5.5 Opening a Payroll Account
If you already have a Business Number (BN), you only need to add a payroll account to your existing BN. If you do not have a BN, you will need to register for a BN and a payroll account. You can register by phone, mail, in person, or through the integrated Business Registration Online service. This convenient service lets you
- register a business for a BN and
- register for all the CRA programs including payroll deductions, GST and (if you are practising through a professional corporation) corporate income tax accounts.
You should register for your payroll account before the first remittance due date. In most cases the first remittance due date will be the 15th day of the month following the month in which you began withholding deductions from an employee's pay. For example:
You hire your first employee on March 16 and pay on the 15th and the 30th of every month. The first pay is on March 30; therefore, your first remittance is due April 15. You should open your payroll account prior to April 15.
If you do not open your account before the due date, you are still responsible to calculate the deductions and remit. There is a penalty for failure to deduct and remit amounts.