Expert: Shirley McAllister, CPP, PHR - 5/7/2009

Question
If implementing and running a Canadian payroll from the US, what would be the first few questions to address to assure the Canadian entity that all will go well?

Answer
I would suggest that you contact ADP canada and set payroll up with them. They take care of all the taxes and remit your payments each payroll as well as printing the paychecks and sending them to the Canadian office. Their fees are reasonable.

If you are doing it yourself you will have to set accounts up for CPP (Canadian Pension Plan), EI (Employment Insurance ), Federal withholding and in some provinces provincial withholding and even medical withholding.

In Canada we provide a RRSP which is a pension plan similar to the 401K.

You also have to know which holidays are statutory holidays in the province you are located .

Their rules on maternity and sick leave are much different than ours in the U.S.

The vacation pay is mandatory and it is 4% for newer employees than 6% for those that stay for 5 years. This is a percentage of gross salary. They cannot lose vacation time and you are supposed to let them take it once a year. The employer does have the right to say when it may be taken.

Their laws are different than ours and if you are in Quebec it is like being in California in the U.S. the rules are specific to that province and not the same as other provinces.

I would high recommend you buy a membership in the Canadian Payroll Association and also that you take the Canadian Payroll Class offered by the American Payroll Association. The American Payroll association is at www.americanpayroll.org · The Canadian Payroll Association is at www.payroll.ca . ADP Canada is at www.adp.ca.

Shirley