Employer Requirement

If you pay salaries or wages, bonuses, vacation pay, tips or provide taxable benefits to an employee you are considered an employer. There are a number of requirements from the CRA for employers, not limited to:

Opening and maintaining a payroll account - If you are an employer, you need to register and maintain a payroll account with the CRA.

Obtain employee’s social insurance – Every employee must provide their social insurance number in order to work in Canada.

Obtain a TD1 form from employee – A TD1 (federal and possibly provincial) form is used to help determine the amount of tax to be withheld from an employees remuneration.

Deduct Canadian Pension Plan Contributions, Employment Insurance and Income tax – As an employer you are require to deduct and remit the employees share of CPP, EI and income tax from remuneration before it is paid. These amounts must be held in trust and remitted to the receiver general.

Remit Employer share of CPP contributions and EI premiums – In addition to deducting and remitting the employee’s portion, the employer is also required to remit an employer’s portion or share of CPP contributions and EI premiums.

Report employee income and deductions – As an employer you are required to file an information return that reports the employee’s income and deductions on a T4 or T4A slip with the CRA on or before the last day of February of the following calendar year.

Complete and issue a Record of Employment - An ROE is required whenever an employee stops working and has an interruption of earnings.

Keep adequate records - Adequate records in relation to employment remuneration, benefits, employment history to support all of the preceding requirements must be maintained.

CRA Website - Employers' Guide - Payroll Deductions and Remittances