For students in ACC232 Covers basic employer responsibilities

1. Payroll
Employer’s responsibilities

2. The taxman has an interest

3. Visit their website

4. THE PAYROLL STEPS

5. 1. Determine your status
• Are you an employer, trustee or payer?

6. 1. Determine your status
• Are you an employer? , trustee or payer
– contract of service
– In all situations, the written contract (if applicable)
and working conditions must be examined to
determine if an employer-employee relationship
exists.
– RC4110 (Employee or Self-Employed)

7. 2. Open a payroll account
A payroll account is an account number assigned
to an employer to identify themselves when
dealing with the Canada Revenue Agency.
• 15-digit payroll account number
– the 9-digit BN;
– 2 letters for the type of account
(For payroll the letters are "RP"); and
– 4 numbers for the specific account reference

8. Obtaining a BIN
• By phone
• By internet
• By mail

9. When?
You have to register for a payroll account before
the first remittance due date.
Your first remittance due date is the 15th day of
the month following the month in which you
began withholding deductions from your
employee's pay.

10. Your new employee started work on
June 1st. When must you register as
an employer?
By June 30th
No later than June 15th
Before July 15th
As soon as you hired the employee
By December 31st

11. Your new employee started work on
June 1st. When must you register as
an employer?
By June 30th
No later than June 15th
Before July 15th
As soon as you hired the employee
By December 31st

12. Remittance dates
Remittance due dates are always based on when
an employee is paid for his or her services
(pay day) rather than the pay period for which
the services are rendered.
New employers are considered regular
remitters.

13. Regular Remitter
The remittance due date is the 15th day of the
month following.

14. You hire an employee on March 10 and you pay
him bi-weekly. The first pay is on March 24th.
When is the remittance due?

15. You hire an employee on March 10 and you pay
him bi-weekly. The first pay is on March 24th.
When is the remittance due?
April 15th

16. The pay week starts on Monday and
ends on Sunday. The cheques are issued
the following Tuesday. When is the
remittance due?
Monday – June 28
Sunday – July 4
Pay date - July 6th

17. The pay week starts on Monday and
ends on Sunday. The cheques are issued
the following Tuesday. When is the
remittance due?
Monday – June 28
Sunday – July 4
Pay date - July 6th
August 15th

18. The pay week starts on Monday and ends on
Sunday. The cheques are issued the following
Monday. When is the remittance due? (The
employee does not work on the weekend.)
Monday – May 26st
Sunday – June 1st
Pay date - June 2nd

19. The pay week starts on Monday and ends on
Sunday. The cheques are issued the following
Monday. When is the remittance due? (The
employee does not work on the weekend.)
Monday – May 26st
Sunday – June 1st
Pay date - June 2nd
July 15th

20. The Payroll Steps
• Determine your status
• Open a payroll account

21. 3. Hire employees
• Obtain the SIN from each employee who is in
pensionable or insurable employment.
• Under the Canada Pension Plan Regulations, if
an employee doesn't have a SIN card, you
must inform him or her within three days of
when they start working for you how to get
one.

22. 3. Hire employees
• Have the employee(s) complete a TD1
• Individuals who have a new employer have to
complete the federal TD1 and, if more than
the basic personal amount is claimed, the
provincial or territorial TD1.

23. 4. Calculate deductions
Statutory deductions
• CPP
• EI
• Federal tax
• Provincial tax

24. 5. Remit deductions

25. 6. File information returns

26. 6. File information returns
• Monthly remittances [PD7A]
• Annual filing
– T4s
– T4 summary

27. 7. Keep records
• The hours worked by each employee;
• The CPP contributions
• EI premiums
• Taxes
• TD1
• Letters of authority
• All information slips and returns

28. How long must you keep
these records?

29. How long must you keep
these records?
6 years

30. Ministry of Labour
Ministry of labour has an interest too.
They require the following records be kept.

31. Ministry of Labour
• Name, address and starting date of employment.
• Date of birth if the employee is a student under 18.
• The hours worked by the employee each day and week.
• Written agreements to work excess hours or average
overtime pay.
• Vacation time records.
• Vacation pay records.
• Information contained in an employee's wage statement.
• All the documents relating to an employee's pregnancy,
parental, family medical, organ donor, personal
emergency, declared emergency, or reservist leave.

32. Ministry of Labour
• Name, address and starting date of employment.
• Date of birth if the employee is a student under 18.
• The hours worked by the employee each day and week.
• Written agreements to work excess hours or average
overtime pay.
• Vacation time records. How long?
• Vacation pay records.
• Information contained in an employee's wage statement.
• All the documents relating to an employee's pregnancy,
parental, family medical, organ donor, personal
emergency, declared emergency, or reservist leave.

33. Ministry of Labour
• Name, address and starting date of employment.
• Date of birth if the employee is a student under 18.
• The hours worked by the employee each day and week.
• Written agreements to work excess hours or average
overtime pay.
• Vacation time records. 3 Years
• Vacation pay records.
• Information contained in an employee's wage statement.
• All the documents relating to an employee's
pregnancy, parental, family medical, organ
donor, personal emergency, declared emergency, or
reservist leave.

34. END