Chapter 1: Introduction to Canadian Payroll
1.1 Overview
In this chapter, you will get a sense of what payroll is and why knowledge of payroll processes is important. Knowledge of payroll will be relevant to you if you are seeking a career in payroll or human resources, if you are an entrepreneur, or if you are a member of the employed workforce. This chapter will give you an overview of payroll, including an outline of the responsibilities of the payroll function.
This chapter will also outline the steps and processes involved when you set up payroll for an organization and when onboarding new employees. The organization will have to register for a payroll account with the Canada Revenue Agency (CRA) and decide whether the organization should process payroll manually, use payroll software, or outsource payroll functions. With respect to onboarding new employees, this chapter discusses the requirement for organizations to obtain Social Insurance Numbers (SINs) for new employees, set up new employees in the organization’s payroll system, and verify their rates of pay.
Note that this text is a Canadian resource that draws upon Canadian laws and policies in Canadian common-law jurisdictions. Although many of the principles may apply in Québec or outside Canada, please refer to jurisdiction-specific resources for payroll in Québec and jurisdictions outside Canada.
Specific Learning Outcomes
Upon successful completion of this chapter, you will be able to
- Outline the importance of payroll to an organization
- Explain the responsibilities of an organization’s payroll department
- Specify the processes involved in setting up payroll
- Determine whether an organization should complete payroll manually, use payroll software, or outsource payroll functions
Image Credit
Student working on a computer by Meena Gupta, NorQuest College, CC BY-SA 4.0
