Payroll Set-Up Made Simple

Want to set up payroll? Here’s how to get started

Figuring out how to set up payroll can feel intimidating, whether you’re preparing for your first pay run or getting your payroll tools organized. The good news is that payroll in Canada comes down to a few core pieces. Once those are in place, the ongoing work becomes much more routine.

Here’s a simple, high-level overview of the three areas you’ll need to address as you get your payroll system into shape.

Learn more about getting started with Huumans Payroll.

1. Open federal and provincial payroll accounts 

When you pay employees, there’s also a tax component. To properly track federal payroll taxes, you’ll need a payroll account with the Canada Revenue Agency (CRA).

How to register for a payroll account with the CRA:

All businesses must register for a federal payroll account in order to comply with tax guidelines. 

• Search “register for a payroll account in Canada” or visit the current registration page. (The fastest way to register is online.) 

• Ensure you have the following information:
  
  

  • Your business number (BN)

  • Business address and contact email

  • Current payroll records (if applicable) 

  • Payroll service name (if applicable)

  • Name of franchisor and country of the franchise's head office (if applicable)

When to register for provincial tax accounts

If your business is either paying employees or located in the provinces below, you’ll also need to register accounts for:

• British Columbia — Employer Health Tax (EHT)

• Manitoba — Health and Post-Secondary Education Tax (HE Levy) 

• Newfoundland and Labrador — Health and Post-Secondary Education Tax (HAPSET)

• Ontario — Employer Health Tax (EHT)

• Québec — Pension Plan (QPP) and Health Services Fund (HSF) 

Helpful tip: Keep track of all these numbers. You’ll need them for setting up your payroll and filing your tax reports. When you open your accounts, you’ll also be given your payroll remittance schedule that tells you when your payroll taxes are due. 

For deeper dives on these topics, see our articles on federal and provincial payroll taxes. They’ll explain more about what these taxes are and how they work.  

2. Gather your payroll information 

Whether you’ve already been paying employees or you’re organizing your payroll set-up, you’ll need the following details:

• Business banking information — the details of the account you’ll use for running payroll.

• Employee TD1 information and banking information — social insurance numbers (SINs), legal names, addresses, tax credits, and direct deposit details. 

• Payroll schedule — weekly, bi-weekly, semi-monthly, or monthly.

• Salary and wage rates — what you pay each employee. 

• Paid time off and vacation — accrual rates and statutory holidays. 

• Payroll year-to-date amounts — if you’ve already run payroll this year. 

• Contribution and deduction amounts — the amounts you either add or subtract from each payroll. 

Having all of this pulled together before you start your set-up saves a ton of time. It lets you focus on the actual set-up rather than tracking down information.

3. Decide how you’ll run payroll 

Your payroll method determines how simple or time-consuming every payday will be. Manual payroll can take hours or even days for each pay run. Manual processes also put you at a greater risk for mistakes.

• If you choose to run payroll manually, set aside enough time to manage the calculations and reporting. (Hint: Calculators will be your new best friend.) 

• If you choose to automate payroll with software, find a provider that has dedicated support, clear pricing, and automated tax calculations.

• Determine if you’ll run payroll for your small business or if you’ll have your bookkeeper or accountant do this for you. 

Not sure what to look for in payroll software? This checklist will help. 

Solve payroll and set your business up for success 

Finding the right payroll software is one thing. At Huumans, we make this easy by letting you use our payroll application to pay up to five employees for an entire year.  Huumans Payroll covers all the essentials from direct deposit to year-end T4, T4As, and RL-1 slips. Plus, when you sign up for your free payroll, you can count on dedicated support to help you set up or transition all the payroll information you’ve gathered inside the software. 

Connect your payroll data to your business data 

Huumans connects you to a financial operating system where your payroll data is instantly linked to the rest of your financial data. And whenever you have questions, you can ask Roy, your very own AI CFO. Get the complete picture and greater clarity with Huumans. 

Sign up and get access to all of these tools for free. 

Fine print changes all the time. We do our best to keep things accurate and helpful, but this blog doesn’t replace your accountant, bookkeeper, or lawyer.

If you catch something off, let us know and we’ll fix it. And if we link to other sites, that’s just us sharing resources — what they say is on them, not us.