Canada Payroll Services

At Bradford Jacobs, we navigate the administration of the Canadian payroll system for you. We do the work, so you do not have to.

Canada Payroll

At Bradford Jacobs, our Employer of Record (EOR) platform provides reliable solutions for companies wishing to establish their presence in the Canadian economy.

Canadian flag
Canadian flag

Dedicated to Offering You 24/7 Support

How We Can Help You

From the first steps of setting up operations to ensuring compliance with the local payroll laws and regulations, we offer dedicated Canada Payroll solutions that can be personalised to your requirements. We aim to make global expansion easy.

At Bradford Jacobs, we navigate the administration of the Canada payroll system for you, and we also make the returns and associated payments for income tax and social security contributions directly from our payroll system to the local tax authorities. We do the work, so you do not have to. When expanding into a new country, you may encounter some challenges regarding payroll.

The mysteries of Canadian and Québec taxation can be daunting but allow us to take the reins and answer any of your questions and concerns with our trusty guide on payroll for Canada.

  • Remote payroll – This option allows businesses to operate under a single payroll system, by adding employees in Canada to your parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.
  • Internal payroll – You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in Canada. However, this does require hiring dedicated HR staff who understand Canadian employment and compliance laws.
  • Canadas’ payroll processing company – If you are considering outsourcing, then working with a Canadian payroll company will help in processing your payroll – but not when it comes to compliance.
  • Canadas’ payroll outsourcing – However, there is another option available that solves both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in Canada. We take the administrative stress off your shoulders so you can focus on what you do best.

Companies expanding their operations into Canada open up a world of opportunity – but challenges come alongside the benefits. Payroll management is among those challenges, whether your company is considering moving employees abroad or hiring fresh staff in-country.

Employment laws, payroll regulations and income tax requirements vary between the federal government and the 10 provinces and three territories. Bradford Jacobs’ Employer of Record (EOR) payroll solutions will navigate around these potential pitfalls effectively and efficiently by putting into action our comprehensive knowledge of federal and provincial taxes and payroll regulations.

As part of our service, we file returns and associated payments for wages tax and social security contributions directly from our payroll system to the relevant authorities. Staying up to date with federal and provincial laws is a vital element of our payroll services. Our role in consulting with the Canada Revenue Agency includes:

  • Confirming the requirement to make payroll deductions. Any remuneration relating to employment requires registering for payroll.
  • Obtaining the employee’s Social Insurance Number (SIN) within three days of their starting work, and completing Form TD1 (Personal Tax Credits Return) within seven days of starting and before paying the employee.
  • Obtaining a Business Number (BN) from the federal government or a Québec Enterprise Number for those incorporating in that province.
  • Opening a payroll program account to obtain the payroll number needed to remit deductions and file returns. We register for the program account as soon as hiring begins.
  • Calculating deductions and contributions for Canadian Pension Plan (CPP), Employment Insurance (EI) and income tax.
  • Submitting payroll information returns, completing, and filing year-end summary of all employees’ pay and deductions and remitting deductions for CPP, EI and income tax. In most cases deductions are filed by the 15th of the month after employees are paid. Remuneration includes taxable benefits and allowances. Different rules may apply to Small and Medium Enterprises (SMEs).

Additional payroll support includes:

  • Negotiating any tax exemptions for skilled expats (where applicable).
  • Reconciling federal, and any provincial, territorial and local taxes to assess for refunds or extra payments.
  • Calculating employees’ monthly salary and sending their pay slips.
  • Researching for any available tax incentives.
  • Submitting employees’ and employers’ wage tax returns.
  • Creating and submitting your company’s annual accounts and year-end statements.
  • Creating payment schedules for salaries and any insurance contributions (if applicable).
  • Ensuring accurate personal income tax returns are filed for you and your employees, where required.

The above checklist highlights why the vast percentage of foreign companies expanding into Canada’s strictly regulated business environment hand their payroll to EOR providers such as Bradford Jacobs. By outsourcing payroll, your company complies with tax and employment regulations without risking sanctions or financial penalties for late or incomplete filing. You focus on your goals and expansion, free of any concerns over payroll.

Companies expanding into Canada must meet basic legal requirements with running payroll, in addition to complying with minimum wage, overtime pay and employee benefits which vary between federal government and provincial regulations.

  • All companies must be established as legal entities to process payroll, either under federal or provincial/territorial laws.
  • Federal incorporation allows a business to trade overseas and in any Canadian province or territory; provincial incorporation allows a company to trade overseas but only in the Canadian province or territory where they are incorporated.
  • Employers running their own payroll must check every employee’s Social Insurance Number (SIN) card within three days of starting work and ensure the employee completes Form TD1 for personal tax credits return. The TD1 governs the amount of tax withheld from employment or other income, such as a pension scheme.
  • Taxes must be remitted to federal or provincial authorities at the risk of severe penalties for failure to file on time.
  • Employers must also withhold contributions for Canada Pension Plan (CPP) and Employment Insurance (EI) premiums.

Contact Us

Join Our Newsletter

Stay up to date with latest service offerings while receiving tips and strategies for making your next remote hire.