Hiring your first employee is a milestone — and a compliance moment. Before that first paycheque goes out, there's a short list of things the CRA (and your province) expect you to have in place. Here's the 2025 checklist.
You need a payroll (RP) program account under your business number before you can remit source deductions. If you're not incorporated yet, see our business number guide.
Every new employee completes federal and provincial TD1 forms so you know how much tax to withhold. Wrong TD1 codes are the top cause of withholding errors.
From each paycheque you withhold CPP, EI, and income tax, add the employer CPP/EI, and remit to the CRA. Calculate it with our payroll calculator and learn the math in our payroll deductions guide.
Most Alberta employers must register with WCB Alberta and pay premiums based on payroll and industry. Check your obligation when you hire.
| Task | Why |
|---|---|
| Pay-period schedule | Determines remittance timing |
| Record of pay & deductions | Required by CRA; basis for T4s |
| ROE on departure | Record of Employment for EI |
| T4 by end of February | Annual reporting |
If you're thinking of paying them as a contractor to skip payroll, read employee vs contractor first — misclassification is costly.
Swift sets up payroll for first-time Calgary employers end to end. See our payroll services or book a call.
Open a CRA payroll (RP) account, collect federal and provincial TD1 forms, set up source deductions (CPP, EI, income tax), register for workers' compensation if required, and establish a pay schedule and recordkeeping. You must remit deductions to the CRA on schedule and issue a T4 by the end of February.
Yes. You must open a payroll (RP) program account under your business number with the CRA before paying employees, so you can withhold and remit source deductions. You cannot legally run payroll without it.
Most Alberta employers must register with WCB Alberta within a set period of hiring and pay premiums based on payroll and industry classification. A few industries are exempt, so confirm your obligation when you hire.
Only if the relationship is genuinely independent under the CRA's control, tools, and risk tests. Treating a true employee as a contractor to avoid payroll can lead to reassessed CPP and EI plus penalties, so review the classification carefully first.
Have questions about payroll? Swift Accounting Ltd. helps Calgary business owners get it right. Contact us for a free consultation.
