Payroll
Canadian payroll coordination: source deductions
Finbryn coordinates payroll for Canadian businesses on QuickBooks Online, Xero, Sage 50 or Wagepoint. Each draft run is reviewed against timesheets and current provincial rate tables before approval, source deductions are reconciled against the remittance summary, and journal entries are posted once the run is approved.
Payroll reconciliation
Illustrative client · August 2026
CAD
- Payroll register agreed to the provider reportDone
- Net pay agreed to the bank debitDone
- Withholdings and employer costs postedDone
- Payroll liability accounts cleared to zeroIn progress
- Filing dates checked against the calendarNext
Illustrative. An example of the document, not a client's figures.
What we check before a pay run goes out
A payroll platform will calculate CPP, EI and income tax correctly once the setup is right, but it will not catch a rate change that never made it into the system, a new employee entered under the wrong province, or a bonus posted to the wrong pay period on its own. We review the draft run against timesheets and current rate tables before you approve it, so a correction happens before a cheque or direct deposit goes out, not after.
After the run is approved
Once a pay run is approved, we post the journal entry to QuickBooks Online, Xero or Sage 50: gross wages, CPP and EI withholdings, federal and provincial income tax withheld, and the net pay clearing entry. The source deductions withheld are reconciled against the payroll platform's remittance summary each period, so the liability on your books matches what was actually sent to the Canada Revenue Agency.
New hires and leavers
Before the first pay run, we check that new hire records and the required tax forms are on file. When someone leaves, a Record of Employment needs to be prepared and issued, and we get that ready for review as part of the same process rather than as a separate scramble.
Multi-province setup
Each province sets its own income tax rates on top of the federal deductions, and Quebec runs a parallel provincial system outside the rest of Canada's arrangement. We confirm during setup that Wagepoint, Sage 50 or whichever platform you use supports every province you pay into, and flag a new-province hire the moment it appears in a draft run.
What this does not include
We do not remit source deductions ourselves. That stays with the payroll platform or processor under its own CRA remittance account. Our role is the review before approval and the reconciliation after.
Questions
Frequently asked questions: Canadian payroll coordination: source deductions
Who actually sends our source deductions to the CRA?
The payroll platform or processor remits them under its own remittance account. We review the draft run beforehand and reconcile the remittance summary against your books afterward.
Do you handle Quebec payroll differently?
Quebec runs its own provincial system alongside the federal one. We confirm the payroll platform supports it correctly rather than treating it the same as the rest of Canada.
What do you need before the first pay run?
Access to the payroll platform's reporting, your chart of accounts, and new hire records with the required tax forms already on file.
What exactly is included in canadian payroll coordination: source deductions?
New hire records and required tax forms checked before each pay run, and draft pay run reviewed against timesheets and current provincial rate tables. This work runs inside QuickBooks Online or Xero, whichever your business already has in place, and it rolls into your regular monthly close rather than sitting off to the side as a separate, unreconciled process.
What happens to our canadian payroll coordination: source deductions records if we switch providers?
Everything stays inside your own QuickBooks Online or Xero account, so the full history transfers with the subscription, not with Finbryn. You can hand canadian payroll coordination: source deductions to another provider or bring it in-house at any point without losing a reconciliation or having to rebuild the file first.
Who remits our source deductions?
The payroll platform or processor remits them on your behalf. We coordinate the pay-run review and reconcile the remittance summary to your books.
Can you handle employees in more than one province?
Yes, provided the payroll platform supports each province's rates, which we confirm during setup.
How do we get started with canadian payroll coordination: source deductions?
Getting started with canadian payroll coordination: source deductions begins with a short review of your current records and software access. Once that is done we confirm scope and timing in writing, and ongoing work begins on the schedule agreed with you.
What if our records for canadian payroll coordination: source deductions are not up to date?
If your records are behind, we scope a catch-up first so canadian payroll coordination: source deductions starts from a clean, reconciled base. That catch-up is priced and timed separately from the ongoing engagement, so you always know what each part costs.
Related services
- PayrollPayroll journals and reconciliationsPayroll journal entries recorded each pay period and reconciled against the payroll platform's reports, so wages, withholdings and benefit deductions match your general ledger.
- BookkeepingMonthly bookkeepingOngoing monthly bookkeeping: transactions sorted into categories, accounts reconciled and month-end reports delivered in the software you already use.
Industries
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.