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Elements of Organizing Financials

Payroll and Taxes

Ensuring that your staff are paid correctly, and on time is very important. Decide on a payroll system that ensures staff are paid accurately and on time, while complying with employment standards. There are a variety of payroll software that calculate taxes, benefits, and other deductions, as well as keep track of all your payroll. You will need to provide your employees accurate T4 statements, by the deadline each year. 

As a business or organization administrator, it is important to stay informed about tax requirements. Ensure that you have all staff fill out required payroll tax forms. You will need to ensure you understand how and when to remit taxes when required and set aside funds for tax payments required. It is highly recommended that you work with an accountant to prepare and file taxes accurately and on time. 

In Canada, employers are responsible for remitting taxes and filing T4 slips (Statement of Remuneration Paid)  with the Canada Revenue Agency (CRA) for each employee they paid during the tax year. Here’s a breakdown of their key responsibilities:

Remit Payroll Deductions on Time

Throughout the year, employers must deduct and remit:

  • Income tax
  • Canada Pension Plan (CPP) contributions
  • Employment Insurance (EI) premiums

These remittances must be sent on time (usually monthly or semi-monthly, depending on business size).

Provide each employee with a T4 slip by the last day of February following the end of the tax year. 

The T4 should include:

  • Total employment income
  • Deductions (CPP, EI, income tax)
  • Other taxable benefits (e.g., health benefits, allowances)
  • Pension adjustments, union dues, etc.
  • Employees must receive their copies electronically or in paper format.
File T4 Slips and T4 Summary with the CRA

Employers must submit all T4 slips and the T4 Summary to the CRA by the last day of February (or the next business day if it falls on a weekend). Filing can be done:
  • Online through CRA’s My Business Account or Represent a Client
  • Through payroll software that supports XML internet file transfer
  • On paper (if filing fewer than 50 slips, though online is encouraged)
Ensure Accuracy in Reporting

Employers are responsible for ensuring all reported amounts are accurate and match payroll records. Common errors to avoid:

  • Incorrect income or deduction amounts
  • Misclassification of taxable benefits
  • Omitting terminated employees or those who only worked part of the year




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