Your responsibilities as an employer: Know the payroll steps
You may have a business where in you have employed some employees. However, you must realize that as an employer you have certain responsibilities which need to be fulfilled diligently. We at The Accounting and Tax provide payroll services along with other services like professional tax audit and accounting solutions to both individuals as well as companies.
The payroll Steps for the employer
As an employer, you need to follow some payroll steps for your employee:
- You need to determine your status as an employer, payer or trustee.
- As an employer, you need to open a payroll program account. The account contains 15 characters; this consists of the 9 digit business number (BN). This number is a unique federal government numbering system which identifies your business as well as the various accounts you maintain.
- As a corporate tax consultant in Toronto, we suggest that you must ensure to get the employee’s Social Insurance Number (SIN) while hiring and also need to obtain the Form TD1, Personal Tax Credits Return of your employees. As an employer, you are still responsible for calculating and withholding the payroll deductions even you are unable to get the employee’s SIN and TD1. So you need to take care of the same.
- You must calculate and withhold the Canada Pension Plan (CPP) contributions, employment insurance (EI) premiums as well as the income tax deductions. This is based on the amounts you pay to your employees.
- Along with the calculations and deductions of the CPP contributions, EI premiums you also need to ensure that the amounts calculated and deducted are remitted in time as well.
- As a professional tax advisor, we suggest you to ensure the right calculations, timely deductions, and timely remittance of the employment deductions but also file the information returns on the appropriate T4 or T4A slip.
- It is of vital importance that you keep the proper records of all information in regard to your employees.
In conclusion, we would once again like the reiterate the importance of your responsibilities as an employer. We hope that through the information provided in the blog you have got a fair understanding of your responsibilities as an employer. For corporate tax consultation, contact us. We also provide tax consultation service to Canadian citizens living in the US and vice versa, income tax solutions in Canada.
