Hiring is exciting right up until the first remittance deadline. Payroll in British Columbia has four moving parts, and missing any one of them creates penalties that dwarf the cost of doing it properly.
1. Open a payroll program account
Before the first payday you need an RP payroll account attached to your business number. Registration is quick, but remittance deadlines start immediately once the account exists.
New employers are usually regular remitters: source deductions are due by the 15th of the month following the pay.
2. Withhold and remit the right deductions
Every paycheque requires income tax, CPP contributions, and EI premiums to be withheld, plus the employer's own CPP match and 1.4× EI share.
The withheld amounts are held in trust. CRA treats unremitted source deductions far more aggressively than ordinary corporate debt, and directors can be held personally liable.
3. Get BC employment standards right
BC requires vacation pay of at least 4% of gross wages, rising to 6% after five years of service. Statutory holiday pay is calculated on the average day's pay over the 30 calendar days before the holiday.
Accrue vacation pay as a liability every pay period rather than treating it as a surprise expense when someone takes time off.
4. Register with WorkSafeBC
Most BC employers must register with WorkSafeBC within 10 days of hiring and pay premiums based on their classification unit and payroll.
Contractors are not an escape route. If you control how, when, and where the work is done, CRA and WorkSafeBC will likely treat the person as an employee regardless of the contract.
Automate before you scale
A payroll platform that calculates deductions, files remittances, and issues T4s costs less per month than a single late-remittance penalty. Set it up before employee number two, not after.
Want this handled for your business?
North Pacific CPA runs bookkeeping, payroll, and year-end for owner-managed companies in Vancouver. Book a 30-minute discovery call and we'll map out what your books need.
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