A Little More to Know About Payroll

Christina Chong
We talk about some more important details you should know like when to issue a Record of Employment and where to find the right payroll calculator.

What are Payroll Remittances?

With each paycheque, employers withhold the suitable amount of Employment Insurance (EI), Canada Pension Plan (CPP), and income tax. Altogether, these are called payroll remittances and are generally payable either monthly or quarterly. If each payment is less than $3,000, then payments are due on the 15th after the end of the quarter. Otherwise, payments are made by the 15th after the month’s wages are paid.

Don’t forget: As an employer, you are responsible for paying your portion of CPP and EI. These will be included in your monthly or quarterly payroll remittances as well.

Where and when to file a Record of Employment (ROE)

Sadly, nothing is forever, and eventually, you might find yourself in a position where an employee is leaving. Regardless of the reason, Service Canada requires a filed ROE. This is a space to enter details about the employee’s work history with you, including insurable earnings and hours. As an employer, you’re the one who is responsible for filing it. Make sure you send the ROE within five calendar days of the employee leaving.

Tip: The single most important piece of information for an employee to sign up for EI is an ROE. Make sure you have sent it in before they start the process.

Keeping your workplace safe

In a perfect world, workplace injuries don’t exist but let’s be real, they happen. When they do, you’ll want your workplace covered.

It’s required that all employers have WorksafeBC coverage unless there is a specific exemption that applies to your situation. You should be covered if you are an owner of an incorporated company and are actively engaged in business. You might be asking the question: What if I have no employees or don’t pay myself a salary? We’ll keep it simple…you still need coverage.

Our suggestions on payroll processing services

We are nearing the end of everything you need to know about running payroll in BC. There’s just one more thing we need to cover that ties it all together.

By now, you might know how you want to run your payroll. You might kick back and hand it to a bookkeeper, be hands-on, or go somewhere in between. Here are some options to make the decision easier.

Maybe you want to DIY payroll and save some bucks. If so, CRA has a payroll calculator that is easy to use. However, make sure you set aside some time for this. You have to provide employees with a pay stub that documents the details of their pay and deductions. Sadly, the reports created through the payroll calculator do not qualify.

Quickbooks Online (QBO) offers a more advanced level of payroll tracking. QBO calculates your payroll while also tracking remittances and vacation pay. You can also up a direct deposit if you want your employees paid on time. The only grunt work you’ll need to do is calculate your own stat holiday and overtime pay as well as remembering to make your payroll remittances to the CRA. Quickbooks Online costs $3 per employee on top of the monthly $20 subscription.

If you’d like a little more time to relax in your day, Payworks is a full-service option. It will enter your payroll remittances and complete stat holiday calculations so you don’t have to. Usually, full-service providers charge per pay period instead of monthly. Payworks is currently at $24/pay period which ends up being about double the cost of QBO’s service. But let’s not forget, time is money, and if you have a lot of employees, saving your time on payroll is close to priceless.

Payroll can still be a bit tricky even with full-service options, but that’s why we are here to help. Feel free to contact our office and we can chat about all things payroll or answer any other questions you may have.

*These prices are based on the quote as of the writing of this article.
*We have put together these notes for general informational purposes. We do advise that you contact a professional to advise you on your particular situation.

Share this article

Related Posts

Subscribe to our newsletter

Most Popular

Follow us

Black Friday Sale On Now

Don't miss our biggest sale of the year! Unless your business potential - now 30% off our Fundamentals Course.