CRA Payroll Account Setup: A Guide for BC Employers

Getting your CRA payroll account set up correctly before your first paycheck goes out is one of the most important steps you’ll take as a new employer in British Columbia. The process starts with confirming you have a Business Number (BN) from the Canada Revenue Agency, then registering for a payroll (RP) program account through one of three official channels. Once registered, you’re responsible for deducting Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and federal and provincial income tax from every employee’s pay, then remitting those amounts to the CRA on schedule.

Here’s what you need to have ready before you register:

• Your Business Number (BN): If you don’t have one yet, you’ll get it automatically when you register for your first CRA program account.
• Legal business name and address: Exactly as registered with the province or CRA.
• Contact information: Phone number and mailing address for your business.
• Expected first payroll date: The CRA uses this to set your remittance schedule.
• Estimated annual payroll: This determines your remitter type and deadline frequency.
• Type of business and industry: Required for CRA classification purposes.

Pro Tip: Gather all of this information before you start the registration process. Having it on hand means you can complete the CRA payroll account setup in a single session without delays.

Table of Contents

• Does your business actually need a CRA payroll account?
• How do you register for a CRA payroll account?
• What’s the difference between RP0001 and RP0002?
• What are the remittance deadlines you need to know?
• Tledgers handles payroll so you can focus on your business
• Key Takeaways

Does your business actually need a CRA payroll account?

Not every business needs a payroll account right away, but the threshold is lower than many new employers expect. You must register as soon as you pay your first employee or make your first payroll remittance. Waiting until your second or third payroll is a common mistake that can trigger penalties.

The key distinction the CRA draws is between employees and independent contractors. If you hire a contractor who invoices you for services, you generally don’t withhold payroll deductions or need a payroll account for that relationship. But if you hire someone as an employee, even part-time or seasonal, you’re an employer the moment that first paycheck is issued.

Here’s when you need to open a payroll account:

• You hire one or more employees, full-time, part-time, or casual.
• You pay wages, salaries, tips, bonuses, or taxable benefits to workers classified as employees.
• You’re a corporation paying a salary to a director or shareholder-employee.
• You take over an existing business that already has employees on payroll.
• You’re a non-resident employer paying Canadian-source employment income.

One area that trips up BC business owners specifically: if a worker’s status is ambiguous, the CRA can reclassify a contractor as an employee after the fact. That reclassification makes you responsible for all unremitted deductions, plus interest and penalties. When in doubt, confirm the worker’s status using the CRA’s guidelines before the first payment goes out.

How do you register for a CRA payroll account?

Online registration through CRA My Business Account or Business Registration Online (BRO) is the fastest option and gives you immediate account confirmation. Phone and mail are available if you prefer, but they take longer.

For the online route through CRA My Business Account, you’ll need to sign in using a CRA user ID and password, a Sign-In Partner (like your bank login), or a provincial credential. Once logged in, navigate to “Register a new business account” and select the RP payroll program. The portal walks you through each field and confirms your new account number on screen.

For phone registration, have your BN, legal business name, address, and expected first payroll date ready before you call. The CRA agent will create your RP account during the call and provide your account number verbally.

Form RC1 covers mail-in registration. Fill it out completely, sign it, and mail it to the CRA tax centre that serves your region. Because mail processing takes several weeks, this method only makes sense if your first payroll is still months away.

Pro Tip: Use the online portal whenever possible. It gives you instant confirmation, lets you view your account number immediately, and sets you up to manage remittances and filings through the same portal going forward.

What’s the difference between RP0001 and RP0002?

Your payroll program account number follows a standard format: your nine-digit Business Number, followed by the letters “RP,” followed by a four-digit reference number. Most employers start with RP0001. That’s the default account for remitting payroll deductions at standard EI rates.

RP0002 is a separate account used specifically by employers who qualify for a reduced EI employer premium rate. This reduced rate applies when an employer offers a short-term disability plan or similar wage-loss replacement plan that meets CRA’s criteria, resulting in a lower EI premium than the standard rate.

Here’s when multiple RP accounts come into play:

• RP0001: Standard account for all employers remitting CPP, EI at regular rates, and income tax.
• RP0002: Used when the CRA has approved a reduced EI rate for eligible employers with qualifying wage-loss replacement plans.
• Additional RP accounts: A business may open more than one payroll account if it has separate payroll operations, such as distinct divisions or locations that are managed independently.

Your payroll account number appears on any CRA correspondence related to your payroll program. You can also find it by logging into CRA My Business Account and viewing your registered accounts. When you file T4 slips at year-end, you’ll use the specific RP account number that corresponds to the payroll you’re reporting.

What are the remittance deadlines you need to know?

After your CRA payroll account setup is complete, remittance compliance becomes your ongoing responsibility. The CRA assigns you a remitter type based on your average monthly withholding amount, and that type determines how often you must send in deductions.

Remittance deadlines fall into three main categories:

• Regular remitters: Most new small businesses start here. Remittances are due by the 15th of the month following the month you made the deductions.
• Quarterly remitters: Available to small employers with a consistent history of low payroll and good compliance. Payments are due four times per year.
• Accelerated remitters: Required for larger employers with higher monthly withholdings. Deadlines fall more frequently, sometimes twice per month.

Late remittances carry penalties and interest. The CRA calculates penalties as a percentage of the amount owing, and the rate increases with repeated late payments. Even a single missed deadline can result in a penalty notice, so the due date matters as much as the amount.

You can submit remittances through CRA My Business Account, through your financial institution’s online banking using your payroll account number as the payment reference, or in person at a bank. The CRA does not accept cash remittances by mail.

Keeping accurate records of every payroll run, including gross wages, each deduction type, and the remittance amount sent, is a legal requirement. The CRA requires employers to retain these records for at least six years. If your account details change, such as ceasing to have employees or closing the business, you’re required to update or close your payroll account promptly to avoid ongoing filing obligations.

Pro Tip: Set a recurring calendar reminder two to three business days before each remittance due date. That buffer gives you time to confirm the payment amount and process the transfer without rushing.

Tledgers handles payroll so you can focus on your business

Registering a payroll account is just the beginning. Once your account is active, you’re responsible for calculating deductions accurately on every payroll run, remitting on time, filing T4s at year-end, and keeping records that can withstand a CRA audit. For many BC small business owners, that’s a significant time commitment on top of running the actual business.

Tledgers is a fully remote Canadian accounting firm that takes the entire payroll process off your plate, at a flat monthly rate with no surprise invoices. Their payroll services cover everything from initial CRA registration through ongoing remittance management and year-end T4 filing. If you want strategic financial oversight alongside payroll, their virtual CFO service pairs payroll compliance with cash flow planning and tax strategy. There’s no hourly billing and no ambiguity about what’s included. Reach out to Tledgers to get your payroll set up correctly from day one.

Key Takeaways

Completing your CRA payroll account setup before your first payroll run protects you from penalties, keeps your remittances on schedule, and establishes the compliance foundation every Canadian employer needs.

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