6. Calculate pay and make deductions and remittances
As a trained accountant, you should already be quite familiar with payroll accounting and journal entries, as well as the necessary payroll deductions and remittances. That being said, it’s always a good idea to brush up on this knowledge to ensure all deductions are made correctly. You should also familiarize yourself with the Canadian overtime rules to ensure all government laws and regulations are followed.
You will need to keep a detailed record of the various benefits and pension contributions your small business clients are making as employers, as well as the employee contributions themselves. This includes all CPP contributions, employment insurance (EI), and supplementary benefits such as health insurance, life insurance, pension plans, and of course, payroll taxes.
It is important to note that you will also need to include any further contributions the client’s employees are opting into regarding supplementary benefits, such as RRSP contributions. Typically, they will provide written confirmation of these contributions- as only some employees might make these larger contributions compared to other employees that might only use the government-mandated pension plan.
Once you understand all deductions needed per client and employee, you can calculate each individual’s gross pay and make the necessary adjustments.