Accounting technology / Glossary / Payroll software in Canada

Payroll software Canada: CPP, EI, remittances and T4s

Definition

Payroll software in Canada deducts Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums and income tax from each pay, adds the employer's share, remits the source deductions to the Canada Revenue Agency on the employer's remitter schedule and produces the year-end T4 slips and summary.

Also calledCanadian payroll softwarepayroll software for Canada

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Tax authority: CRA
CPP rate 2026: 5.95% each
T4 slips due: Last day of February

What payroll software in Canada has to handle

CPP for 2026: 5.95% each from employee and employer on pensionable earnings up to $74,600, after a $3,500 basic exemption, for a maximum of $4,230.45 each. CPP2 adds 4% on earnings between that ceiling and $85,000, up to $416 each. EI for 2026: the employee rate is 1.63% on insurable earnings up to $68,900, and the employer pays 1.4 times the employee premium; the Quebec employee rate is 1.30%. Remittances: the CRA sets the schedule by average monthly withholding amount (AMWA). Regular remitters pay by the 15th of the next month; eligible small employers pay quarterly by 15 April, 15 July, 15 October and 15 January; accelerated threshold 1 ($25,000 to $99,999.99) pays twice a month and threshold 2 ($100,000 or more) up to four times a month. Year-end: employees get T4 slips by the last day of February, and an employer filing more than 5 information returns must file electronically. Prices: Wagepoint Lite is $20 a month plus $4 per employee or contractor, Core $40 plus $6 and Plus $80 plus $10, with T4s, T4As and Records of Employment included. QuickBooks Payroll Canada sells Core, Premium and Elite plans and files source deductions and T4s.

Common questions

What does payroll software deduct in Canada?+

CPP and CPP2 contributions, EI premiums and income tax, plus the employer's matching CPP and its EI share at 1.4 times the employee premium.

How often do Canadian employers remit payroll deductions?+

It depends on the remitter type the CRA assigns. Regular remitters pay by the 15th of the next month, small employers can pay quarterly, and accelerated remitters pay two or four times a month.

What are the 2026 CPP and EI rates?+

CPP is 5.95% each for employee and employer up to $74,600, CPP2 is 4% up to $85,000, and the EI employee rate is 1.63% up to $68,900 of insurable earnings.

When are T4 slips due?+

Employees must get their T4 slips by the last day of February after the calendar year. Employers filing more than 5 information returns must file electronically.