13 Best Payroll Software in Canada (2024)
The best Canadian payroll software services, with in-depth info on their features, pricing, drawbacks and more.
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As a business set up in Canada, it is only wise you are critical of the payroll vendor you choose to handle one of the most important aspects of your business. Costing organizations up to 70% of total business costs, improper handling of your labor costs can have severe impacts on your bottom line. Choosing one that is not built to understand Canadian legislation around payroll can be dire for your business in the long run.
On the other hand, well-rounded Canadian payroll software will be beneficial to your business in so many ways. Companies have recorded massive successes using some of the payrolls in this article; some as unbelievable as 1000% return on investment (ROI).
The good thing is, you don’t have to do all the hard work of looking for one that will best suit your business and will, at the same time, ensure compliance with Canadian provincial laws; we have done a good part of the work for you. We put in hours of research to bring you a list of the best payroll vendors for a variety of Canadian businesses— big, small, freelance, etc.
We will also talk about what you need to look out for before committing to a particular software, some pitfalls to avoid, and we will be answering some commonly asked questions around the topic, so stick around till’ the end.
Top Canadian Payroll Software
When selecting the best Payroll Vendors for Canadian Businesses, we talked to Canada-based business owners and HR professionals in many industries to see how they were handling payroll. We also spoke to the product teams at each shortlisted software company, had demos, and got feedback from their clients.
Payroll vendors needed to excel on numerous fronts to make the final cut, and on the following three more heavily: Canadian legislation compliance, customer support, and reporting capabilities.
- Canadian Legislation Compliance: Our priority was ensuring vendors adhere to Canadian payroll legislation in an outstanding fashion. We rigorously assessed their capability to handle complex regulations, tax requirements, and statutory deductions unique to Canada.
- Customer Support: We focused on vendors providing exceptional assistance to Canadian businesses. The chosen solutions offer reliable support channels to swiftly address queries, ensuring seamless payroll operations and prompt issue resolution.
- Reporting Capabilities: Software products with comprehensive reporting features tailored for Canada were easy to earmark. Rest assured, the tools below provide diverse customizable reports, empowering businesses with insights for managing costs, compliance, and workforce optimization.
We also tried to pick tools with modern-looking UX and simple workflows that are easy and intuitive to figure out for both the payroll manager and the small business owner. For more insights into how we come up with these lists, read our general criteria for evaluating HR tech vendors.
Deel
PapayaGlobal
Rippling
ADP
Ceridian
QuickBooks
Wagepoint
Payworks
Wave Payroll
Humi
Knit People
Rise People
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Deel
Deel has a robust global payroll offering that of course covers Canada as well as 150 other countries for companies that need to pay contractors and employees internationally.
PROS
- Customer support is one of Deel’s standout qualities. With around-the-clock in-app assistance and an industry-leading onboarding speed of 2-3 days, users gain access to local payroll specialists across various jurisdictions.
- This support is especially valuable for contractors navigating the complexities of establishing themselves as LLCs.
- The platform integrates with widely used business software like Quickbooks, Bamboo HR, and Greenhouse, among others. Custom integrations are available too.
- Deel's self-service approach is empowered by tech-enabled features. Our user research underscores the ease of setup; identity verification consistently takes less than 24 hours and sometimes mere minutes.
- The platform generates invoices automatically. This works for both the company and the contractor or employee's side.
- One of the best features of Deel is its customer service. They offer 24/7 in-app support and the fastest-in-class onboarding speed of 2-3 days. Users get access to local payroll experts in each jurisdiction, and support is available for contractors facing challenges setting themselves up as an LLC.
- Integrates seamlessly with common platforms like Quickbooks, Bamboo, Greenhouse, and more. They also offer custom integrations to automate and sync processes.
- Self-service approach; tech-enabled features so customers can jump in quickly and easily. Our user researchers found it quite easy to set up: the identity verification process consistently took less than 24 hours, and in some cases, it took mere minutes.
- Automated invoices, which are a breeze to do as long as they’re in English, both on the company and the contractor or employee’s side.
CONS
- Certain features, such as onboarding automation, are offered only as add-ons.
- The platform's flexibility in modifying contracts or service agreements is limited, often necessitating the use of addendums to accommodate changes.
- A $5 fee is charged per payout, which can accumulate over time, impacting cost-effectiveness, particularly for businesses managing frequent payouts.
- Currently, Deel's invoice generation is exclusive to English, which could pose constraints for organizations requiring multi-language invoicing capabilities.
- Some of Deel’s best and most powerful services, like onboarding automation, appear to be add-ons, which might be too costly for some companies
- There is little to no flexibility when it comes to altering their contracts or service agreements, so many changes would require an addendum.
- There is a $5 fee per payout
- As far as we’ve seen, it’s not possible to generate invoices in another language.
If you're looking for a Canadian payroll solution, Deel is a great option. Their offering will facilitate paying both contractors and employees in Canada. They also have a free HRIS that they recently launched in 2023. This HRIS offering includes the basic employee of record functionality, in addition to onboarding, employee engagement, and a host of other features.
If you're looking to pay employees in Canada, Deel will setup a local entity for your business, which allows you to compliantly pay employees. They will also take care of payroll taxes, necessary filings, benefits, and basically everything else you need to stay in compliance and keep your employees happy.
They also have a contractor offering in case you have non-employees that you need to pay and don't want to worry about the paperwork!
Best For
PapayaGlobal
Papaya Global simplifies payroll and benefits management for Canadian employees and contractors, regardless of location. Operating in over 160 countries, their EOR model ensures seamless operations.
PROS
- Papaya ensures swift payouts within 72 hours across 160+ countries.
- Personalized health plans for employees, tailored to their location, accessible through web and mobile platforms.
- Transparent pricing with a 60-day money-back guarantee.
- Dedicated customer success managers in your time zone for localized support.
- Starter monthly fee is reduced to $12 per employee for full-service payroll.
- Papaya Global packs the EOR services you need to do global payroll and employment compliantly in over 160 countries.
- Automated payments in over 100 currencies, 80 of them directly to the worker's bank account through its global banking partners.
- Dedicated customer support providing locations-specific knowledge regarding employment and payroll.
- End-to-end payroll guaranteed payouts in 72 hours.
- Offers four standalone solutions: data and insights, supplemental benefits & immigration support, payment services, and employee data management, making the platform more affordable and scalable.
CONS
- Limited local entities in certain operational countries; no tax penalty guarantee available.
- No provision for a free trial or plan.
- Additional costs include setup, onboarding, cycle per employee, and year-end fees, along with a refundable deposit.
- Limited integration options but access to free pre-built APIs and custom API integrations.
- No free trial or free plan.
- Doesn’t own entities in all the countries it serves. The platform forms relationships with existing local in-country partners to handle employment in a specific region on the client’s behalf.
- BI analytics reports and global immigration services cost additional fees.
- Charges extra fees for setup, onboarding, employee cycle, and tax filing. Also requires a refundable deposit.
- Built-in integration options aren’t very robust. However, the platform does offer pre-built APIs, SFTP, and custom API integrations for free.
Papaya Global is a good choice for Canadian businesses looking to pay workforces comprised of local and overseas employees. You can make sure to adhere to both Canadian and international regulations when it comes to payroll, benefits, and equity.
Their platform, which we’ve been following since early 2021, is one of the pioneering tools of the global payroll software industry. They put a software face on an employer-of-record model, making it a breeze to manage employees— and Contractors— in their 160+ jurisdictions.
The pricing, of course, varies with each scenario. That said, one of the things we appreciate about Papaya is that they have a fairly flexible offering. Regardless of your mix of Canadian and international employees, they can likely propose a package that suits your needs. The same goes for managing payroll across provinces.
Johnson & Johnson, Deezer, Wix, Fiverr, Microsoft, Intel, Toyota
- Full-Service Payroll service: Starts at $12 per employee per month, with flexible options based on operational needs.
- Payroll Platform License service: Begins at $3 per employee per location for tech upgrades.
- Data and Insights Platform License service: From $150 per employee per month, offering real-time analytics on payroll costs and headcount.
- Payments-as-a-Service service: Starting at $3 per employee per month, delivering a dedicated workforce payment platform.
- Global EOR plan: Ranges from $650 to $1000 per employee per month for comprehensive EOR management.
- Contractor Management & IC Compliance plan: Tailored services for outsourced contractors, starting at $2 per contractor per month.
- Global expertise services: Starting at $190 per month per employee, this lets you add the global health plan, immigration support, and global equity for employees.
Best For
Papaya Global is an excellent choice for Canadian businesses seeking to streamline global payroll and benefits operations, particularly for those with international hires within Papaya Global’s extensive country coverage.
Rippling
When it comes to Canadian payroll, Rippling can be an excellent choice because of their localized offering. Also, as a part of their recently-launched global payroll product, this portion of their broader HR suite could have you hiring people in Canada within minutes.
PROS
- Operates in CAD straight out of the box
- Strong workflow automation capabilities
- Wide analytics possibilities
- Holistic view of company outflows— headcount costs included
- All-in-one platform for employee management + PEO services offered, and even a suite of other IT products
- With 500 integrations, it’s very likely that they integrate with other key tools from your tech stack.
- Operates globally with any currency
- Workflow automation
- Analytics opportunities
- Provides a holistic view of company outflows—headcount costs included
CONS
Rippling’s payroll offering is not available as a stand-alone tool. Getting the core HR platform is necessary in order to access it.
- Total buy-in to Rippling is essential
- Very SMB-oriented, in case you’re a larger company.
- New features tend to be buggy in ways that tech teams are not accustomed to fixing
Started by Zenefits alumni, Rippling focuses on supporting organizations of all sizes to streamline HR and IT, and Finance busywork with one tool. Their payroll offering, while adjacent to their broader HR tool, has grown to be able to handle international scenarios of many kinds.
As a US-based startup, a Canada-focused product was always in the cards for Rippling. While you can now use Rippling to pay people in hundreds of countries, the northernmost country in North America gets a tailored offering. You can hire Canadian employees in as little as 90 seconds, pay people in Canadian Dollars, and handle all related documents in English or Canadian French.
We’ve been well acquainted with the tool since around 2018, and we’ve had the chance to demo it and even use it as HR professionals several times since. One thing that has always stood out is the sleek design, great user interface, no-stress loading times, and great customer service.
Rippling’s pricing starts at $8 per month per user and will vary depending on which modules you’d like to use (or if you want the whole platform) and for how many people.
Best For
ADP
Besides payroll, ADP Workforce provides other HR add-ons and tools that are available when you need them and sync seamlessly between each other.
PROS
CONS
ADP is a trusted platform for just about anything HR, with over 70 years of experience (since 1949). They provide HCM solutions in anything related to employee management, talent management, payroll, etc. Due to their global reach, they offer payroll services both locally (within Canada) and internationally.
ADP is an all-in-one, easy-to-use system for just about any business with any number of employees. This is evident in their payroll packages designed according to business size.
With ADP Workforce, you can either get the Essential package, Enhanced package, Complete package, and the HR Pro - each with varying tools and add-ons of course. And if you feel the need to upgrade, you can easily switch between these packages.
- Signature Aluminium Canada Inc.
- pt Healthcare Solutions Corps
- Intertape Polymer Group
ADP offers tailor-fitted prices for their services depending on the number of employees you have and the size of our business. They generally do not give out the prices on their packages outright, so you would have to request a quote to get an idea.
Best For
ADP is a good choice for just about any company of any size looking to get a quality payroll solution without compromising on the price.
I use ADP weekly to provide employees with resources they might need. It could be for a pay stub, to calculate how much they make in 2 weeks, or to check their right to work. I especially like the feature that links to e-verify. That has been very helpful to us. We also use ADP for benefits and open enrollment. I also often point employees or former employees to the tool for self-service options.
I like that our data sits in one place - makes it easier to find. I especially like the link to e-verify, that brings me peace of mind. I also enjoy the way the user experience is set up for the pay profile.
I was not a part of the organization when they decided to begin using ADP. My understanding is, we were using a PEO, and decided to move in-house utilizing the ADP tool. It's been great for payroll and for onboarding employees. I have used it for 2.5 years at this organization within HR, and as a user at other companies. ADP has been great for managing benefits, employee pay statements, etc. It is nice to have a system that employees can self-serve.
I am not sure if I am unaware or if we just haven't done this, but I wish ADP linked to our HRIS. It has been difficult to enter manual data and an integration would be helpful. Sometimes, I also feel like the user experience as a whole is a bit wonky. It is not always the most intuitive tool to use.
I have not really used other competitors, so I can't speak to this question.
Consider integrations with your HRIS and how that would work - how manual would your processes be? Ask yourself how open enrollment could benefit from this tool. Additionally, consider how employees would find the user experience. Consider which options you will utilize and how you will communicate about them. Also, talk to ADP about what their customer service setup will look like for your organization, what will the level of support be?
The e-verify feature has been a big one. It’s been great to have that functionality for our business.
I'd say a mid to large but imagine it is good for smaller organizations, too. Large-size organizations can benefit from having data in one place.
I am not sure smaller organizations could afford the tool and get the use they would need out of it.
Ceridian
Ceridian allows you access and audit payroll data anytime you want during the pay cycle.
PROS
CONS
Ceridian provides an innovative cloud-technology payroll and HR solution in their Dayforce platform. Dayforce makes it possible for you to manage all your HR and Payroll transactions in one single database.
Most users commend the flexibility of the system as it allows you to access and audit payroll data at any time during the pay cycle, allowing more time for reviews and a more accurate payroll documentation.
- The BlueMan Group
- Harley Davidson inc.
- Air Canada Jazz
Dayforce payroll tool starts at $10.00 per employee per month.
Best For
Ceridian Dayforce is a good option for small and medium-sized businesses (SMBs) looking to grow and will need the flexibility to opt for other HCM options in the future. It can also be used by large corporations.
We used Ceridian Dayforce for payroll, processing biweekly and off-cycle pay. We also used it as a time and attendance system for hourly employees. We used it to onboard new employees as well. It did work well to integrate several of our employee lifecycle processes into one software.
Ceridian allowed integration with several of our other vendors, including our background checks and our 401K provider. The platform is pretty user-friendly and easy to learn the basics. It is cloud-based so it's easy to use remotely.
My company was using Ceridian mainly for payroll. We wanted software that was cloud-based so could be used remotely. We also wanted to be able to integrate the software with some of our other vendors. My company used this for a couple years before switching to a different payroll/HRIS software.
It was a bit expensive for our smaller organization (less than 400 employees). It was not always easy to get through to a live person for customer support when we needed help. It took some trial and error to get our timekeeping set up correctly since some of our employees have shift differentials.
I prefer Paylocity's software, which we switched to after Ceridian. Ceridian was pretty expensive for our purposes, and customer service was difficult to reach.
I definitely think you should consider the price versus functionality for your organization. It has a lot of options, but will you use them all? Will it be worth the money? You should also consider their customer support and whether that will be a big issue for your organization. We did not need to contact customer support that often, but it was difficult to reach someone when we did need to.
They make continual small improvements. My company stopped using this, so I'm not sure what recent improvements they've made.
I think it would be good for larger clients who need more functionality and can afford a higher price point.
It was not as good for my smaller organization of less than 400 employees. We were small potatoes for them for customer service, and we felt that.
QuickBooks
Quickbooks is easy to use and it integrates with just about any other accounting, financial, and HR software.
PROS
CONS
Quickbooks is perhaps the most popular accounting software in the market, revered by many for its dedication to providing accounting software suites that help businesses manage clients, finance, and inventory. They also offer a comprehensive payroll solution to business organizations.
Intuit’s Quickbooks is characterized by its simplicity and friendly interface. Plus, they offer a 30-day free trial.
You pay a $20 monthly base subscription rate for Quickbooks payroll and $3 extra for each employee you add.
Best For
Small businesses that just want to get their payroll done without the bells and whistles of an HCM software suite.
I use Quickbooks for monthly invoicing, financial statements, and to keep track of account receivables. We don't currently have it integrated with other softwares, but are thinking about integrating it with our workforce planning software in the future if that is possible. In terms of workflow, I access Quickbooks at least once a week to load new invoices, match receipts, upload receipts from my phone, and download our monthly PnL report. We have a separate system that we put the PnL report in that helps us track our cash flow in a way that accounts for projections.
It is easy to use - the interface is intuitive. I like the app and the fact I can do receipt tracking on my phone. I like that I can easily give my employees a company card and have them forward receipts into Quickbooks.
We work with a CPA firm who helped us to integrate Quickbooks across our organization. We began using Quickbooks in 2018, when our firm had just under $60,000 in revenue a year. Today, we use Quickbooks to manage the company's $1.7M and growing annual budget. We used Quickbooks because we wanted to have accurate timely financial statements across the organization, track all of our expenses, and manage our businesses PnL easily. I've been the primary user for the past 5 years.
I wish that it had better cash flow capabilities - the current capabilities do not account for projections. I also wish that when adding users there was an option to add employees who just had employee cards who need to email receipts into Quickbooks instead of having to take up a user seat - right now we have some employees emailing receipts to a company user to forward them on because there is only five seats in our plan. I also wish Quickbooks integrated better with my bank - the bank connection is always breaking and needs to be updated.
I haven't used similar tools - before Quickbooks I did everything on a spreadsheet. I did choose Quickbooks because it came highly recommended from my CPA firm.
People should think about their needs for financial reporting. People should also think about their needs for billing, and tracking employee expenses.
It works great for my consulting firm!
I think it will work for most people, but I can see it being a challenge for people who have always tracked receipts and expenses manually to shift.
Wagepoint
Wage point boasts a particularly intuitive design and user-friendly interface, great for the average user.
PROS
CONS
Wagepoint is a Canadian payroll software company founded in 2012. It has everything you need to pay your employees and contractors while staying compliant with payroll regulations.
This software was built with the small business owner in mind as it is evident in the simplistic design that can be operated by just about anybody.
- Quickbooks
- Xero
- Slack
The price for WagePoint’s payroll software is a monthly base fee of $20 and an additional $2 per employee.
Best For
Wagepoint works well for sole proprietors, startups, and any small business with less than 100 employees.
To pay employees. Complete any federal and provincial deductions. Send CRA what's needed. Offer employees a pay stub.
- Simple user interface.
- Inexpensive compared to others.
- Canadian company.
To pay employees in Canada. Wanted something easy to set up, quick to set up and inexpensive.
Doesn't integrate with much. Very limited functions. Barely any features. Bare bones. Poor customer service, there's no number to call. And, they charge for help.
Simple, limited features, cheap.
If you have more than 5 employees, I'd recommend picking another provider.
Individual entrepreneurs.
Larger organizations.
Payworks
Payworks makes it easy and seamless to switch from any payroll provider. Plus, it generates lots of customizable and shareable reports.
PROS
CONS
Payworks inc. is a Canadian company that provides total workforce management solutions, HR tools, and of course, cloud-based payroll for Canadian organizations. Established in 2000, they have since made a name for themselves as Canada’s trusted payroll solution provider.
Payworks especially stands out for its excellent understanding of Canadian tax laws. Unlike most small business payroll solutions, Payworks also processes Quebec payroll. Making it an excellent choice for any Canadian business.
- Meridian Farm Market
- Standard Motors
- Oxford Learning Centre
- Statoil Canada
The price for Payworks’ payroll software is a monthly base fee of $20.90 and an additional $2 per employee.
Best For
Small businesses, corporations, and franchises especially.
Wave Payroll
It is very affordable, easy to use, and its accounting software is free to use as an add-on.
PROS
CONS
A subsidiary of Wave Financial, Wave Payroll is a management solution designed to simplify and automate payroll processes. It is primarily built for payroll but you can connect the software to the Wave accounting platform for heavy-duty accounting such as invoicing and receipt management.
Wave payroll costs a $20 base fee per month and an additional $6 per active employee or independent contractor paid. Also, you get a 30-day free trial with Wave Payroll.
Best For
Freelancers, small businesses, and sole proprietorships with very few employees (<50).
Humi
Humi lets HR managers improve benefits administration by centralizing information about benefits cards, health spends, employee profiles, and multi-level plans on a single platform.
PROS
CONS
Humi is designed to help small to medium-sized businesses (SMBs) automate payroll and HR tasks. A peculiar feature of Humi is that you get your HR and payroll in one place, thereby eliminating dual entry.
The fully integrated system is easy to use and can literally run payroll in just three clicks.
To get the price of their payroll package, you will have to reach out to get a quote as they do not disclose their prices.
Best For
Canadian SMBs with 5 to 500 employees
Knit People
It is 100% Canadian and you can set up the platform to run your payroll on autopilot.
PROS
CONS
Knit people is a Canadian payroll software company that provides simplistic HR and payroll solutions for small and medium-sized businesses. Being 100% Canadian, Knit keeps up-to-date on tax and employment legislation in Canada, thereby helping you stay compliant with strict tax legislation in places like Ontario and Quebec.
Unlike other systems, this Canadian payroll software performs some complex operations that are peculiar to Canadian businesses like WSIB reporting, ROE filing, and employee health tax (EHT) remuneration for companies that are in Ontario or have employees that reside in the province.
The software is also easy to set up and it features a very simple user interface.
Knit people’s payroll software goes for a flat rate of $39.00 per feature per month.
Best For
Startups, small and medium-sized businesses, as well as accountants that manage payroll for their clients.
Rise People
Excellent customer support.
PROS
CONS
Rise people is also a 100% Canadian payroll software company. Though relatively young in the industry, they have made a tremendous impact and have helped many Canadian businesses manage employee engagement and payroll.
The software is easy to use and everything is laid out perfectly so you can customize your screen to suit your preferences.
- Timecode Lab
- Annex Pro
- Crohn’s and Colitis Canada
- CF Canadian Financial
You will need to contact Rise People to get a quote on their packages. For small businesses that have less than 20 employees and just want to run payroll, you can get Rise Lite for free.
Best For
Small and medium-sized businesses in Canada that want HER together with their payroll, but do not want the hefty and expensive packages Ceridian and ADP provide.
Push Operations
Push Operations offer an integrated solution with all your operations (payroll, time tracking, etc., in one tidy interface).
PROS
- Seamless integration with POS systems
- Proactively prevents break violations with timely alerts for enhanced compliance
- Tailored reporting options to extract precise insights for informed decision-making
- POS system integration
- Eliminate break violations through proactive alerts
- Customized reporting
CONS
- Some of the users we consulted raised concerns about the intuitiveness of the interface, prolonged loading times, and occasional unexpected logouts from the platform.
- Some users have reported issues like a confusing interface, long loading times, and the platform logging out randomly.
Push operations provide a fully integrated solution that allows you to utilize data from scheduling, time tracking, and other HR applications in your payroll activities.
They offer robust features that are ideal for Canadian businesses of any type. However, due to their integrated functionality, they are specifically good for businesses with hourly employees. Note that Push Operations only offer payroll as an add-on. They are more of an HR product that caters to the needs of small Canadian businesses.
Push Operations has three base plans - Starter, Pro, and Premium. The Starter plan costs $4 per employee per month, Pro costs $5 per employee per month, and Premium costs $8 per employee per month. To get payroll as an add-on, you have to pay an additional $6 per employee per month with any of these plans.
Best For
Businesses that have hourly employees and multi-locational businesses with 50 employees or more.
Canadian Payroll Software Use Cases
Earlier on we mentioned that it is important to pay attention to the software you choose to run your payroll, hence the review of the payroll vendors above. However, we never really mentioned the general manner in which these payroll systems can be useful. Here are some use cases for a typical Canadian payroll software:
- Recruiting support: Payroll systems can help in the recruiting process by providing support like background checks to improve your chances of making a good hire.
- Business management: Most, if not all, Canadian payroll software offer reporting and analytics which can provide insights that can be crucial in key business decision-making.
- Onboarding: Some Canadian payroll systems offer onboarding tools to help new hires acclimate with their new work environment.
- Human capital management: Payroll software makes gathering employee data (personal, banking, financial, tax, etc.) much easier and well-coordinated.
Pitfalls To Avoid When Buying Payroll Software for Canada
The main pitfall you need to be aware of in Canadian payroll software is the inability to process multi-provincial payroll. Many times, employers get into business with a payroll vendor only to find out they cannot run Quebec or Ontario payroll. The tax laws in these regions are strict and they change a lot. Only a few established payroll vendors like Ceridian and ADP, or fully Canadian vendors like Knit and Rise people have the resources to keep track of these changing laws in order to stay compliant.
For employees based outside of Canada, employer of record companies are a convenient solution.
Benefits and ROI of Using Canada-Specific Payroll Software
Payroll is a very complicated and exhausting process. It is even more complex in Canada, where the premiums and insurances to be deducted differ from province to province. If you resort to outsourcing your payroll, you should be ready to pay up to $200 per employee per year.
Using payroll software and potentially employing the services of a professional employer organization can make a world of difference in your finances. Contrary to the $200 you have to pay per employee, a typical payroll software vendor will charge you, at most, $10 per employee per month. Totalling $120 per employee per year.
Payroll systems also save you time. Quickbooks, for example, can save you up to 40 hours per month. Calculating these man-hours, you will be saving a lot of money that can be recycled into the business. Still on Quickbook, because it saves users up to 40 hours per month, you can potentially save $3,000 in tax savings. The same goes for other payroll software that is equally efficient.
Furthermore, payroll systems are constantly up-to-date with local and international laws on payroll and taxes. This protects users from lawsuits and fines resulting from non-compliance.
Besides, as you keep expanding, you would want to conduct your payroll operations in-house and that is possible with the right payroll software. All in all, the right payroll systems can be a great investment in the short and long run.
Canadian Payroll Software Pricing Models
When it comes to Canadian payroll software, there are two major pricing models, and most times, vendors prefer to combine both models. So what are these two pricing models you ask?
- Flat rate: In this pricing model, vendors charge you a fixed price per month or annually, depending on which you prefer. If you are going to be using vendors that charge a fixed rate, it is best you choose the annual plan because it always comes with a discount. And it is worth it in the long run.
The good thing about this model is that you can run payroll for as many employees as you want without paying a dime extra. You can also bring in new hires without having to worry about incurring additional costs. This pricing model is fit for small businesses looking to grow and expand. - Per employee per month: This model is self-explanatory and just a few Canadian Payroll Software vendors offer this type of pricing model solely. Usually, this model comes with a fixed base price you need to pay per month, then an additional amount for the number of employees you choose to run their payroll. This model is fit for businesses that have a lot of contracted employees.
Key Features You Should Look Out For in Canadian Payroll Software
There are several payroll management systems in the market, each with its defining features and attributes. As an employer, human resource manager, or payroll officer, it is imperative you choose one that specifically addresses the needs of your business. In doing so, however, you must look out for these features in any Canadian payroll software you choose:
Compliance
One thing about Canada is that the law changes as you move from province to province, especially tax laws. For example, it is compulsory for employers to pay what is known as the employee health tax (EHT) in Ontario and British Columbia. This is not the case in other provinces. Whatever Canadian payroll software you choose, it must have an adept understanding of Canada’s provincial tax laws.
Tax Management
This is perhaps one of the most important features you should look out for. Your Canadian payroll software must be able to remit monthly, quarterly, or bi-monthly (depending on your preference) tax deductions to the appropriate agencies - the REVENU Quebec for the province of Quebec, and the Canadian Revenue Agency (CRA) for other provinces in Canada. The software must be able to calculate and deduct the three basic tax remittances accurately and according to recent rates. These deductions include income tax, the Canada Pension Plan (CPP) contributions, and employment insurance(EI) premiums.
Direct Deposit
The whole point of having a payroll management solution is so you can pay your employees on time and with ease while staying compliant. A direct deposit option eliminates the stress of going to cash a cheque in a bank, and you also save time and money by avoiding printing paychecks.
Reporting
Your Canadian payroll software should be able to generate important reports when you need them. Reports like pre-post payroll journal, pay run audit report, cash requirement reports, and so on, ensure your pay run is error-free. Reports and analytics also provide insight into the financial aspects of the business.
Demo Questions to ask Your Canadian Payroll Software Providers
Payroll software vendors usually provide demos so you can get acquainted with their system before you commit. We recommend you schedule demos with several payroll vendors to arrive at the one that best suits your business and preferences. We have curated some questions you can ask during this process:
- How much does your service cost for my business (number of employees)
- Does your software allow for multiple users?
- What additional service do you provide?
- How will the pricing change when I want to scale?
- Can your system generate a record of employment (ROE)?
- Can my employees view their pay statements and T4's online?
- Does your system integrate with other business management tools? If so, what are they?
- How much control do I have over the payroll process?
- Does your software automatically submit my CRA, WCB, or WSIB remittances?
- Do you handle Alberta and Quebec payroll?
- Do you handle international payroll?
- What are the measures you have put in place to ensure you stay on top of Canada’s changing tax laws?
- Does your software automatically upload the EFT file (Electronic Funds Transfer) to my company's bank?
- What are your payment options?
- What metrics have you used to prove the effectiveness of your solution, and where can I see these in my analytics dashboard?
- Does your software allow for mid-month advances or special pay runs?
- Besides Canada Pension Plan (CPP) contributions and Employee Insurance (EI) premiums, what other premiums, deductions, and contributions do you remit?
Implementation: How do You Get Started With the Best Canadian Payroll Software?
We have mentioned 10 different payroll systems in this review and all of them have their unique interface and functionality. No matter the differences, setting up and running with these Canadian payroll solutions typically follows the same procedure:
- Set up: The first thing you want to do with your payroll software is to set it up to run per your business policies. Policies around holidays (paid or not), general benefits (like accommodation, etc) should be inputted in the system so when the payroll is to be run, these policies will take effect. The setup stage also involves you inputting your business information (business name, location, business number, etc) into the system.
- Add Employees: The next thing you want to do is add employees. Most systems allow you to add employees to tabs where you can fill in all their necessary information and allocate a monthly salary. While filling the employee tabs, you will be required to collect their TD1 forms and add their tax codes.
- Run Payroll: After setting up your system and adding your employees, the next step is to pay them. Some payroll software can automate this process - all you have to do is input the pay frequency and necessary tax information, and the system will run the calculations, deduct the taxes, and pay the employee the net salary after all the deductions. We, however, advise you to manually control some aspects of this process. For example, when an employee has reached the maximum Canadian Pension Plan (CPP) annual contribution before the year runs out, you can “uncheck” this deduction to avoid inaccurate tax remittance which, in turn, affects the employee’s pay and payroll data.
- Make Remittance: Most Canadian payroll software will automatically calculate and deduct remittances from the wages you paid your employees. Some go a step further by actually filing and submitting these remittances to the CRA or REVENU Quebec, depending on your province.
- File T4s/ T4As/ Releve 1s: At the end of the year, your payroll software will file your end-of-year summaries and distribute them to your employees.
In most payroll software, customer success representatives, who are Canadian payroll experts, help with the aforementioned procedures. If you are a new business set up in Canada or perhaps you simply need help navigating the turbulent waters that are business payroll, you shouldn’t have any problems.
Others are self-service putting you solely in charge. Again, these payroll software vendors are here to serve your specific needs. Whatever your preference, there is always a solution for you.
FAQs
What is payroll software?
Payroll software is a cloud-based solution that provides automated payments to employees of a business organization. Payroll software helps with anything from filing taxes, generating reports, storing data, and so on.
Why is Quebec’s payroll different from other provinces?
Canada’s system of government allows for different provinces to enact their own statutory laws.
Unlike other provinces where you have to pay Canada Pension Plan (CPP), in Quebec, employees pay the Quebec Pension Plan (QPP) and this differs in rates.
Moreover, while you submit remittances to the Canada Revenue Service (CRA) in other provinces, you submit to REVENU Quebec in the province of Quebec.
What is the best Canadian payroll software for small businesses?
All the payroll software companies we mentioned here, such as Push Operations, Humi, Intuit, and Ceridian Dayforce, are great bets for most Canadian companies. For small businesses processing payroll in Canada, the following are even better:
- WagePoint
- Payworks
- Wave Payroll
- Rise People
Last Advice About Buying Canadian Payroll Software
If you’ve made it this far, you will likely choose a payroll solution that fits your business perfectly. That being said, we recommend you always follow SSAFE - Security, Support, Affordability, Features, and Ease of use. Once all those are in place, you are very likely to end up with a good deal.
As a final word, if your business involves hiring a lot of remote employees outside Canada, you will want to be compliant with international legislation in their respective regions. Choosing one of the best international payroll companies to run your payroll is your best bet. You get to pay your employees with ease without having to worry about whether or not you are breaking any laws.
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