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 check the wrong box — and suddenly you’re staring down a penalty you didn’t even know existed. These common payroll mistakes quietly cost Canadian businesses thousands of dollars 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These errors often stem from outdated payroll processes and can lead to penalties, audits, or unfunded liability issues.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.
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.
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.