Small Business Payroll in Ontario: What You’re Actually Responsible For
The moment you hire your first employee (or pay yourself a salary), payroll becomes your responsibility — and the CRA takes it seriously. Here’s what’s involved.
Source deductions and remittances
Every pay run, you withhold income tax, CPP and EI from your employees, add the employer portions, and remit it to the CRA — usually monthly. Miss a remittance deadline and the penalties are steep and immediate.
Year-end: T4s and ROEs
By the end of February each year you file T4 slips and a summary. When someone leaves, you issue a Record of Employment (ROE). And in Ontario, most employers deal with WSIB premiums and reporting too.
DIY or outsource?
Payroll is doable yourself, but the deadlines and penalties make it a common place to get burned. We offer payroll as an add-on to monthly bookkeeping so your pay runs, remittances and T4s are handled and reconciled to your books.
FAQ
What are source deductions? Income tax, CPP and EI withheld from pay and remitted to the CRA with the employer portions.
When do I remit payroll to the CRA? Usually monthly by the 15th; larger employers remit more often.
When are T4s due? By the last day of February for the prior year.
Do I need WSIB? Most Ontario employers do — we handle the reconciliation and reporting.
