How Do I Set Up Payroll for Employees in Calgary?

Before processing payroll, confirm which legal entity employs the worker and open the CRA payroll program account tied to that entity’s business number. CRA moved new business-number and program-account registrations to online Business Registration Online in November 2025. The registration details, remitter type, and first pay date need to be correct because they drive account correspondence and deadlines. Do not run payroll for one company through another company’s account simply because the owners are the same.

For each employee, record the legal name, address, social insurance number, start date, role, pay rate, pay frequency, and relevant benefits or deductions. Obtain the federal and Alberta TD1 forms when required. CRA explains that a new employee generally completes TD1 forms when starting work and in other listed situations where tax credits change. Store sensitive information securely and limit access to people who actually need it for payroll administration.

Each pay run starts with gross earnings: regular hours, overtime where applicable, bonuses, commissions, vacation pay, taxable benefits, and other remuneration. Then calculate required income-tax deductions, Canada Pension Plan contributions, and Employment Insurance premiums using current CRA guidance. CRA’s Payroll Deductions Online Calculator and current T4032 tables are designed for this work. Rates, maximums, and thresholds can change, so an old spreadsheet should not be treated as a permanent payroll engine.

The employer generally remits employee deductions together with the employer portions of CPP and EI. The due date depends on the remitter category assigned under CRA rules. A new employer should confirm its frequency rather than assume a monthly date. Late or incorrect remittances can lead to interest and penalties. Schedule the transfer before the deadline, retain confirmation, and reconcile the payment to the payroll liability account instead of recording it as a second wage expense.

Use a written pay calendar showing timesheet cut-off, approval, processing, payment, and remittance dates. One person should prepare changes and another authorized person should review new employees, terminations, bank changes, unusual hours, bonuses, and the payroll register before release. Protect against payment redirection fraud by verifying bank-detail changes through a trusted channel. After processing, compare payroll totals with the bank file and general ledger.

At month-end, reconcile gross wages, source deductions, employer contributions, benefits, vacation balances, advances, and remittances. Keep employment agreements, time records, approvals, TD1 forms, payroll registers, benefit calculations, and CRA confirmations in a consistent structure. This provides better management reporting and makes T4 preparation far easier. Payroll can be outsourced, but the employer still needs accurate approvals and remains responsible for obligations. A professional setup is less expensive than rebuilding incomplete records after missed remittances or a year-end discrepancy.