Payroll that runs reliably, every pay period
Paying your employees is one of the most important things your business does, and one of the easiest places for small mistakes to grow into bigger problems. A wrong deduction, a missed remittance or a late T4 can lead to CRA penalties and interest, as well as frustrated employees. At Trehan & Company, we provide guidance and preparation of regular payroll transactions for small and medium size businesses in Edmonton, Sherwood Park and the surrounding areas.
We look after the pieces that tend to pile up on a busy owner's desk: calculating gross pay and deductions, preparing pay records, remitting source deductions to the CRA, filing monthly payroll remittance returns, and producing annual T4 slips and other government filings. We also help you implement controls so that your payroll system is reliable, efficient and effective, whether you have one employee or a growing team.
Payroll is rarely a stand-alone task. It connects to your bookkeeping, your year-end accounts and, for incorporated businesses, your corporate tax return. When one firm that knows your business handles these pieces together, the numbers line up and there are fewer surprises when the year closes.
What our payroll service covers
Each part of the payroll cycle is handled with care, from your first hire to the year-end slips.
Regular payroll preparation
We calculate gross pay, deductions and net pay for each pay period based on the hours, salaries and other amounts you send us. You receive clear pay records for your files and your employees.
Source deductions
We work out the CPP contributions, EI premiums and income tax to withhold from each employee's pay, along with the employer's share of CPP and EI.
CRA remittances
Deductions are remitted to the CRA on a schedule based on your remitter type. We track that schedule so payments go in on time and match your records.
T4 slips and T4 Summary
At year-end we prepare a T4 slip for each employee and the T4 Summary, both due by the last day of February.
Records of Employment
When an employee has an interruption of earnings, such as leaving the job or going on leave, a Record of Employment is issued. We prepare it from your payroll records.
Payroll controls
We help you set up simple approval and record-keeping practices so that every pay is accurate, authorized and easy to review later.
How we set up payroll for a new client
Getting the foundation right makes every pay period after it simpler.
- 1
Confirm your payroll account
Employers need a payroll program account (RP) attached to their CRA Business Number. If you don't have one yet, we'll explain how it's opened and what information the CRA needs.
- 2
Set up each employee
For each employee we gather the details payroll requires, including SIN, address, start date, rate of pay and completed federal and provincial TD1 forms, which determine the tax credits used when calculating income tax withholding.
- 3
Agree on pay frequency and process
We confirm how often you pay your staff – for example weekly, every two weeks, twice a month or monthly – and how you'll send us hours, new hires and changes each period.
- 4
Run payroll and remit
We prepare each payroll, provide pay records and calculate the amounts to remit to the CRA on your schedule, so you always know what is due and when.
- 5
Close the year
After December, we reconcile the year's payroll and prepare T4 slips and the T4 Summary for filing by the end-of-February deadline.
Understanding source deductions
Each time you pay an employee, you are generally required to withhold three amounts: Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums and income tax. As the employer, you also pay your own share of CPP and EI on top of what is withheld from the employee. Amounts withheld from employees are held for the government, which is why the CRA treats payroll remittances so seriously.
How much you withhold depends on each employee's pay, how often they are paid and the tax credits claimed on their TD1 forms. Taxable benefits, bonuses, vacation pay and other extra amounts can also affect the calculation. Rather than guess, we'll confirm what applies to your employees and calculate it correctly from the start.
Remittances are sent to the CRA on a schedule based on your remitter type, which depends on the size of your payroll withholdings. The CRA lets you know which schedule applies, and it can change as your business grows. Keeping to that schedule is one of the simplest ways to avoid penalties and interest.
Year-end: T4 slips, the T4 Summary and ROEs
Payroll does not end with the last pay cheque in December. Every employer prepares a T4 slip for each employee showing their employment income and deductions for the year, and files a T4 Summary that totals everything. Both are due by the last day of February, and your employees need their T4s to file their own personal tax returns.
During the year, a Record of Employment is issued when an employee has an interruption of earnings. Employees often rely on their ROE when applying for Employment Insurance benefits, so accuracy matters. We prepare ROEs from the same payroll records we use all year, which keeps the figures consistent.
- Reconciliation of pay, deductions and remittances
- A T4 slip for each employee
- T4 Summary filed by the last day of February
- ROEs when an employee has an interruption of earnings
- Payroll records kept for six years
Payroll controls that protect your business
Good controls catch errors early and make your payroll easy to explain if anyone ever asks.
Before each pay run
- Approved timesheets or hours
- Written record of pay changes
- TD1 forms for new hires
- Notice of departures or leaves
After each pay run
- Pay records reviewed and approved
- Remittance amount confirmed
- Payment made by the due date
- Pay stubs available to employees
Throughout the year
- Payroll reconciled to the books
- Employee files kept current
- CRA notices reviewed promptly
- Records kept for six years
Flexible payroll support for your way of working
Every business runs payroll a little differently. Some owners prefer to send us hours each pay period and let us handle everything from calculation to remittance. Others run their own payroll and want us to review it, file the remittance returns and prepare the year-end slips. We tailor the service to how you work and how much you want to stay involved.
If you own a corporation, payroll also raises questions about paying yourself. Whether a salary, dividends or a combination makes sense depends on your personal and corporate situation, and it is a conversation worth having before the year ends rather than after. We'll walk through the general considerations and confirm what applies to you.
If the CRA reviews your payroll
From time to time, the CRA reviews or audits employers' payroll records to check that deductions were calculated correctly, remittances were made on time and T4s agree with what was remitted. Questions can also come up about whether certain workers should be treated as employees or as self-employed contractors, or whether a benefit should have been taxable.
Because we prepare your payroll, we already know your records, and we also handle CRA payroll audits through our CRA compliance service. We'll help you understand what the CRA is asking for, gather the supporting documents and respond in an organized way. Clean, consistent records from day one are the best preparation.
If you have been running payroll yourself and suspect something has gone wrong – a missed remittance, a wrong rate or slips that don't reconcile – talk to us. Problems are usually much easier to correct when they are found early rather than after the CRA raises them.