Accurate Pay. Correct Deductions. Every Province. Every Pay Period.
Canadian payroll is not US payroll with a currency conversion.
It is a distinct system with federal and provincial tax layers, pension and employment insurance contributions, and remittance obligations that differ by jurisdiction.
Bridgewater TI process Canadian payroll for every province and territory accurately, on time, and fully aligned with the CRA, Revenu Québec where applicable, and provincial payroll requirements..
What We Calculate And Remit
Every pay run includes the following, calculated to the penny for each employee based on their province of work:
- Canada Pension Plan (CPP) Contributions – Both employee and employer portions, matched to current annual maximums.
- Québec Pension Plan (QPP) – Replaces CPP for Québec based employees, with different contribution rates.
- Employment Insurance (EI) Premiums – Employee and employer portions at the correct federal rate. Québec employees pay a reduced EI rate because QPIP covers parental benefits separately.
- Québec Parental Insurance Plan (QPIP) – An additional premium / contribution system unique to Québec.
- Federal Income Tax – Calculated based on the employee’s TD1 federal form (or TP-1015.3-V in Québec) and annual earnings.
- Provincial Income Tax – Calculated based on the employee’s province of employment and applicable provincial TD1 form.
- Employer Health Tax (EHT) – Applicable in Ontario and British Columbia where employer-paid health levies apply. Manitoba has the Health and Post Secondary Education Tax Levy, and some other provinces have employer payroll / health related levies.
- Workers’ Compensation Premiums – WSIB, WorkSafeBC, WCB, or the equivalent board for the employee’s province.
“We’ll just run them through our US payroll.”
Reality: Canadian employees are generally required to be processed through Canadian payroll, with deductions remitted to CRA, Revenu Québec where applicable, and other provincial authorities on the correct schedule. Canadian employment requires Canadian Payroll with deductions calculated under Canadian tax law, remitted to the CRA in Canadian dollars, and reported on T4 slips at year end.
Understanding Canadian Payroll is essential when employing staff in more than one province, and it’s a common reason employers choose to work with a Canadian Payroll Specialist.
How It Works
- You Approve The Pay Run
Before each pay period, we prepare the payroll summary for your review. You confirm hours, any variable compensation (commissions, bonuses, overtime), and approve the run. - We Process Everything
Gross-to-net calculations, all deductions applied, payments processed in Canadian dollars through local banking infrastructure. Payslips generated for every employee. - Remittances Are Filed
CPP, EI, income tax, and all provincial levies are remitted to the CRA and provincial authorities on the correct schedule. You never touch a government portal. - You Get Full Reporting
Consolidated payroll reports showing total costs, employer contributions, deductions, and net pay by employee. Full visibility, zero administrative burden on your side.
Why Payroll Accuracy Matters
A payroll error is not a rounding issue. It is a breach of trust with your employee and a compliance risk with the CRA. Late or incorrect remittances trigger penalties CRA penalties that vary by lateness.
This can be 3%, 5%, 7%, 10%, or 20% in certain repeat / gross negligence cases.
Incorrect deductions can result in employee complaints to provincial ministries of labour. Payroll mistakes in Canada are difficult to fix retroactively without creating additional tax complications.
Our payroll team includes certified Payroll Compliance Professionals (PCP) and a Payroll Leadership Professional (PLP) – designations maintained through the National Payroll Institute. This is not a generic HR team running payroll as a side task.
It is a team of specialists whose entire focus is getting Canadian payroll right.
Year End Filing
We prepare and file all T4 slips and T4 summaries with the CRA by the last day of February (end of calender year) deadline. Relevé 1 slips are filed with Revenu Québec for Québec employees. Records of Employment (ROE’s) are issued when employees leave. Every year end obligation is handled accurately and on time.
Where required, we provide accurate payslips that not only satisfy legal requirements, but also contribute to employee confidence and builds trust in your process.
Ready To Hand Off Canadian Payroll?
Book a call. We’ll review your setup and show you how we’d handle payroll for your Canadian team.