What Is a CRA Single-1 Account for Payroll?
Learn about the CRA Single-1 payroll account: what it is, how to get it, and how to manage Canadian payroll deductions.
A Canada Revenue Agency (CRA) “single-1 account” is a specific program account linked to a business’s Business Number (BN) and used for payroll. This account is fundamental for Canadian businesses that employ individuals, serving as the official channel for managing employment-related tax obligations.
Understanding the CRA Payroll Account
A CRA Payroll Account is a specialized account allowing employers to manage and remit various source deductions from employee wages. Its purpose is to facilitate the collection of income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums directly from employee paychecks. These deductions are then remitted to the CRA on behalf of the employees.
Each payroll account is identified by a 15-character number. This number begins with the business’s 9-digit Business Number (BN), followed by “RP” as the program identifier for payroll. The final four digits are a reference number, with “0001” indicating the first payroll account established by the business, aligning with the “single-1” concept. Any entity paying salaries, wages, commissions, bonuses, or providing taxable benefits to employees is considered an employer and must register for this account. This obligation extends to various business types, including those employing domestic workers such as nannies or caregivers.
Obtaining a CRA Payroll Account
Before applying for a CRA Payroll Account, businesses need to have their Business Number (BN) established, as the payroll account links to this identifier. The registration process requires specific business information, including the legal name, operating or trade names, and both physical and mailing addresses. Details about the primary business activity and the estimated date of the first payroll are also necessary.
Information regarding employees, such as their Social Insurance Numbers (SINs) and completed TD1 forms, which determine the amount of income tax to deduct, will also be required. Registration for a payroll account can be completed online via the CRA’s My Business Account portal or Business Registration Online (BRO) system. Alternatively, businesses can register by phone through the CRA’s business enquiries line or by submitting a completed Form RC1B by mail.
Remitting Source Deductions
Once a CRA Payroll Account is established, employers are responsible for calculating and remitting the source deductions withheld from employee pay. The frequency of these remittances depends on the business’s average monthly withholding amount (AMWA) from prior calendar years. Common frequencies include quarterly, monthly, or accelerated remittances, which apply to businesses with higher AMWA.
Payments to the CRA can be made using several methods:
Online banking, by adding the CRA as a payee.
The CRA’s My Payment service for direct bank account payments.
Pre-authorized debit options through financial institutions or CRA online portals.
In person at a Canadian financial institution using a remittance voucher.
By mail with a cheque.
At the end of the calendar year, employers must file T4 information returns for each employee, summarizing their earnings and deductions.