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Payroll Handled — Source Deductions, Remittances & T4s

Reviewed by EverStone CPA · July 2026

If you pay yourself or a team a salary, CRA expects source deductions withheld, remitted on schedule, and reported on T4s. We run all of it remotely, so the deadlines and the math are never your problem. At EverStone CPA, payroll is run by the same Abbotsford, BC firm that handles your books and year-end — not a separate provider.

Quick answer: Canadian employers must withhold income tax, CPP and EI from every payroll and remit those source deductions to the CRA — for regular remitters, by the 15th of the month after employees are paid — then issue T4 slips each February. EverStone runs payroll, remittances and T4s for incorporated owners online.

The payroll failures that cost owner-managed corporations most are late remittances that attract a penalty the day after the deadline, an owner salary run informally, T4 slips that do not reconcile to what was actually remitted, a missed record of employment, taxable benefits found only at year end, and paying an employee as a contractor
The payroll errors that reach a penalty fastest.

Running payroll through your corporation is more than sending someone their pay — it means opening a payroll (RP) account, withholding the right income tax, CPP and EI, remitting it to CRA by the deadline, and reconciling it to T4 slips at year-end. Miss a remittance and the penalties are immediate and steep. We take the whole cycle off your plate and keep it clean, whether you have one employee (yourself) or a small team across Canada.

Hospitality payroll has its own complications, from controlled tips to constant records of employment — the restaurant and hospitality accounting hub covers them together.

What our payroll service covers

  • Opening and managing your CRA payroll (RP) program account
  • Calculating income tax, CPP and EI withholdings on every pay run
  • Remitting source deductions to CRA on your required schedule
  • Year-end T4 and T4A slips and summaries, filed on time
  • Records of Employment (ROEs) when someone leaves
  • Owner-salary setup coordinated with your salary-vs-dividend plan
Where payroll goes wrong

Statutory holiday pay is a recurring source of quiet error, particularly where staff work irregular hours: the qualifying test is 30 days employed plus wages earned on 15 of the last 30 days, and the amount is an average day's pay rather than a standard shift. Our guide to statutory holiday pay for employers sets out the calculation.

The payroll mistakes that cost small corporations most

Payroll penalties are among the fastest CRA assesses, because the deadlines are frequent and the amounts are unforgiving. Here is where owner-run corporations most often slip. Before a pay run goes out, the payroll deduction calculator shows what should come off the cheque and what the employer owes on top.

Missed or late remittances

Source deductions have their own remittance schedule, separate from your corporate tax deadline, and CRA charges a penalty the moment a remittance is late — even by a day. For most new small employers, remittances are due by the 15th of the month after you pay wages. We track the schedule and remit on time, every time.

Getting your own salary wrong

Paying yourself a salary creates RRSP room and CPP, but it also means withholding and remitting on your own pay. Owners often run their salary informally and create a reconciliation mess at year-end. We set your owner-salary up properly from the first run.

Salary vs. dividends is a real decision — we model both before setting up payroll so the choice fits your situation.

T4s that don’t match remittances

At year-end, your T4 slips have to reconcile to what you actually remitted through the year. Gaps trigger CRA notices. Because we handle both the remittances and the slips, they always tie out.

Forgetting the ROE

When an employee leaves, a Record of Employment is required within a set timeframe — miss it and you create problems for both the employee and the corporation. We issue ROEs correctly and on time.

Mixing contractors and employees

Paying someone as a contractor when CRA would consider them an employee is a costly misclassification. We help you get the relationship right before it becomes a payroll-tax assessment.

How it works

Working with EverStone, start to finish

1

Free consult & setup

We review how you pay yourself and any team, open or clean up your RP account, and quote a fixed fee before any work begins.

2

We run each cycle

You tell us hours or amounts; we calculate withholdings, prepare pay, and remit source deductions to CRA on schedule.

3

Year-end, handled

We file your T4/T4A slips and summaries, reconcile them to your remittances, and issue any ROEs — no scramble in February.

Payroll works best alongside your bookkeeping and corporate tax, so your pay, source deductions and year-end all reconcile in one place. See also our guide to payroll remittances and the RP account.

Questions

Payroll questions from business owners

Do I need to run formal payroll if I only pay myself?+
If you pay yourself a salary (rather than dividends), yes — you need a payroll account, you must withhold and remit source deductions on your own pay, and you file a T4 at year-end. If you pay yourself only dividends, you file a T5 instead and don’t run payroll. We help you decide which approach fits and set it up correctly.
When are payroll remittances due?+
It depends on your remitter type. Most new and small employers are "regular remitters," meaning source deductions are due by the 15th day of the month following the month you paid wages. Larger payrolls remit more frequently. We confirm your schedule and remit on time.
What happens if a remittance is late?+
CRA charges a penalty on late remittances, calculated on the amount and how late it is, and repeated lateness increases the rate. It’s one of the fastest penalties CRA assesses, which is exactly why we manage the schedule for you.
Can you run payroll if my team is in different provinces?+
Yes. We handle payroll remotely for teams across Canada, accounting for the correct provincial factors. Everything is done by secure upload and video call — nothing requires an in-person visit.
Do you handle T4s and ROEs too?+
Yes. Year-end T4 and T4A slips, the T4 summary, and Records of Employment when someone leaves are all part of the service, reconciled to the remittances we made through the year.
Do I need a payroll account with CRA before my first pay run?+
Yes. An RP payroll account must be open before you remit, and opening it after the fact does not undo a late remittance. Set it up as soon as you know you will pay anyone, including yourself by salary. Corporations that pay only dividends do not need a payroll account, which is one reason the salary-versus-dividend decision is worth making deliberately.
Do taxable benefits change what I have to remit?+
Yes. Benefits such as a company vehicle, certain insurance premiums or personal use of company assets are added to the employee’s income, which increases source deductions during the year and must be reported on the T4. Catching them only at year-end creates a large correction and, sometimes, an underpayment. Identify benefits when they start, not in February.
Fixed feesClear, fixed pricing — you approve the fee before any work begins. No surprise bills.
One dayWe reply to every enquiry within one business day — usually the same day.
CPA-ledEvery file is handled personally by a CPA — never passed to junior staff.
No obligationYour first consultation is free, with zero pressure and no obligation.
What clients say

Why clients stay with EverStone

Verified 5-star Google reviews from EverStone CPA clients.

★★★★★

“Highly recommend working with Sunny. We switched to him last year for both our personal and small-business taxes — responsive, knowledgeable and quick.”

Heather Powers
Verified Google Review
★★★★★

“Personal. Professional. Responsive. Plus he saved me a bundle!”

Corrin Skalbeck
Verified Google Review
★★★★★

“I have worked with Sunny for the past 2 years. He is very knowledgeable and has saved me tons in taxes by restructuring my group of companies — the best accountant I've worked with in the last 10 years, after switching from three different firms.”

Matt Hildebrandt
Verified Google Review

Official resources: CRA — Payroll · T4001 Employers’ Guide

Information on this page was last reviewed in July 2026. See our how our content is reviewed.

Payroll questions that come up once you have staff on the books: T4, T4A and T5 slip deadlines, putting a spouse on the payroll, employee versus contractor classification, BC's Employer Health Tax.

Related reading

Guides and tools that go deeper on what this page covers.

Want payroll off your plate?

We’ll set up your payroll account, run every cycle, remit on time and handle year-end slips — at a fixed fee, fully online. Book a free consultation.

We run payroll for owner-managed businesses right across Canada — including for our Vancouver page, Toronto business owners, CPA for Ottawa owners, Calgary, accountant in Edmonton and Winnipeg small business accountant.

For the background reading, the payroll hub annotates every guide on remittances, slips, taxable benefits and owner compensation.

Still deciding how to bring someone on? Hiring an employee vs a contractor covers what each model commits the business to.