Canadian Payroll Basics for Bookkeepers and Entrepreneurs

Understand how federal and provincial td1 forms shape payroll deductions in Canada’s progressive tax system and guide the zero-tax purple section.

Understand how TD1 forms affect tax withholdings, default to the basic personal amount when incomplete, and set extra withholdings to cover side income (Ontario basic amount 12,747).

Explore CPP and EI calculations for 2025, including rates, maximum contributions, and year-to-date tracking, with practical examples for payroll tracking and year-end remittance.

understand how Canadian vacation pay works: a 4% add-on to gross earnings, accrued or paid with each paycheck, tenure-based increases to 6% and 8%, and province-specific rules.

Explore how payroll is tracked in bookkeeping by recording earnings as payroll expenses, deductions to payroll taxes payable, and CPP/EI contributions, with notes on paycheck dates and GL accounts.

Learn how to manually enter a paycheck in QuickBooks Online with a check entry, detailing wages, payroll taxes payable, and company portions without using the payroll module for troubleshooting.

Learn to record third-party payroll app transactions (Ceridian, ADP) with the cash method, including deductions, fees, HST, and use a payroll clearing account and journal entries.

Explore how native payroll modules record entries into the bookkeeping general ledger via the transaction journal, showing wages, vacation pay, and payroll liabilities.

Select a middle path method to record WSIB and CIB entries, billing monthly and marking remittance to ensure accurate expense timing and liability tracking.

Compare payroll software and services, considering lead times, Roe and T4 handling, payroll taxes, and HR features to choose the best solution for your growing canadian business.