Mar 20, 2025
Processing payroll manually can be one of the most time-consuming and frustrating tasks for small business owners in Canada. Between calculating wages, managing payroll expenses, handling income deductions, and staying compliant with ever-changing federal and provincial taxes, the process can quickly become overwhelming. A single mistake in payroll management can lead to costly penalties, unhappy employees, and hours of extra work correcting errors.
If you're paying an accountant to process payroll, you may be spending more than necessary. Many cloud-based payroll software solutions can automate payroll processing, reducing costs and increasing efficiency. These payroll platforms save valuable time, minimize errors, and ensure compliance with Canadian payroll regulations. In this guide, we’ll explore the best payroll software options for Canadian companies, their key features, and how to choose the right one for your business requirements.
What to Look for in Payroll Software
Not all payroll platforms are created equal. When selecting a solution for your business, consider these key factors:
- Automation – Automatic T4 generation and filing, as well as automated deductions for CPP, EI, and income tax.
- Integrations – If you use a popular accounting software or accounting platform, ensure the payroll system integrates smoothly.
- Value for Price - If you're a small business owner you probably don't need all the HR features that some of these platforms provide. In this case we recommend looking for the most automation with the best pricing.
Payroll Software Comparison
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Payroll Software
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Price/Month
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Automation
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Integrations
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Wagepoint
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$22 + $4 per employee
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Integrates with Major Accounting Platforms
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QuickBooks Standard Payroll
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Starts at $20
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Inside QBO and integrates to HR platforms
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Payworks
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Custom Pricing
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Integrates with Major Accounting Platforms
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Ceridian Dayforce
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Custom Pricing
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Limited integrations without middleware
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ADP Workforce Now
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Custom Pricing
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Limited integrations without middleware
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Wave Payroll
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$20 + $6 per employee
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Limited integrations
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Top Payroll Software for Small Businesses in Canada
Wagepoint
Wagepoint is a widely used Canadian payroll software company designed specifically for small businesses. It offers a straightforward payroll solution while ensuring full compliance with Canadian regulations.
Key Features:
- Automatic tax remittances for payroll taxes
- Direct deposit and electronic T4s
- Employee onboarding and self-service access
- Payroll module for financial management
- Year-end reporting and records of employment
Limitations:
- Limited features for larger companies
- Primarily designed for Canadian organizations
- Limited integration options outside of QuickBooks Online and Xero
QuickBooks Standard Payroll
For businesses already using QuickBooks Online, this payroll program integrates seamlessly with the accounting platform.
Key Features:
- Full-Service Payroll with automated tax calculations
- Employee profiles and employee records
- Payroll functionalities including T4, T4A, and RL-1 generation
- Time management and tracking integration
- Employee hours and sick time tracking
Limitations:
- Not ideal for complex payroll requirements
- Additional cost for add-on modules
Payworks
A robust payroll solution with HR and workforce management features, Payworks is designed for Canadian companies.
Key Features:
- Compliance management with Canadian payroll regulations
- Employee experience enhancements through self-service portals
- Performance management tools and benefits administration
- Payroll startups and growing business entity support
Limitations:
- The steep learning curve for businesses new to payroll services
- Additional services may incur an extra charge
Ceridian Dayforce
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Best for businesses with growth potential, Ceridian Dayforce offers a comprehensive payroll solution that includes advanced features like performance reviews and benefits modules.
Key Features:
- Real-time payroll processing with accurate calculations
- Employee per month scalability for business sizes of all levels
- User interface designed for ease of use
- Integrated platform with extensive HR functionalities
Limitations:
- Some users report difficulties with the reporting module
- Higher pricing structure for businesses with thousands of employees
ADP Workforce Now
A well-established payroll company with solutions for businesses of all sizes.
Key Features:
- Tax filing and remittances
- Employee onboarding and benefits administration
- Payroll program integration with ADP Workforce Now
- Customizable reporting options and additional features
Limitations:
- Complex user interface for first-time users
- Lack of transparent pricing and possible year-end fee
Wave Payroll (Best for Freelancers)
Wave Payroll is an affordable option offering basic payroll processing and seamless integration with Wave’s free accounting software.
Key Features:
- Automated payroll processing
- Direct deposit with online solutions for contractors
- User-friendly interface and simple setup
Limitations:
- Limited features for businesses with complex payroll requirements
- Not ideal for frequent payrolls like bi-weekly and semi-monthly payrolls
Conclusion
Payroll services simplify payroll processes and ensure compliance with tax requirements. Whether you need a straightforward payroll solution like Wagepoint or a robust platform like ADP Workforce Now, the right payroll platform can save time and money while ensuring peace of mind.
Before committing, consider customer reviews, a free trial, or a demo to explore features. For businesses with unique payroll needs, evaluating software scalability, pricing structure, and level of customer support will be key to making the best choice. Prioritizing compliance management, cloud-based payroll software capabilities and integrated solutions will streamline payroll experience and reduce administrative burden.
