Finding the best payroll software in Canada can be challenging, but the right solution can transform your business operations. The ideal payroll software offers streamlined processes to ensure accuracy, compliance, and efficiency for companies of all sizes.
They ensure benefits and deductions comply with Canadian labor law, reducing complexity and potential errors. In this review, I have analyzed and curated a list to help you find the perfect payroll software for your needs in the Canadian market.
- Show Full Guide
The Best Payroll Software Canada 2024
The Best Payroll Software for Canada
- QuickBooks: Best for Small Businesses in Canada
- Wave: Best for Solopreneurs and Freelancers in Canada
- Dayforce: Best for Complex Businesses in Canada
- ADP: Best for Large Enterprises in Canada
- Payworks: Best for Full-Service Payroll in Canada
- Knit: Best for Multiple Location Management
- Deel: Best for Global Payroll Solution
- Rippling: Best for Extensive Integrations
- WagePoint: Best for Basic Payroll Processing in Canada
- Humi: Best for Integrated Payroll & HR Management in Canada
The Best Payroll in Canada Reviewed
My analysis of the best payroll software in Canada is based on criteria such as scalability, price, usability, compliance, functionality, third-party reviews, and other testing methodologies.
1. QuickBooks — Best for Small Businesses in Canada
Free Trial | Free for 1 month or save 75% for the first 6 months |
---|---|
Price From | Starting from $25/month + $4/employee/month |
Top 3 Features | Integration With Other QuickBooks Tools, Record of Employment (ROE), Tax Forms |
Pros
- Affordable pricing plans
- User-friendly interface and intuitive features
- Dedicated Canadian support
- Integrates seamlessly with QuickBooks tools
Cons
- Limited benefits management
- Only handles 1099-NEC (T4A) payments
2. Wave — Best for Solopreneurs and Freelancers in Canada
Free Trial | Yes, 30-day free trial |
---|---|
Price From | Starting from $25 CAD/month + $6 per active employee |
Top 3 Features | Direct Deposit, Tax Payments, Self-Service Pay Stubs |
Pros
- 30-day free trial
- User-friendly interface and intuitive design
- Canadian-focused support
- Unlimited free direct deposits
Cons
- Limited contractor payment features
- No mobile app
- Not suitable for complex payroll needs
3. Dayforce — Best for Complex Businesses in Canada
Free Trial | No |
---|---|
Price From | Custom |
Top 3 Features | Automated Payroll Processing, Multiple Pay Schedules, Benefits Administration |
Pros
- Built-in Canadian tax compliance tools
- Best for businesses with advanced needs
- Strong track record and industry expertise
- Real-time attendance and time tracking
Cons
- Higher starting price compared to some competitors
- Customization options can be complex
- Its employee service needs improvement
4. ADP — Best for Large Enterprises in Canada
Free Trial | Yes, 3 months free trial |
---|---|
Price From | Custom |
Top 3 Features | Regulatory Alerts, Integrations with Third-Party Tools, Full-Service Payroll & Tax Filing |
Pros
- Global payroll expertise
- Payroll tools for different business sizes
- Advanced features and dedicated support
- Labour and tax regulations monitoring
Cons
- Not all prices are available
- It might require training for less tech-savvy users
- Not ideal for smaller budgets
5. Payworks — Best for Full-Service Payroll in Canada
Free Trial | No |
---|---|
Price From | Custom |
Top 3 Features | Dedicated Service Support, Auto Filing, Continuous Software Upgrade |
Pros
- Comprehensive features
- Adapts to your growing business needs
- Easy to navigate and manage your payroll
- Offers dedicated support
Cons
- No free version or trial
- Prices are not disclosed
- Limited integration capacity
6. Knit — Best for Multiple Location Management
Free Trial | Yes, 30-day free trial |
---|---|
Price From | Starting from $40/month + $6/month/employee |
Top 3 Features | Multiple Pay Rates, Canadian Compliance, CRA Source Deduction Remittances |
Pros
- Easy to navigate, even for beginners
- Tailored to comply with Canadian regulations
- Integrations with popular accounting software
- Supports multiple locations
Cons
- It might not be suitable for complex payroll needs
- Not ideal for businesses with employee benefits
- Only handles basic 1099 payments
7. Deel — Best for Global Payroll Solution
Free Trial | Free plan available |
---|---|
Price From | Starting from $29/month/employee |
Top 3 Features | Canada-Specific Benefits, Complete Guide For Hiring Support, Global Analytics |
Pros
- Global payroll and compliance across 150+ countries
- Consolidates all your payroll data and processes in one system
- Handles onboarding and offboarding on your behalf
- Offers Canada-specific benefits
Cons
- No free plan for its payroll function
- It could be expensive for a small business
8. Rippling — Best for Extensive Integrations
Free Trial | No |
---|---|
Price From | Starting from $11 CAD/month per employee |
Top 3 Features | Payroll Comparison, Dedicated Mobile App, Payroll Compliance |
Pros
- Seamless integrations with popular apps and tools
- Integrated HR and payroll in one platform
- Canadian assistance for your payroll questions
- Automated payroll compliance
Cons
- No free trial or version is available
- Fewer country options than competitors
- There is no phone support
9. WagePoint — Best for Basic Payroll Processing in Canada
Free Trial | Yes, 14-day free trial |
---|---|
Price From | Starting from $20/month + $4 per employee/contractor |
Top 3 Features | Intuitive Interface, Security-Focus, Auto Remittance |
Pros
- Transparent and budget-friendly pricing
- Tailored to comply with Canadian regulations
- Canadian-focused support
- Easy to use
Cons
- Limited contractor payment features
- Its basic features may not be enough for an organization with complex payroll needs
10. Humi — Best for Integrated Payroll & HR Management in Canada
Free Trial | Yes, 14-day free trial |
---|---|
Price From | Custom |
Top 3 Features | Canadian HR and Payroll Experts, Calendar Integrations, EHT and Workers’ Compensation Calculations |
Pros
- Canadian-focused support and compliance
- User-friendly mobile app
- Integrated HR and payroll in one platform
- Mon-to-month pricing model, fostering users’ freedom
Cons
- Certain modules are clunky
- Customer support might be slow
- Lack of user configuration
- There is no free forever plan
The Best Canadian Payroll Software 2024 – Compared
The table below provides a quick overview of all the key features of each Canadian payroll software reviewed in this article. This comparison table helps you to understand better what each solution excels at and select the one that is the best fit for your business:
Payroll Software | QuickBooks | Wave | Dayforce | ADP | Payworks | Knit | Deel | Rippling | WagePoint | Humi |
---|---|---|---|---|---|---|---|---|---|---|
Best For | Small Businesses in Canada | Solopreneurs and Freelancers in Canada | Complex Businesses in Canada | Large Enterprises in Canada | Full-Service Payroll in Canada | Multiple Location Management | Global Payroll Solution | Extensive Integrations | Basic Payroll Processing in Canada | Integrated Payroll & HR Management in Canada |
Free Trial | Free for 1 month or save 75% for the first 6 months | Yes, 30-day free trial | No | Yes, 3 months free trial | No | Yes, 30-day free trial | Yes, Deel HR | No | Yes, 14-day free trial | Yes, 14-day free trial |
Starting Price | $25/month + $4/employee/month | $25 CAD/month + $6 per active employee | Custom | Custom | Custom | $40/month + $6/month/employee | $29/month/employee | $11 CAD/month per employee | $20/month + $4 per employee/contractor | Custom |
Top Features | Integration With Other QuickBooks Tools, Record of Employment (ROE), Tax Forms | Direct Deposit, Tax Payments, Self-Service Pay Stubs | Automated Payroll Processing, Multiple Pay Schedules, Benefits Administration | Regulatory Alerts, Integrations with Third-Party Tools, Full-Service Payroll & Tax Filing | Dedicated Service Support, Auto Filing, Continuous Software Upgrade | Multiple Pay Rates, Canadian Compliance, CRA Source Deduction Remittances | Canada-Specific Benefits, Complete Guide For Hiring Support, Global Analytics | Payroll Comparison, Dedicated Mobile App, Payroll Compliance | Intuitive Interface, Security-Focus, Auto Remittance | Canadian HR and Payroll Experts, Calendar Integrations, EHT, Workers’ Compensation Calculations |
How We Review And Test Payroll Products
To provide our readers with accurate and well-informed recommendations, we test the most popular payroll products on the market to find the best options for you. Our methodology consists of the following criteria:
- Features: We examine the features to determine what capabilities are offered, how useful those capabilities will be for the user, and how the variety of features compare to competitor software.
- Scalability: We look at how many users can be added to a platform, and how easy it is to do so, to ensure companies can bring more employees on payroll with ease as they scale their operations.
- Error Handling: Errors in payroll can be disastrous for a company, so it’s critical payroll software safeguards against them. We evaluate how quickly each software can adjust and fix errors to ensure there are no interruptions in payroll operations.
- Price and Value for Money: We look at the features, integrations, customer service, and extras to determine if the price matches the value it provides. We score a product higher if it offers a free trial, and if it is transparent about its pricing plans.
- Integrations: We evaluate the integrations of each piece of software to determine how well it fits in with other key pieces in a business’s software stack, and whether its functionality can be expanded as required.
- User Experience: We get hands-on with each product to put ourselves in the shoes of a new user, testing each platform to gain understanding if the platform is easy to use or requires onboarding.
- Security: We dig into the security policies of each company, interrogating the safeguards they have in place to ensure the software protects user data properly.
- Compliance: We evaluate payroll software based on whether it offers local compliance when it comes to accounting, taxes, documentation, and more.
What is Canadian Payroll?
Canadian payroll involves managing employee compensation and deductions within Canada in compliance with Canadian labour law and tax regulations. To set up payroll in Canada, employers need information such as business address and number, CRA payroll account number, workers’ compensation information, ROEs issued, year-to-date amounts owed to all employees, bank account details, tax rates, and remittance schedule.
Because a Canadian payroll strictly functions based on Canadian laws and regulations, some essential salary structure elements include gross income, employee benefits, tax deductions, CPP deductions, and EI deductions. It’s also important to maintain accurate records of all payroll transactions for each employee, including pay stubs, tax forms (like T4 slips), and other relevant documentation to comply with Canada payroll expectations.
Benefits of Using Payroll Software for Canada
Using payroll software in Canada can save businesses from a lot of HR and finance task hassles. Here are the top 5 benefits of using payroll software that is made for the Canadian market.
- Cost Effectiveness: The purpose of adopting Canadian payroll software is to ensure that all payroll processing conforms with Canadian standards. Manual payroll processing may result in data errors, fines, and penalties. With the help of payroll software that has the functionalities of serving Canadian audiences, you’ll be able to spend less on manual payroll processing workarounds and avoid paying penalties.
- Accuracy and Compliance: Payroll software streamlines procedures, ensuring accurate calculations and deductions, leading to compliance with Canadian legislation. As the law changes, the system automatically updates to ensure that your business reports and operations are updated with the latest regulations.
- Time-Saving: A payroll software for Canada saves you time by automating payroll processes rather than relying on paperwork and spreadsheets. Similarly, HR would have more time to strategize for business development.
- Security: Every country has specific security standards, which may influence software’s security measures. Payroll software for Canada employs safety measures consistent with Canadian regulations. This way, businesses can ensure data security with advanced encryptions and Canada-based compliance.
- Seamless Payment: Using payroll software for Canada helps businesses access flexible payment options for Canadian payment/banking processes.
Key Features of Payroll Software in Canada
Payroll software must include critical features to guarantee its functionality and adherence to Canadian labour laws. Below are key features of payroll software in Canada to look out for when choosing one.
This feature allows you to file taxes according to Canadian regulations. It files & pays federal payroll taxes to the CRA, including EI and CPP contributions.
This involves filing taxes based on provincial tax rules and laws. Depending on your location, you may have to pay certain taxes for the province after the federal income tax.
Software with these features ensures regular updates that comply with Canadian requirements. It’s critical to use payroll software that updates when Canadian laws change, monitors deadlines, and assesses an organization’s compliance to prevent penalties.
To meet the CRA requirements, having payroll software that automates creating and filing tax forms like T4, T1, Schedule 2, RL-1 slips, etc, is important.
Direct deposit is one of the payment options available on many popular payroll software, and it’s easy and fast to use. Choose Canada payroll software that allows you to select the most convenient payment method to streamline payment operations and improve employee satisfaction.
Payroll reports help you visualize your payment history and compare it to current ones, giving you insight into improving. Customizable report features allow you to tailor insights to your business goals and style.
Trends in Payroll Software for Canada 2024
Technological advancements have influenced the complexity and use of payroll software in Canada in 2024. This opens up new potential for payroll and HR teams to grow and innovate. It also allows them to focus on other meaningful work rather than stressful activities.
Here are some of thee most popular trends in Canadian payroll software for 2024:
- AI and machine learning: Because manual data entry is prone to errors, automation and AI technologies accelerate payroll software calculation by automating computations, validating data, detecting inconsistencies, and ensuring payroll is completed accurately and on schedule.
- Integrations: With increased workloads and access to data, many firms want to use a payroll system that integrates with their existing business tools. According to an HR survey conducted in 2023, 52% of participants believe that integrating payroll, HR, and attendance systems is now an essential element in choosing a payroll processing solution.
- Data security: As technology advances, the need for secure software increases. Because payroll software contains sensitive business data, selecting software with strong security features is crucial in 2024.
- Remote work trends: With the rise in remote work and the gig economy, there’s a high rise in demand for payroll software that supports mobile accessibility, team collaboration, and remote work management. This has also influenced many payroll software to support multiple countries, languages, and locations.
- Flexible Payment Options: With the availability of many payment options, organizations are turning towards payroll solutions with a comprehensive payment option. According to data from HR research institutes, over 90% of firms choose direct deposit to pay employees since it is easy.
How to Choose the Best Payroll Software
Finding the best Canadian payroll software is more than just checking off boxes. It’s about creating the proper balance between your budget, demands, and ease of use.
Here’s a guide to selecting the ideal match:
Review your budget alongside the features offered in different plans. Find a plan that delivers the functionality you need at an affordable price.
Read our reviews and user feedback to see how easy the product is. Remember that you want a system that is easy to navigate and does not require extensive configuration or training.
Check if the tool has a mobile app and other integrations, such as accounting software, are included in your selected subscription. Remember that some integrations may be limited to higher tiers.
Check whether the software offers all the features you need now, like automatic tax calculations and reporting. Also, note that some advanced features might be locked in higher plans.
Choose a provider with reliable support options, including extended Canadian hours and multiple contact methods. Our reviews incorporate user feedback on support quality so you can make an informed decision.
Choose a dynamic software that can adapt to your growth. Consider the cost of scaling up and ensure the added functionalities you’ll need are available within the same provider.
Choose software that connects smoothly with your existing Canadian accounting, bookkeeping, and other company tools. This will improve your process and save time.
FAQs
What is the best payroll software on the market for Canada?
What is the best free payroll software for small businesses in Canada?
What is the most affordable payroll service in Canada?
How much does Canadian payroll cost?
What is the best software for payroll calculation?
How do Canadian payroll software handle provincial tax differences?
Is QuickBooks payroll or ADP better?
References
- Record of Employment (Government of Canada)
- Provincial and territorial tax and credits for individuals (Government of Canada)
- The Current State and Future of Payroll 2023: Consider more integrated, transparent and strategic approaches that leverage great partnerships (HR.com)
- Canada HR Payroll Software Market Analysis- Industry Size, Share, Research Report, Insights, Covid-19 Impact, Statistics, Trends, Growth and Forecast 2024-2032 (MarkWide Research)