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Payroll software for a small Canadian business
Payroll is where small mistakes become CRA letters. Pick a Canadian payroll tool that remits for you and produces T4s and ROEs, and stop doing it in a spreadsheet.
Best-ofUpdated Nov 2, 2026Reviewed by Allison (Accountant for 30 years, about 15 of them as controller for hotels, restaurants and lounges, plus oilfield bookkeeping.)
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What payroll software has to do in Canada
Whatever you pick, it should:
Calculate income tax, CPP and EI deductions from the CRA tables, and the employer's share.
Remit source deductions to the CRA on your remitter schedule, or at least tell you exactly what to remit and when.
Produce T4 slips (due to employees and the CRA by the last day of February, moved to the next business day if it falls on a weekend) and T4As for contractors where needed.
Produce and submit Records of Employment (ROEs) when someone leaves or has an interruption of earnings. Seasonal crews and kitchens do this a lot.
Track workers' compensation premiums (WCB Alberta here).
Any business that wants payroll separate from its ledger; Xero, FreshBooks or Wave users
Lite $20/mo + $4/employee (1 run/month); Core $40 + $6 (unlimited runs); Plus $80 + $10 (time clock, geofencing, PTO)
QuickBooks Payroll
Businesses already on QuickBooks Online
Paid add-on (Core / Premium / Elite); check the current price on Intuit's page
FreshBooks + PaymentEvolution
FreshBooks users
Arranged through FreshBooks (Canadian partner PaymentEvolution); price on request
Wave payroll
Wave users
Paid add-on; see Wave's page for current Canadian availability and price
Allison has worked in QuickBooks for years, mostly the desktop version. QuickBooks Online Payroll, Wagepoint, PaymentEvolution and Wave payroll are researched from their own pages.
Wagepoint cost examples (our arithmetic, before tax)
3 employees on Core: $40 + 3 × $6 = $58/month
12 employees on Core: $40 + 12 × $6 = $112/month
12 employees on Plus (with clock-in): $80 + 12 × $10 = $200/month
Industry notes
Alberta and WCB: Intuit says QuickBooks Payroll's automatic workers' comp tracking covers only QC, ON and BC. In Alberta, plan on reconciling WCB yourself. Wagepoint says it calculates WCB/WSIB.
Restaurants and bars: decide how tips are handled before setup. Per the CRA, controlled tips (the employer collects, pools or pays them out) need income tax, CPP and EI withheld and go on the T4; direct tips (customer to employee) don't need employer withholding, but the employee must report them. Confirm your setup with your accountant.
Oilfield and trades crews: field hours usually start on a timesheet or field ticket. Export them to payroll rather than re-typing. Wagepoint Plus has its own clock-in with geofencing.
Two of the biggest field-service apps for home and property service crews. One is from Edmonton, one from San Diego. Here's what each costs and where each fits, from their own pages.
The two big cloud ledgers. Xero is cheaper at the middle tier and includes Hubdoc. QuickBooks has Canadian payroll built in and more bookkeepers who know it.