Have you ever wanted to set up payroll for QuickBooks Online but felt the instructions that were given didn’t work? Have no fear I have created a step by step approach to setting up payroll for QuickBooks Online. I’ve started with the most obvious step and continue on to include the steps QuickBooks Online uses.
Register for Payroll with CRA
Before you can begin to use any payroll features in QuickBooks Online, you need to register your business with CRA. To do this you need to get a business number. https://www.canada.ca/en/services/taxes/business-number.html
Next, you must open a payroll program account with CRA. A payroll program account is an account number that identifies your business to CRA. This is a nine-digit business number that is unique to your business with the letters RP for registered payroll.
You must register for the payroll account program before the first remittance due date. This is generally the 15th of the following month in which you first start withholding the deductions from the employee’s paycheque. https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-overview/employer-responsibilities-payroll-steps/opening-a-payroll-program-account/you-open-a-payroll-program-account.html
An employee is hired August 1 2017 and you pay her bi-weekly. The first pay is August 16 2017, and the first remittance date is September 15 2017.
As an employer, you are still responsible for calculating deductions and remitting them by the due date even if you don’t register before hiring a new employee.
Hire an employee
Now that you have registered your business for payroll, now you can go ahead and hire an employee.
Next, you have to calculate and withhold Canada Pension (CPP), EI premiums, Income Tax along with the employer’s share of CPP contributions, and EI premiums.
Completing forms and filing information returns
The next step is to report the employee’s income and deductions on a T4 or T4A slip.
As an employer, you are required to keep accurate and up to date records on all of your employees.
Get ready for QuickBooks Online Payroll
Now you are ready to start payroll for Quickbooks Online.
This is relatively easy and painless according to the makers of QuickBooks
- Sign into QuickBooks
- Click Employees
- Click Set up Payroll
- Enter information about employees
- Enter the hourly pay or commission
- Enter the start date of the employee
- Enter the pay period, usually 2 weeks
- Enter the date for whidh you have to remit the deductions, usually, the 15th of the following month.
- If all else fails, call in a pro to get you out of your jam.
Mathew Jazenko is a GTA bookkeeper and tax preparer and enjoys helping small businesses straighten out the books especially with payroll. email@example.com or Call 289-500-1978