How does Canadian Payroll Service Work ?
Payroll in Canada involves managing employee compensation while ensuring compliance with federal and provincial regulations. Employers must calculate wages, withhold taxes and contributions, and remit payments to the Canada Revenue Agency (CRA) and other entities. Here’s how payroll works in Canada step by step:
- Setting Up Employee Information
- Calculating Gross Pay
- Mandatory Deductions
- Issuing Net Pay
- Remitting Taxes and Contributions
- Record Keeping and Year-End Reporting
What Are the Best Payroll Systems?
The best payroll systems simplify payroll processing, ensure compliance, and reduce the risk of errors. Depending on your business size and needs, here are some of the top payroll systems:
Gusto
- Ideal for small to mid-sized businesses, Gusto offers user-friendly payroll processing, tax filing, and benefits management.
- Features: Direct deposit, tax compliance, year-end reporting (W-2s, T4s), and easy integration with accounting software.
- Pricing: Starts at $40/month + $6 per employee.
QuickBooks Payroll
- Best for small businesses already using QuickBooks accounting software.
- Features: Automatic tax calculations, direct deposit, year-end tax reporting, and employee self-service portals.
- Pricing: Starts at $22.50/month + $4 per employee.
ADP
- A comprehensive payroll solution suitable for medium to large businesses with more complex needs.
- Features: Payroll, tax filing, HR tools, and scalability for growing businesses.
- Pricing: Custom pricing based on business size and needs.
Paychex Flex
- Great for small to large businesses needing both payroll and HR features.
- Features: Payroll processing, tax filing, employee benefits administration, time and attendance tracking.
- Pricing: Starts at $39/month + $5 per employee.
OnPay
- A cost-effective solution for small businesses and startups.
- Features: Unlimited payroll runs, direct deposit, tax filings, and employee benefits integration.
- Pricing: Starts at $36/month + $4 per employee.
Wave Payroll
- Ideal for small businesses on a budget, Wave offers a free accounting software with payroll add-ons.
- Features: Basic payroll features like direct deposit and tax filing.
- Pricing: Starts at $20/month + $6 per employee.
Xero Payroll
- Best for small businesses using Xero accounting software.
- Features: Payroll, automatic tax calculations, employee payslips, and integration with accounting tools.
- Pricing: Starts at $39/month + $6 per employee.
Rippling
- Best for businesses with remote teams or global employees.
- Features: Payroll, HR, benefits management, and global payroll for international teams.
- Pricing: Custom pricing based on company size.