Best Payroll Software in Canada (2026)

Hiring your first employee in Canada means taking on a set of obligations that do not exist for a sole proprietor: withholding CPP, EI, and income tax, remitting it to the CRA on a fixed schedule, issuing T4 slips by the end of February, and filing a Record of Employment when someone leaves. Payroll software exists to make those jobs automatic. This guide compares the tools that actually run Canadian payroll for small employers, with a close look at a key detail for many buyers: whether the tool handles Quebec.

How we evaluated

This is a research-based review. We did not run payroll in any of these tools. We compared each one against the same checklist using vendor pricing pages, product pages, and help documentation, and checked the payroll rules against canada.ca:

• Price in CAD, split into the monthly base fee and the per-employee fee
• Whether CRA source deduction remittances are made for you
• T4 and T4A preparation and filing, and Record of Employment (ROE) support
• Direct deposit
• Quebec support (Revenu Québec remittances, RL-1 slips, QPP, QPIP)
• Vacation pay handling and accounting integrations (QuickBooks Online, Xero)

Prices are regular list prices in CAD with monthly billing, checked September 2026. Where a vendor shows a promotion, we say so and quote the regular price instead. These plans also appear in our Canadian small business software price index, alongside accounting and invoicing software. Payroll tax rules are general information, not advice. Talk to an accountant or payroll professional about your own situation, especially before your first pay run.

Feature	Wagepoint	QuickBooks Payroll	Payworks	Knit	Wave Payroll	Rise
Base fee (CAD/month)	$20	$30	Quote	$40	$25	Not published
Per employee (CAD/month)	$4	$5	Quote	$6	$6	$8
Automatic CRA remittances
T4 slips
Record of Employment
Quebec employees
QuickBooks Online and Xero sync		QuickBooks only			Wave only
Free trial	14 days	30 days	Not stated	30 days	30 days	Not stated

What Canadian payroll software must handle

Before comparing tools, it helps to know what the software is actually doing for you. These are the core obligations for an employer outside Quebec, with 2026 figures from the CRA.

CPP and CPP2. For 2026, employees and employers each contribute 5.95% on pensionable earnings between the $3,500 basic exemption and the $74,600 maximum, up to $4,230.45 each for the year. On earnings between $74,600 and $85,000, a second contribution (CPP2) of 4% applies, up to $416 each. Payroll software tracks year-to-date earnings so contributions stop at the right point.

EI. The 2026 employee rate is 1.63% on insurable earnings up to $68,900, for a maximum employee premium of $1,123.07. The employer pays 1.4 times the employee premium.

Income tax. Federal and provincial tax is withheld based on the employee's TD1 claim amounts and the CRA's payroll tables, which change every year. Good software updates these tables for you.

Remittance deadlines. Your remitter type depends on your average monthly withholding amount. Regular remitters pay by the 15th of the following month. Quarterly remitters (new small employers can qualify) pay by April 15, July 15, October 15, and January 15. Larger employers become accelerated remitters with twice-monthly or more frequent deadlines. Look for software that tracks your schedule and pays on time automatically.

T4 slips. T4 slips and the T4 Summary are due by the last day of February for the previous calendar year. Contractors you pay may need T4A slips.

Records of Employment. When an employee has an interruption of earnings (they quit, are laid off, or go on leave), you must issue an ROE to Service Canada. For electronic ROEs on a weekly, biweekly, or semi-monthly pay cycle, the deadline is 5 calendar days after the end of the pay period in which the interruption occurred.

On top of this come provincial items that vary: workers' compensation premiums, employer health taxes in some provinces, and vacation pay and statutory holiday rules set by provincial employment standards.

1. Wagepoint: best for most small Canadian employers

Wagepoint is a Canadian company that does payroll and nothing else, and its pricing is among the simplest on this list. The Solo plan is $20/month plus $4 per employee or contractor, with one payroll run per month. The Unlimited plan is $40/month plus $6 per employee or contractor, with unlimited pay runs. Wagepoint bills in Canadian dollars. By its own example, 5 employees on Unlimited comes to about $70/month. There is a 14-day free trial.

Both plans include direct deposit, CRA remittances made on your behalf each time you run payroll, T4 and T4A slips, and ROE submissions, with year-end forms included at no extra charge. Wagepoint documents automatic vacation accrual and statutory holiday calculations, and it syncs with QuickBooks Online, Xero, and FreshBooks.

The big change in 2026 is Quebec. On September 22, 2026, Wagepoint announced full Quebec payroll support: Revenu Québec remittances, QPP, QPP2, QPIP, CNESST and Health Services Fund calculations, RL-1 reporting, and a French interface, at no added cost. Before that, Wagepoint served employers outside Quebec. Because this launch is brand new, Quebec employers may want to confirm the details with Wagepoint before switching mid-year.

The Solo plan includes one pay run per month, so if you pay biweekly, choose Unlimited.

2. QuickBooks Online Payroll: best if you already use QuickBooks

If your books are already in QuickBooks Online, adding its payroll keeps wages, deductions, and remittances in the same ledger with no sync to manage. QuickBooks Payroll in Canada has three tiers at regular list price: Core at $30/month plus $5 per employee, Premium at $55/month plus $8 per employee, and Elite at $80/month plus $15 per employee. At the time of checking, QuickBooks was advertising 90% off the base fee for 6 months (a promotion, not the ongoing price). There is a 30-day free trial.

All tiers include auto payroll, tax forms, payroll reports, Records of Employment, workers' compensation, and an employee portal. Core uses 2-day direct deposit. Premium and Elite add faster direct deposit, prioritized support, and time tracking, and Elite adds geofencing and project tracking. QuickBooks states that it e-files and remits payroll taxes with the CRA or Revenu Québec, and prepares T4, T4A, and RL-1 slips. Its help documentation for RL-1 slips describes downloading an XML file and uploading it to Revenu Québec yourself, so Quebec year-end involves a manual step.

Payroll can be bought on its own, but the value is highest when paired with QuickBooks Online accounting, which is a separate subscription. For a side-by-side look at the accounting product, see FreshBooks vs QuickBooks in Canada and our best accounting software for Canada.

3. Payworks: best for Quebec employers and growing teams

Payworks is a Canadian payroll and HR provider. It does not publish prices. You get a price through its instant quote tool, so we compare it here on features rather than cost.

What Payworks does document is broad compliance coverage. Its "Auto Filing" handles tax remittances and WCB premiums, and ROEs are submitted to Service Canada. For Quebec employers, Payworks states that it remits federal tax and EI to the CRA, and provincial tax, QPP, QPIP, the Health Services Fund, and CNESST to Revenu Québec. It also supports multiple locations and business numbers, time and absence modules, and QuickBooks and Xero integrations, and it describes a Canadian-based client service team.

This makes Payworks a strong fit for a business that already has Quebec staff, or one that expects to add HR, time tracking, and more complex setups as it grows. Pricing is by quote, so request one to compare it with the flat-rate tools above.

4. Knit: best for small teams outside Quebec

Knit is a Canada-only payroll and HR tool with published CAD pricing. Lite is $40/month plus $6 per employee, and Complete is $50/month plus $8 per employee. A managed Concierge plan is quote-based. There is a 30-day free trial with no credit card required.

Every plan includes direct deposit, year-end T4s, ROEs, and CRA source deduction remittances. Complete adds WCB, WSIB, and EHT remittances, which is useful in Ontario, where employer health tax applies above an exemption threshold. Time and attendance is a $4 per person add-on. Knit integrates with QuickBooks Online and Xero.

Knit is for employers outside Quebec: it states that it does not currently handle Quebec payroll. If all your employees are outside Quebec and you want workers' compensation and EHT remittances handled too, Complete covers more than some competitors' base plans.

5. Wave Payroll: best for Wave accounting users outside Quebec

Wave is best known for free accounting software, and its payroll is a paid add-on at $25/month plus $6 per active employee and $6 per independent contractor paid, in CAD. There is a 30-day free trial.

Wave's tax service handles CRA remittances for you once you are approved for its direct deposit, and it includes unlimited direct deposits. Its help centre says it supports monthly remittances only. It generates T4 and T4A slips, but you file them with the CRA yourself using the XML file Wave produces. Wave can also submit ROEs on your behalf after you sign an authorization addendum in your account. Otherwise, you file ROEs with Service Canada yourself.

Wave states that payroll is available in all provinces and territories except Quebec. It also makes most sense if you already keep your books in Wave, since payroll sits alongside your Wave bookkeeping. If you do not use Wave, Wagepoint's Solo plan costs less for a small team and connects to more accounting tools.

6. Rise: best for payroll plus HR in one Canadian platform

Rise is a Canadian payroll and HR platform. Its Start plan is listed at $8 per employee per month in CAD, but every tier is also subject to a base fee that Rise does not publish. The Grow and Optimize plans are quote-based. Rise states there are no long-term contracts.

On the payroll side, Rise documents automatic tax remittances, T4, T4A, and RL-1 filing, ROE e-filing through Service Canada's ROE Web, direct deposit, vacation pay automation, and statutory holiday handling across all provinces and territories. It integrates with QuickBooks Online and Xero, and adds HR features such as time off, scheduling, and benefits.

Because the base fee is not published, get a quote and compare the total against Wagepoint or Payworks for the same headcount.

Other options: ADP, Employment Hero, and Gusto

ADP Canada sells small-business payroll bundles for 1 to 49 employees under its Workforce Now On the Go packages. Its pages list tax filing and payment, year-end T4 and Relevé slips, and Records of Employment. Pricing is quote-based and not published, and ADP was advertising 3 months of free payroll processing at the time of checking (a promotion). It is worth a quote if you want a large provider with dedicated service.

Employment Hero (which absorbed Humi in Canada) is an HR platform first. Its Canadian pricing page shows payroll as an add-on at $7 per employee per month (minimum $70/month) on top of an HR plan (the page does not state the currency), and plans require a minimum of 10 users. That minimum suits teams of 10 or more rather than a first hire, and its payroll covers T4, T4A, ROE, and RL-1 slips.

Gusto does not run Canadian payroll for Canadian businesses. Its Canada offering is aimed at US companies paying Canadian contractors or hiring Canadian employees through an employer of record service powered by Remote. If you are a Canadian business, choose a Canadian payroll tool instead.

How to choose payroll software in Canada

Start with Quebec. If you have or expect employees in Quebec, focus on tools with Quebec support rather than Knit or Wave. Payworks has the longest documented Quebec coverage, Wagepoint added it in September 2026, and QuickBooks remits to Revenu Québec and has you upload the RL-1 file yourself.

Do the math for your headcount. Per-employee fees add up faster than base fees. For 5 employees at list price: QuickBooks Core is $55/month, Wave is $55/month, Wagepoint Unlimited is $70/month, and Knit Lite is $70/month. Wagepoint Solo is $40/month if you pay once a month.

Match your pay frequency. Biweekly payroll means 26 runs a year. Make sure your plan allows unlimited runs (Wagepoint Solo includes one run a month).

Check provincial extras. If you want WCB or EHT remittances handled, confirm they are in your tier. Knit includes them only on Complete, and Payworks lists WCB premiums in its auto filing.

Keep your accounting in mind. QuickBooks users get the tightest link with QuickBooks Payroll, and Wave users with Wave Payroll. If you use Xero or FreshBooks, look at Wagepoint, which syncs with both.

If you are still setting up the business itself, our guides to sole proprietorship vs corporation and registering for GST/HST cover the steps that usually come before your first hire.

Sources

• CRA: CPP contribution rates, maximums and exemptions (checked September 2026)
• CRA: Second additional CPP (CPP2) contribution rates and maximums (checked September 2026)
• CRA: EI premium rates and maximums (checked September 2026)
• CRA: When to remit (pay) payroll deductions (checked September 2026)
• CRA: When to file information returns (checked September 2026)
• Service Canada: How to complete the Record of Employment form (checked September 2026)
• Wagepoint pricing and Wagepoint payroll features (checked September 2026)
• Wagepoint Quebec payroll launch announcement (checked September 2026)
• QuickBooks Canada payroll pricing and QuickBooks RL-1 help article (checked September 2026)
• Payworks payroll and Payworks on Quebec payroll legislation (checked September 2026)
• Knit pricing and Knit vs Nethris (Quebec availability) (checked September 2026)
• Wave Payroll and Wave help: submitting ROEs (checked September 2026)
• Rise pricing and Rise payroll (checked September 2026)
• ADP Canada small business bundles (checked September 2026)
• Employment Hero Canada pricing (checked September 2026)
• Gusto: hiring in Canada (checked September 2026)