--- title: "WSIB, EHT, CNESST, and ROEs: The Payroll Mistakes Costing Business Owners Thousands" description: Avoid costly payroll mistakes in Canada. Learn how to comply with WSIB, EHT, CNESST, and ROE requirements to protect your business. image: https://mesa.cpa/hubfs/Copy%20of%20P%26L%20(1).png --- [ Back to Blog ](https://mesa.cpa/blog) ![](https://mesa.cpa/hubfs/Copy%20of%20P%26L%20(1).png) [ Taxes ](https://mesa.cpa/blog/tag/taxes) ![calendar](https://mesa.cpa/hubfs/raw_assets/public/@marketplace/inboundelements_com/Business_Theme/images/icons/calendar.svg)    Apr 22, 2025 # WSIB, EHT, CNESST, and ROEs: The Payroll Mistakes Costing Business Owners Thousands Avoid costly payroll mistakes in Canada. Learn how to comply with WSIB, EHT, CNESST, and ROE requirements to protect your business. ##### [![David Oliveros](https://mesa.cpa/hubfs/Headshots/David%20Oliveros.png) David Oliveros](https://mesa.cpa/blog/author/david-oliveros) You’re trying to build your business, pay your people, and maybe even take home a decent profit, and yet, every few months, some government acronym shows up in your inbox:   **WSIB. EHT. CNESST. ROEs.**   Miss a deadline, file the wrong form, or tick the wrong box, and you could end up with a penalty you didn’t even know existed. These small payroll mistakes quietly cost Canadian businesses thousands every year.   In this post, we’re breaking down the **four government programs** that trip up employers with payroll in Canada, and the small errors that lead to big fines, legal issues, and avoidable payroll tax liabilities. --- # WSIB, EHT, CNESST, and ROEs If you run a business with employees in Ontario, Quebec, or across Canada, these systems are part of your payroll responsibilities. Understanding how they work is essential to staying compliant and out of trouble. --- ## **WSIB (Ontario – Workplace Safety and Insurance Board)** WSIB is Ontario’s workplace injury insurance program. If an employee suffers a work-related injury or illness, WSIB helps cover wages, medical costs, and other benefits. It’s mandatory for many industries, especially construction, trades, and manufacturing. **Common Mistakes:** - Not registering at all (even with just one employee) - Underreporting payroll to reduce premiums - Missing Annual Return deadlines - Using the wrong classification code These errors often stem from outdated payroll processes and can lead to penalties, audits, or unfunded liability issues. --- ## **CNESST (Quebec – Workplace Standards, Safety and Compensation)** CNESST is Quebec’s equivalent to WSIB, and it covers **three areas**: employment standards, occupational health and safety, and workers’ compensation. **You must register if:** - You have **one or more workers performing work in Quebec** - You’ve hired your **first employee in Quebec** (full-time, part-time, or seasonal) **Common Mistakes:** - Not registering within **60 days** of hiring your first Quebec worker - Using the wrong **industry classification** (which affects your premium rate) - Failing to submit the **Déclaration des salaires** (wage declaration) annually - Missing deadlines for injury reporting or premium payments Failure to comply with CNESST requirements can result in interest charges, retroactive assessments, and legal liability if a workplace incident occurs. --- ## **EHT (Ontario – Employer Health Tax)** EHT is a provincial payroll tax that kicks in once your annual payroll exceeds $1 million in Ontario. **Common Mistakes:** - Not realizing you've crossed the $1M exemption threshold - Failing to register when required - Miscalculating payroll for associated corporations (the exemption must be shared) - Missing filing deadlines, even if no tax is owed Use Ontario’s EHT calculator to stay ahead. --- ## **ROEs (Records of Employment)** An ROE is required when an employee experiences an **interruption in earnings**, such as quitting, layoffs, illness, or parental leave. **Common Mistakes:** - Not filing within **5 calendar days** - Using incorrect reason codes - Assuming ROEs aren’t required for part-time or contract staff - Submitting paper forms when digital filing is available Incorrect ROEs can delay EI benefits for employees and invite unnecessary scrutiny from Service Canada.   ![](https://mesa.cpa/hs-fs/hubfs/WSIB%2c%20EHT%2c%20CNESST%2c%20and%20ROEs_%20The%20Payroll%20Mistakes%20Costing%20Business%20Owners%20Thousands%20-%20visual%20selection-png.png?width=538&height=398&name=WSIB%2c%20EHT%2c%20CNESST%2c%20and%20ROEs_%20The%20Payroll%20Mistakes%20Costing%20Business%20Owners%20Thousands%20-%20visual%20selection-png.png) --- ## Why This Stuff Matters (Even If You’re Busy) The most dangerous payroll mistakes aren’t dramatic; they’re **quiet, creeping errors**. You don’t notice them until the penalty notice arrives. CRA, WSIB, CNESST, and EHT don’t always talk to each other, but when one agency finds an issue, others often follow. --- ## How to Stay Out of Trouble (Without Drowning in Paperwork) Here’s how smart business owners avoid the headache: --- ### 1. **Know Your Thresholds** **Ontario** - **WSIB:** Register within 10 business days of hiring your first employee (even family members). - **EHT:** Payroll over **$1,000,000** annually? You're on the hook. **Quebec** - **CNESST:** Register within **60 days** of hiring your first worker. Mandatory even for a single employee. - **Déclaration des salaires** is required each year to calculate your premium. **National** - **ROEs:** Must be issued within **5 calendar days** of the last day worked or interruption in earnings. --- ### 2. **Keep Payroll Centralized and Digital** Use software like **Wagepoint, QuickBooks, or Knit** to automate tax payments, generate reports, and stay on top of filing deadlines. It reduces human error and keeps your records audit-ready. --- ### 3. **Outsource Compliance (Not Just Data Entry)** Your bookkeeper might run payroll, but do they understand WSIB rate groups or CNESST wage declarations? Work with specialists who stay on top of provincial rules and employer obligations. --- ### 4. **Review Annually** Growing payroll? Changing business structure? Your exemption, tax rate, or registration requirement may change. Make annual payroll reviews a habit, or delegate it to a payroll expert. ![](https://mesa.cpa/hs-fs/hubfs/WSIB%2c%20EHT%2c%20CNESST%2c%20and%20ROEs_%20The%20Payroll%20Mistakes%20Costing%20Business%20Owners%20Thousands%20-%20visual%20selection%20(2)-png.png?width=649&height=390&name=WSIB%2c%20EHT%2c%20CNESST%2c%20and%20ROEs_%20The%20Payroll%20Mistakes%20Costing%20Business%20Owners%20Thousands%20-%20visual%20selection%20(2)-png.png) --- ## Final Thoughts: If You’re Growing, You’re Risking You didn’t start a company to decode provincial tax codes, but if you’re hiring, growing, or expanding into new provinces, your exposure increases fast. One missed registration or late form can cost **thousands in penalties**.   The good news? You don’t need to be a payroll expert. You just need a system, or a team, that is.   If you’re ready to stop guessing and start protecting your business, Mesa CPA helps business owners across Ontario and Quebec stay compliant and stress-free. [![David Oliveros](https://mesa.cpa/hubfs/Headshots/David%20Oliveros.png) ](https://mesa.cpa/blog/author/david-oliveros) ### [David Oliveros](https://mesa.cpa/blog/author/david-oliveros) [![Linkedin Author](https://mesa.cpa/hubfs/raw_assets/public/@marketplace/inboundelements_com/Business_Theme/images/icons/linkedin.svg) ](https://www.linkedin.com/in/david-oliveros-cpa-auditor-a44541192/) [![Website Author](https://mesa.cpa/hubfs/raw_assets/public/@marketplace/inboundelements_com/Business_Theme/images/icons/web.svg) ](https://mesa.cpa/) Client Success Partner at Mesa CPA ![Business Image](https://f.hubspotusercontent10.net/hubfs/8768169/Business/Theme/images/cta-1.svg) ## Subscribe to our newsletter   ## Latest Articles More articles ![SR&ED Credit Is Not Just For Software Companies](https://mesa.cpa/hubfs/Hero%20Image%20Template%201%20(11)-1.png) [ Taxes ](https://mesa.cpa/blog/tag/taxes) June 25, 2026 #### SR&ED Credit Is Not Just For Software Companies Discover if your business qualifies for the SR&ED tax credit, which supports innovation across various industries, not just tech. 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