2017-12-05 00:00:00 Payroll English Get your business number and payroll program account number from the CRA to make payments on your workers' withheld taxes. https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/12/accountant-remits-deductions-in-payroll-program.jpg https://quickbooks.intuit.com/ca/resources/payroll/open-payroll-program-account-remit-deductions/ Open a Payroll Program Account to Remit Deductions

Open a Payroll Program Account to Remit Deductions

1 min read

If you run a normal Canadian business, or you are an executive or trustee of some other organization with employees, you are required to withhold a certain amount of money from each employee’s paycheck for various taxes. Those taxes must then be paid or remitted, if you want to sound fancy to the Canada Revenue Agency. To get credit for making the necessary payments, the CRA needs some way to identify your company, and that’s where opening a payroll program account comes in.

A payroll program account (PPA) is just an account with the government and a serial number that tells the CRA who you are and what you owe in withheld employee taxes. This is vital for accurate assessment of taxes due, and it also ensures you get full credit for payments you owe. Remitted money can be assigned to your company’s unique PPA number, which usually satisfies the CRA.

To open a PPA, you need a business number (BN). These are assigned by the CRA, and almost all businesses already have one. If you don’t have a BN yet, don’t worry you can ask for one at the same time you’re setting up your PPA. To get either (or both), visit the CRA’s website and download Form RC-1. Fill this out and mail or fax it back to the CRA. Alternatively, if your company meets eligibility requirements, you can probably file your RC-1 online. After you’re done, the CRA mails you an official confirmation of your account and you can get started making payments right away.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

Ultimate Canadian Payroll Guide for Small Businesses

Understanding business is tough enough, but as the rules begin to pile…

Read more

You're Still Not Using Payroll Direct Deposit?

Using payroll direct deposit to pay staff wages benefits your small business…

Read more

What's Better for Your Small Business: Weekly, Bi-Weekly or Monthly Payroll?

Hiring employees is a sign of growth, but it also comes with…

Read more