifies your business and the various accounts you maintain.
Are
you an employer?
We generally consider you to be an employer if:
- You pay
salaries, wages (including advances), bonuses, vacation pay, or
tips to your employees; or
- You provide
certain taxable benefits or allowances, such as board and lodging,
to your employees
In these situations,
an employer-employee relationship or employment under a contract
of service may exist if you have the right to control and direct
the person or people who perform the services.
Although a written contract might indicate that an individual is
self-employed or working under a contract for services, CRA may
not consider the individual as such if there is evidence of an employer-employee
relationship.
In all situations, the written contract (if applicable) and working
conditions must be examined to determine if an employer-employee
relationship exists.
If you or a person working for you have any doubt about whether
an employer-employee relationship exists, you can request a ruling.
Are you an employer or a payer?
- If no, payroll
will not apply.
- If yes,
you have to follow the payroll requirements.
Opening
a payroll account
Once you have determined that you are an employer you will need
to open a payroll account so you can remit your deductions.
When do you have to open a payroll
account?
You have to register for a payroll account before the first remittance
due date. Your first remittance due date is the 15th day of the
month following the month in which you began withholding deductions
from your employee's pay.
Examples
You hire an employee on March 10 and you pay him bi-weekly. The
first pay is on the 24th, therefore your first remittance due date
would be April 15.
You hire an employee on March 24 and pay him on April 3. Your first
remittance due date would be May 15.
If you didn't open an account before hiring employees, you still
need to calculate deductions and remit them by the due date. If
you fail to deduct or remit on time, you may be assessed a penalty.
How to Register a Payroll Account
You have two options when registering for Payroll
Account:
Option # 1
You can always visit your local Canada Customs and Revenue
Agency office and complete the registration form. Please make sure
that you fully understand the questions on the registration form
and answer them correctly. It is quite difficult to change certain
information once it is recorded. (You may have to wait for up to
one year). Also, be prepared for delays due to the workload.
Option # 2
We can easily assist you with registration. You can visit our office
or submit your information via fax or e-mail. If you are wandering
why should you let us help you with registration, the answer is
simple.
- You do not
have to take any time from your busy schedule to do the registration.
- If you are
located in a small town, there is no need to travel, just order
by fax.
- We have
the expertise to complete the registration in the way that best
suits your needs.
- We work for
you, not the government.
- For a small
fee of $35.00 we will do all the necessary work for you.
- We can help
you with the next step - Payroll report preparation.
Submit your Payroll registration online.
As always,
it is up to you to decide to do the work the easy way or the hard
way. In any case, we are always available to answer your questions.
Feel free to contact us by e-mail or telephone, at the numbers listed
below.
Calculating
deductions
After you have determined that you are an employer and have opened
a payroll account, you have to calculate the CPP contributions,
EI premiums, and income tax deductions based on the amounts you
pay your employees. You also have to calculate your share. Hold
these amounts in trust for the Receiver General in a separate account
from your operating business account.
Remitting deductions
As an employer, you have to remit the CPP contributions, the EI
premiums, and income tax deducted from your employees' income, along
with your share of CPP contributions and EI premiums.
These deductions, along with your remittance form, must be received
by CRA on or before your remittance due dates. Due dates vary depending
on the type of remitter you are, but in most cases your payment
must be received on or before the 15th day of the following month.
For
quick and easy Payroll registration contact our office at the numbers
listed below. We also provide complete bookkeeping and Payroll
Reporting services.
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