CRA Accounts
How to Register for a CRA Payroll Account
Learn how to register for a CRA payroll account: who needs one, what information you'll need, and how to add an RP account to your Business Number.
To register for a payroll account with the Canada Revenue Agency (CRA), you typically add a payroll program (RP) account to the Business Number (BN) your sole proprietorship already uses. You can do this online through CRA My Business Account, by telephone, or by mail — and it is best done before your first pay period as an employer, not after. Today, most sole proprietors who already hold a BN can complete the online registration in a single sitting.
What a CRA payroll account actually is
A payroll account is not a bank account. It is a CRA program account that sits under your Business Number, alongside your GST/HST (RT) account and any corporate income tax (RC) account you may hold. Once opened, the payroll account is identified by your nine-digit BN, the RP program identifier, and a reference number.
The account exists so the CRA can track the amounts you withhold from employee pay — Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums, and federal income tax — and the amounts you remit on your employees' behalf. Keep in mind that your payroll account, your GST/HST account, and your personal income tax account are all separate; mixing them up is one of the most common administrative errors new employers make.
Who needs to register for payroll deductions
You generally need a payroll account if you are an employer who pays salary, wages, bonuses, commissions, vacation pay, or taxable benefits to employees in Canada. That includes sole proprietors who hire staff. You may also need one in certain other situations, such as paying fees for services to a non-resident, or acting as a trustee.
You do not need a payroll account simply because you are self-employed. Your own business income is not employment income and is reported on form T2125, not through payroll. If you are unsure whether you have crossed the line into being an employer, see our guide on when you need a CRA payroll account, and our explainer on whether a sole proprietorship can have employees.
How to register for a CRA payroll account step by step
- Confirm you have a Business Number. If you do not, request one from the CRA first — see how to get a Business Number in Canada.
- Sign in to CRA My Business Account. If you have not set it up, you will need to register for it through a CRA sign-in partner or with a CRA user ID.
- Select your BN and choose the option to add or register a new program account.
- Choose “Payroll” (RP) as the program type.
- Enter the requested details, such as your legal name, business address, the period your first remittance covers, and your remitter type. Confirm current requirements on the CRA website.
- Submit the registration. In many cases the CRA issues your payroll account number in My Business Account right away; otherwise, allow time for processing.
Online, by phone, or by mail: which route fits
| Method | Best suited for | What to expect |
|---|---|---|
| CRA My Business Account (online) | Most sole proprietors who already have a BN | Usually the fastest route; the account number is often available immediately |
| Telephone (CRA business enquiries line) | Owners without reliable internet access | Have your BN, SIN, and business details ready before you call |
| Mail or form submission | Unusual situations or those who prefer paper | Longer processing; confirm the current form and mailing address with the CRA |
Whichever route you choose, the information requested is essentially the same. Contact details and processing times can change, so verify them on the CRA website before you start.
What to have ready before you register
- Your nine-digit Business Number
- Your Social Insurance Number (SIN) for identity verification
- The legal name and business address of the proprietorship
- The date you expect to start paying employees
- A rough estimate of your monthly payroll, which helps the CRA set your remitter type
- Banking details, if you plan to remit electronically
An estimate of payroll is not binding; you can adjust it later. If your payroll grows, shrinks, or you stop employing staff, you may need to update your account — see how to update your CRA business account.
After you register: what the CRA expects
Once your payroll account is open, your duties as an employer begin. In general terms you must:
- Withhold CPP contributions, EI premiums, and income tax from each pay
- Remit those amounts by your remittance due date, which depends on your remitter type
- Issue T4 slips and file the T4 Summary, typically by the end of February following the calendar year
- Issue a T4A in certain situations, such as fees paid for services
Missed or late remittances can attract penalties and interest, so set calendar reminders for your due dates and confirm the current rules on canada.ca. Everything is easier to manage through CRA My Business Account, where you can view balances, file returns, and update your details.
Common mistakes to avoid
- Waiting until after the first payday. Registering late does not erase the withholding obligation, and interest or penalties may apply.
- Confusing your payroll account with your GST/HST account. They are separate program accounts; our guide on the Business Number vs the GST/HST number explains how to tell them apart.
- Using your personal CRA account. Payroll belongs under your business BN, not your personal income tax account.
- Forgetting to update or close the account. If you stop employing staff, notify the CRA so you are not expected to keep filing nil remittances.
Frequently asked questions
Do I need a payroll account if I'm a sole proprietor with no employees?
Generally, no. If you have no employees and only draw money from the business for personal use, that is not employment income and you do not need a payroll account. You report business income on form T2125 instead. You would need one if you hire staff, or in certain other situations such as paying fees for services to a non-resident. Confirm your specific situation on canada.ca.
How long does it take to register for a CRA payroll account?
When you register online through CRA My Business Account, the account number is often issued immediately, though this is not guaranteed. Registrations completed by phone or mail can take longer. The key point is to register before your first pay period so your remittance schedule is in place. Processing times change, so check the CRA website for current expectations.
Can I register for a payroll account without a Business Number?
No. A payroll account is an RP program account that lives under a Business Number. If you do not have a BN, you need to request one from the CRA first, which you can generally do online or by phone. Once the BN is issued, you can add the payroll account. Our guide to getting a Business Number in Canada walks through the steps.
Do I need a separate payroll account for each province?
For CRA purposes, no — one federal payroll account covers CPP, EI, and federal income tax for employees across Canada. However, if you have employees in Quebec, you generally deal with Revenu Québec for provincial income tax and certain provincial programs, in addition to your CRA account. Confirm the current rules with the CRA and Revenu Québec.