Workforce Payments Guide Canada

Last updated: Dec 24, 2023

Canadian Dollar (CAD)
Payroll Frequency
Bi-Monthly / Monthly
Fiscal Year
April 1st - March 31st
Employer Taxes
7.91% + 1.37 CAD for every 100 CAD
Employee Costs
Central Bank
Bank of Canada
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3rd Party Payments

Authority  Payment Frequency  Due Date  Payment Method 
Personal Income Tax (PIT)  Annual  30 April (15 June for self-employed individuals)  Various 
Corporate Income Tax (CIT)  Monthly/Quarterly  Last day of each month (for some CCPCs, quarterly instalments are allowed if certain conditions are met). Any balance payable is generally due on the last day of the second month following the end of the tax year  Various 
Goods and Services Tax (GST), Harmonized Sales Tax (HST), and Quebec Sales Tax (QST) for Financial Institutions  Annual  30 June  Various 
Provincial Taxes  Varies by province  Varies by province Various 
Pension Contributions (Canada Pension Plan)  Annual  Varies by plan  Various 


Payments Coverage

Papaya Global fully supports payments in Canada.

Contractor Payments

Papaya Global supports payments to contractors in Canada. The payout currency may vary based on the receiver bank account setup when receiving foreign currencies. it is advised for contractors to reach out to their bank to confirm how foreign currencies are handled

Payroll Frequency

Bi-Monthly / Monthly


The Know Your Customer (KYC) process in Canada is a legal obligation imposed by the Canadian government on banks and financial institutions to prevent illegal activities such as money laundering or funding of terrorist organizations.

The process involves collecting identifying information on the person opening the account, including an official photo ID, address, and Social Insurance Number.

This regulation was established by the 1991 Proceeds of Crime (Money Laundering) Act and expanded in December 2001 under the Anti-Terrorism Act.

An extension of these KYC laws is “Know Your Business” (KYB), which applies to business accounts and includes the verification of registration credentials, location, the Ultimate Beneficial Owners (UBOs) of the business, and a screener to ensure that the business hasn’t been involved in any criminal activity.

In 2021, further rules were introduced to enhance the standard of client care and require documentation for each step of the due diligence process. These client-focused reforms (CFR) act as a framework for firms to personalize portfolios and attract more clients.

Advisors must collect information on client circumstances that can help customize portfolios, including their client’s investment knowledge. They must update KYC information at least once every three years for most accounts and every 12 months for managed portfolios.

One of the major shifts in the KYC processes is the necessity to document both risk tolerance and risk capacity. The KYC process also requires advisors to document a reasonable range of alternatives to investment proposals.

Banking Regulations

In Canada, legislative proposals were made to address hybrid mismatch arrangements, which are cross-border arrangements characterized differently under different countries’ tax laws. These proposals aim to implement the recommendations of the Organization for Economic Co-operation and Development (OECD) BEPS Action Plan into the Income Tax Act to eliminate the tax benefits arising from hybrid mismatch arrangements.

The proposed rules aim to neutralize the deduction/non-inclusion mismatches arising from a hybrid mismatch arrangement. The primary operative rule generally applies to “inbound” arrangements – a payment by a Canadian taxpayer to a foreign entity under a hybrid mismatch arrangement, while the secondary operative rule generally applies to “outbound” arrangements – a payment received by a Canadian taxpayer from a foreign entity under a hybrid mismatch arrangement.

Bank Account Opening

To open a company bank account in Canada, you would need to provide one document from each of the following two categories:

  • Canadian Property Tax Assessment,
  • Canadian provincially issued vehicle registration,
  • Benefits statement from a Canadian Federal or Provincial Government,
  • Utility bill,
  • Registered Retirement Account statement,
  • Term deposit/GIC statement,
  • Canadian Birth Certificate,
  • Canadian Citizenship Certificate,
  • Temporary Canadian Driver’s License,
  • Insurance document issued by a Canadian insurer.

Other documents required include:

  • Articles of incorporation/association,
  • Business name registration if applicable,
  • Government-issued photo ID,
  • Information about all those owning at least 25% of your business, including their names, addresses, and occupations.

You will also need to provide your Canada Revenue Agency registration number if you have one.

If you are a non-Canadian without a work or study permit or a non-resident, you will need to work with a branch representative. If your company is incorporated, you will need additional documents. If your organization receives donations from the public, you’ll need your Canada Revenue Agency registration number.

The account opening process can be completed remotely by phone with a TD Business Banking Specialist. If your business has only a single signer, you can apply for an account online in as little as 15 minutes. The bank or provider will verify your account, which can take a day or two.

If you are a foreign non-resident, you must provide proper documentation for the business, shareholders, and directors.

International Banks

The major foreign banks operating in Canada are:

  • AMEX Bank of Canada
  • Bank of America
  • Bank of China (Canada)
  • Bank One Canada (in liquidation)
  • Bank of New York Mellon, Canada
  • Barclays Bank plc, Canada Branch
  • BNP Paribas Canada
  • BofA Canada Bank
  • Capital One Bank
  • China Construction Bank, Toronto Branch
  • Cidel Bank Canada
  • Citco Bank Canada
  • Citibank Canada Ltd
  • Citibank N.A., Canadian Branch
  • Comerica Bank
  • Cooperatieve Rabobank U.A.
  • Credit Agricole CIB
  • Credit Suisse AG
  • CTBC Bank Corp (Canada)
  • Deutsche Bank AG, Canada
  • Fifth Third Bank, Canadian Branch
  • First Commercial Bank
  • Habib Canadian Bank
  • HSBC Bank Canada
  • ICICI Bank Canada
  • Industrial & Commercial Bank of China (Canada)
  • J.P. Morgan Bank Canada
  • JPMorgan Chase Bank, Toronto Branch
  • KEB Hana Bank Canada
  • M&T Bank
  • Maple Bank GmbH (in liquidation)
  • Mega International Commercial Bank (Canada)
  • Mizuho Corporate Bank, Ltd. (Canada)
  • Mizuho Bank, Ltd., Canada Branch
  • MUFG Bank Ltd., Canada Branch
  • MUFG Union Bank, N.A.
  • Natixis Investment Managers Canada LP
  • Northern Trust Company
  • PNC Bank Canada Branch
  • SBI Canada Bank
  • Shinhan Bank Canada
  • Silicon Valley Bank
  • Societe Generale (Canada)
  • State Street Bank and Trust Company
  • Sumitomo Mitsui Banking Corp, Canada Branch
  • U.S. Bank, N.A., Canada
  • UBS AG, Canada Branch
  • UBS Bank (Canada)
  • United Overseas Bank Limited
  • Walmart Canada Bank
  • Wells Fargo, Canada
  • Wells Fargo Bank N.A., Canadian Branch

Major Local Banks

The major local banks operating in Canada are known as the “Big Six.” These include:

  • Royal Bank of Canada (RBC)
  • Toronto-Dominion Bank (TD)
  • Scotiabank
  • Bank of Montreal (BMO)
  • Canadian Imperial Bank of Commerce (CIBC)
  • National Bank of Canada

Other significant local banks include the Laurentian Bank of Canada, Canadian Western Bank, and Desjardins Group, which operates a network of caisses populaires primarily in Quebec.

Payment Tools

The B2C payment tools available in Canada are Global Digital Disbursements, available through Bank of America’s CashPro platform, Interac e-Transfer offered by Interac Corp, and card payment options such as Visa, MasterCard, and American Express.


Cryptocurrencies are accepted in Canada. They are classified as commodities, implying that they are legal to buy and use as digital currency, even though they are still not recognized as legal tender. Crypto transactions can be used to purchase goods and services online or with merchants that accept them.

It is possible to pay employees with cryptocurrency in Canada, but it comes with certain considerations and potential risks.

The Canada Revenue Agency (CRA) considers cryptocurrency a barter transaction for income tax purposes. Employers must still comply with the CRA rules on deductions at source, remittances, and report employee earnings in Canadian dollars.

Employees receiving their pay directly through Bitcoin would face additional risks. According to the CRA, paying with Bitcoin is a barter transaction involving exchanging goods or services. In other words, bitcoin is considered a “good” and not a currency.

Employers that provide any compensation in the form of cryptocurrency should have the recipient employees sign written agreements confirming their consent to the arrangement, specifying which party is responsible for any exchange or broker fees, and informing the employees about and disclaiming employer responsibility for the potential risks that may flow from receiving their pay in cryptocurrency.

It’s important to note that the legal and tax implications of paying employees in cryptocurrency can be complex and vary depending on the specific circumstances, so it’s recommended to consult with a legal or tax professional for advice.

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