Managed payroll services involve outsourcing payroll processing to a third-party provider. This service handles all aspects of payroll management, including calculating employee wages, filing payroll taxes, and ensuring compliance with labor laws. It helps businesses focus on core activities while ensuring that their payroll is accurate, compliant, and timely.

A payroll system in Canada is a software solution or service that manages the process of paying employees. It ensures that wages are calculated correctly, taxes are withheld, and deductions (like EI, CPP, and income tax) are made in compliance with Canadian laws.

To process payroll in Canada, the following information is required:

• Employee details (name, SIN, address)
• Salary or hourly rate
• Employment status (full-time, part-time)
• Tax withholding information (TD1 forms)
• Deductions (e.g., CPP, EI)
• Hours worked, vacation pay, and overtime (if applicable).

A payroll management system automates the entire payroll process. It calculates employee wages based on hours worked or salary, applies appropriate taxes and deductions, and generates payslips. The system also manages tax filings, direct deposit transfers, and ensures compliance with labor laws.

The key differences between US and Canadian payroll include:

• Tax structure: In Canada, payroll includes CPP (Canada Pension Plan) and EI (Employment Insurance) deductions, whereas in the US, there’s Social Security and Medicare.
• Federal vs. provincial: In Canada, taxes and labor laws vary between provinces, while in the US, laws differ between states.
• Health benefits: US employers may deduct for health insurance premiums, while in Canada, healthcare is largely government-funded.

Both employers and employees share the responsibility for payroll taxes in Canada. Employers must deduct and remit income tax, CPP, and EI premiums from employees’ wages. Employers are also responsible for matching CPP contributions and contributing to EI.

Payroll taxes in Canada consist of:

• CPP (Canada Pension Plan): Employers and employees contribute 5.95% each on earnings up to a maximum annual amount.
• EI (Employment Insurance): Employees contribute 1.66% on earnings, while employers contribute 2.32% of the same.

Canadian payroll works by ensuring that employee wages are calculated based on work hours or salary, and appropriate deductions (income tax, CPP, EI) are made. Employers are required to remit these deductions to the Canada Revenue Agency (CRA) and file necessary reports.

Aperio is HRWARE’s cloud-based HR management system designed to streamline payroll, time tracking, and performance management. It helps businesses automate HR processes, reduce administrative tasks, and ensure compliance with Canadian labor laws.

HRWARE’s payroll system stays updated with the latest Canadian tax laws and regulations, ensuring that all calculations and deductions comply with the CRA’s standards. The system automatically adjusts to changes in rates for CPP, EI, and income tax.

Yes, HRWARE’s payroll solution integrates seamlessly with other HR, accounting, and time-tracking systems, allowing for a unified approach to managing employee data and finances.