Setting up a payroll account with the Canada Revenue Agency (CRA) is required as soon as you start withholding income tax, Canada Pension Plan (CPP) or Employment Insurance (EI) from an employee. This article gives a concise pre-registration checklist, an ordered online registration walkthrough, a clear explanation of the 15-character payroll deductions account number, what to expect for remittances and T4 reporting, and practical notes on connecting payroll software or hiring an accountant to handle the work.
Do you need a payroll deductions account?
You must register for a payroll deductions account if you are an employer, a trustee, or a payer of amounts related to employment. Register before your first remittance due date. That date is generally the 15th day of the month following the month in which you began withholding deductions, unless the CRA assigns a different remittance frequency based on your payroll size or other criteria. Confirm your situation on the CRA site so you meet deadlines and avoid penalties.
CRA: Determine if you need to register
What to gather before you start
Collect these items before beginning registration. A complete submission reduces follow-up requests and speeds setup.
- Legal business name, any operating name, structure (sole proprietor, partnership, corporation) and physical address.
- Your Business Number, if already assigned. If you do not have a BN, you can request one during registration.
- An estimated payroll start date and the expected number of employees. The CRA uses this to set remittance frequency.
- Contact details for the owner or authorized representative, including name, phone and email.
- Banking information for your payroll funding account, the account used to pay wages and remit statutory deductions.
- Authorization documents if someone else will register on your behalf, for example a signed letter or representative enrolment through CRA electronic services.
The CRA recommends its online services as the fastest way to register for a Business Number and a payroll deductions account. Preparing the items above avoids delays during the online flow.
CRA: Register online with Business Registration Online
Step-by-step: how to register a payroll account with the CRA
The fastest route is Business Registration Online. Below are ordered steps with checkpoint items so you can stop and verify at clear points.
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Start the Business Registration Online flow.
Open the CRA Business Registration Online page and choose to request a Business Number and add program accounts. If you already have a BN, select the option to add a payroll deductions account.
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Select the payroll program.
When prompted for program accounts, choose the payroll deductions program. The payroll program identifier is RP. If required, add GST/HST or other program accounts at the same time to avoid repeat registrations.
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Enter business and contact information.
Provide the legal name, operating name, address, phone, email and business structure. Confirm the owner or authorized representative who will receive notices.
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Provide payroll start date and employee estimate.
Enter a realistic payroll start date and the expected number of employees. The CRA uses this data to determine remittance frequency and account settings.
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Review and submit.
Double-check entries. Submit the form and record any confirmation or reference numbers given at the end of the session. Save a screenshot or PDF of the confirmation for your records.
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Record your payroll account identifier.
The CRA returns a payroll deductions account number made of your nine-digit Business Number, the program identifier RP, and a four-digit reference, forming a 15-character identifier. Use that exact identifier for remittances and year-end filings.
If you prefer not to use the online service, the CRA documents telephone and mail alternatives and explains how to modify or close accounts. Expect to follow any verification steps the CRA requests before the account is fully active.
Step-by-step subcheckpoints
- Select the payroll deductions program (RP) explicitly when asked for program accounts.
- Provide a payroll start date that matches the first pay or the date you will begin withholding deductions.
- If you begin withholding before registration completes, remit on time and notify the CRA immediately to avoid late penalties.
- Keep the CRA confirmation number and a copy of the registration confirmation in your records for audit readiness.
How to read your payroll deductions account number
The payroll deductions account number is a 15-character code. It contains a nine-digit Business Number, the two-letter program identifier RP for payroll deductions, and a four-digit reference number. For example, BN 123456789 RP 0001 is the usual format. You must use this identifier when remitting payroll deductions, filing T4 slips and when communicating with the CRA about the account.
CRA: What is a payroll deductions account
After registration: remittances, T4s and account changes
Your first remittance due date is usually the 15th day of the month following the month in which you started withholding payroll deductions. The CRA may set a different remittance frequency depending on payroll volume. Pay attention to any CRA notices that confirm your remittance schedule so you remit by the correct dates and avoid interest or penalties.
At year end you must prepare T4 slips for each employee and file totals with the CRA using your payroll deductions account identifier. The CRA website explains how to change banking or contact information, update account details, and how to close a payroll account if you stop having employees.
CRA: Open or manage a payroll account
Remittance timing and year-end reporting details
- First remittance due date: typically the 15th of the month after you begin withholding payroll deductions, unless the CRA assigns another schedule.
- Remittance frequency may be monthly, quarterly or accelerated, depending on payroll size and CRA assessment.
- T4 slips and a T4 summary are required at year end for all employees. Use your 15-character payroll account identifier on filings and remittances.
Connecting payroll software and your funding account
Once you have your CRA payroll account, configure payroll software to match CRA remittance schedules and tax settings. Typical setup tasks include selecting pay schedules, entering taxable benefits and deductions, and configuring tax tables so remittances are captured correctly. QuickBooks and other vendors provide step-by-step guides for these settings.
Your payroll funding account is the bank account used to pay employees and statutory remittances. Platforms such as Wave require you to add a funding account before running payroll. Follow your payroll provider's verification steps to ensure payments and remittances flow as expected.
QuickBooks: Payroll preferences and tax setup
Wave: Add a payroll funding account
DIY registration versus hiring an accountant
Choose based on your time, comfort with CRA forms, and payroll complexity. A DIY registration is straightforward for simple payrolls limited to one province and a few employees. Engage an accountant if you have multi-provincial employees, contractor classification questions, taxable benefits, or a desire for a hands-off setup and ongoing remittance processing.
Verma Accounting provides payroll account setup, payroll processing, T4 preparation and ongoing compliance support. The firm can also configure your payroll software and connect the funding account so payroll runs smoothly from day one. Discuss scope and pricing in a free consultation to set expectations for timelines and deliverables.
Learn about payroll services with Verma Accounting
What an accountant will handle and common objections
- Register or obtain a Business Number and add the payroll deductions program with the CRA.
- Configure payroll software with pay schedules, tax setup and deduction rules to align remittances with CRA requirements.
- Connect or advise on the payroll funding bank account and verify payment flows.
- Process remittances and prepare T4 slips at year end if engaged to perform payroll operations.
Common concerns include security, cost and speed. Reputable accountants use encrypted, cloud-based systems and signed engagement terms. They can often complete registration and software configuration faster than a first-time DIY attempt. Ask about data security, timelines and fixed fees during an initial consultation.
Payroll account setup in Ontario and Ottawa: practical notes
CRA payroll account setup is a federal process and the steps are the same across Canada. For Ontario and Ottawa businesses, local value from an accountant can include awareness of provincial payroll considerations, such as Ontario-specific payroll taxes or reporting nuances when they apply. Verma Accounting offers remote, cloud-based registration and configuration while providing local knowledge for Ontario clients.
If you prefer a hands-off experience, an accountant can register your payroll account, confirm remittance frequency with the CRA, configure payroll software and connect the funding account to make payroll operational from day one.
Frequently asked questions
If workers are truly independent contractors and not employees, you generally do not register for a payroll deductions account for their payments. Employment status depends on the facts of the working relationship. Use the CRA guidance on payroll and employee status to confirm whether registration is required.
Your first remittance due date is usually the 15th day of the month following the month in which you began withholding payroll deductions. The CRA may require a different remittance frequency in certain cases, so follow the notice you receive after registration.
If you register online through the CRA electronic services, you typically receive confirmation and your payroll account identifier during or shortly after the session. Telephone or mail registrations may take longer. Check the CRA registration pages for current processing expectations.
Yes. An authorized representative can register for you if you provide proper authorization or enrol the representative through CRA electronic services. The CRA explains representative access and the documentation required for third-party registration.
The payroll account number contains a nine-digit Business Number, the two-letter program identifier RP, and a four-digit reference number. Use this 15-character identifier when remitting payroll deductions, filing T4 slips and when communicating with the CRA about the payroll account.
Next step
If you want help registering your CRA payroll deductions account, configuring payroll software and connecting a funding account, Verma Accounting & Financial Services can complete the setup and provide ongoing payroll support. Book a free consultation on the Verma Accounting website to get started.
Verma Accounting & Financial Services
Ready to register your payroll deductions account with the CRA?