Employer responsibilities - The payroll steps

These steps will help you understand your responsibilities and how payroll works. It is important to understand each step, to ensure you are not assessed penalties, interest, and other consequences.

Step 1: Determining your status

You have to determine if you are an employer, trustee or payer.

Step 2: Opening a payroll account

As an employer, trustee, or payer, you will need to open a payroll account.

Step 3: Hiring employees

To find out what to do when hiring an employee, see Hiring an employee.

Step 4: Calculating deductions

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 of CPP and EI. For information, see Calculating deductions.

Step 5: Remitting deductions

You have to remit the CPP contributions, the EI premiums, and income tax you deducted, along with your share of CPP contributions and EI premiums. For information, see Remitting deductions.

Step 6: Completing and filing information returns

You have to report the income and deductions on the appropriate information returns. For information, see Completing and filing information returns.

Keeping records

During all this process you have to keep proper records. To find out what to keep for how long and other information, see Keeping records.

Employer Visits Program

We offer an on-site consultative service to provide any help you may need with payroll deductions. For information, call 1-800-959-5525.

Payroll seminars

We also offer free payroll seminars to help you understand your responsibilities. See events and seminars.