If you are paying anyone for services rendered, then yes, you must register for a payroll deductions account. It’s also a good idea to register for such an account even if you currently don’t have employees, but you’re fairly certain you will hire them.
Still confused? Here is a list of when you will have to register for a payroll deductions account, if you:
- pay salaries or wages;
- pay tips and gratuities;
- pay bonuses and vacation pay;
- provide benefits and allowances to employees; or
- need to deduct amounts, send those amounts to the Canada Revenue Agency, and report amounts from other types of remuneration (such as pension or superannuation).
The good news is, even if you don’t have a payroll program account yet, you most likely already have a business number. In that case, all you need to do is add a payroll program account to the BN you already have and you’re set. However, if you don't have a BN, you have to ask for one and register for a payroll program account, before your first remittance due date.
CRA: Do you need to register for a payroll program account?