Guide to Global Payroll Management - 2020 - 11-3
A Primer on Payroll in Canada
OTHERS
Other external stakeholders include charities (regarding employee donations) banks (regarding
Canada Payroll Savings plans) and service bureau or software vendors who work with the
payroll department to ensure the payroll is being administered accurately and efficiently.
ROLES & RESPONSIBILITIES OF THE PAYROLL
DEPARTMENT
The primary role of the payroll department is to provide employees with accurate payment for
service rendered on a consistent and timely basis. The two key words in the definition of this
role are accurate and timely. Accurate payment entails more than correctly calculating the
amount due; it includes withholding the correct source deductions in accordance with the rules
and regulations dictated by provincial and federal bodies.
The fundamental responsibilities for all payroll departments are as follows:
deduct, remit and report Canada Pension Plan (CPP) contributions, Employment
Insurance (EI) premiums and federal and provincial income tax deductions (except
Quebec) to the Canada Revenue Agency
deduct, remit and report Quebec Pension Plan (QPP) contributions, Quebec Parental
Insurance Plan (QPIP) premiums and Quebec provincial income tax deductions to
Revenu Québec
report insurable hours and insurable earnings on the Record of Employment (ROE) to
Service Canada
collect and report information to various government bodies on the number of employees
and wages paid
calculate, report and remit assessable premiums to the appropriate provincial/territorial
Workers' Compensation Board (WCB)
collect and remit provincial health care plan premiums (British Columbia) and/or
calculate and remit provincial health care taxes or levies (Manitoba, Newfoundland and
Labrador, Ontario and Quebec)
deduct and remit payroll taxes in the Northwest Territories and Nunavut
deduct and remit garnishments and family maintenance/support deduction orders
maintain payroll records as required by the governing bodies
deduct, remit and report dues and initiation fees to a union as required by the collective
agreement
deduct, remit and report employee contributions for company benefits, e.g. pension, life
insurance, dental, medical, income replacement plans
reconcile payroll accounts and prepare payroll accounting journal entries
provide internal reports, for example, labour cost distribution, employee headcount,
terminations, new hires, attendance, vacation
© The Canadian Payroll Association/L'Association canadienne de la paie 2020 11-3
Guide to Global Payroll Management - 2020
Table of Contents for the Digital Edition of Guide to Global Payroll Management - 2020
Table of Contents
Guide to Global Payroll Management - 2020 - Intro
Guide to Global Payroll Management - 2020 - Cover1
Guide to Global Payroll Management - 2020 - Cover2
Guide to Global Payroll Management - 2020 - A
Guide to Global Payroll Management - 2020 - B
Guide to Global Payroll Management - 2020 - C
Guide to Global Payroll Management - 2020 - PV-1
Guide to Global Payroll Management - 2020 - PV-2
Guide to Global Payroll Management - 2020 - D
Guide to Global Payroll Management - 2020 - E
Guide to Global Payroll Management - 2020 - F
Guide to Global Payroll Management - 2020 - Table of Contents
Guide to Global Payroll Management - 2020 - 2
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Guide to Global Payroll Management - 2020 - PI
Guide to Global Payroll Management - 2020 - PI-1
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Guide to Global Payroll Management - 2020 - PIV
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Guide to Global Payroll Management - 2020 - AppA
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