Hiring your first employee is a big milestone. But with growth comes responsibility especially when it comes to payroll. Whether you’re paying one person or managing a small team, payroll mistakes can cost your business in fines, reputation, and employee trust.
As a professional accountant and payroll specialist based in Ontario, Canada, I help growing businesses implement compliant and scalable payroll systems. Below, I share lesser-known but powerful payroll tips to help you stay on top of your obligations — and ahead of the curve.
💡 7 Payroll Tips for Growing Businesses
1. Register for a Payroll Account with the CRA (Early)
In Canada, you must register for a CRA payroll account before your first pay run. Avoid late fees by doing it early.
2. Choose the Right Pay Frequency
Be consistent with your pay schedule (weekly, biweekly, monthly). Frequent changes can cause confusion and compliance issues.
3. Set Up a Written Payroll Policy
Define how you handle overtime, vacation, holidays, and deductions. A written policy sets clear expectations as your team grows.
4. Use Cloud Payroll Software
Automate CPP, EI, tax calculations, and ROEs with tools like QuickBooks Payroll or Wagepoint. Stay compliant and efficient.
5. Track Time and Attendance Accurately
Use digital apps to log hours worked. This prevents under/overpayments and protects both employer and employee.
6. Remit Payroll Deductions On Time
Late payments to the CRA mean automatic penalties. Automate deductions or set strong reminders.
7. Prepare for Employee Benefits
As your team grows, you’ll offer benefits. Track them properly and include them in T4 slips to stay compliant.
❓ FAQ – Frequently Asked Questions
When do I need to set up a payroll account in Canada?
As soon as you plan to pay any employee (even one), you must register for a CRA payroll account before the first payment.
Can I run payroll manually?
Yes, but it’s risky. Manual payroll increases the chance of errors in tax deductions, calculations, or remittances. Software is safer and scalable.
Do I have to issue pay stubs?
Yes, in most provinces, including Ontario, you are legally required to issue a pay statement with every pay cycle.
How long should I keep payroll records?
The CRA requires you to keep payroll records for at least 6 years, including pay stubs, timesheets, and tax remittances.
What happens if I remit payroll taxes late?
You’ll face automatic penalties and interest. It can also trigger audits. Automation is the best way to avoid this.
Let’s Build a Payroll System That Grows With You
As your team expands, your payroll needs will evolve. I help small and growing businesses across Ontario and Canada set up reliable, CRA-compliant payroll systems so you can focus on what matters: building your team and your business.