What Is a Payroll Account?
A payroll account is a specific type of account number issued by the Canada Revenue Agency (CRA) to employers, trustees, or anyone paying employment-related amounts (such as salaries, wages, bonuses, or taxable benefits). This account is used to report and remit payroll deductions including income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums.
Structure of a Payroll Account Number
A payroll account number is a 15-character identifier that includes:
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Nine-digit Business Number (BN): A unique identifier for your business across all dealings with the CRA.
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Two-letter program identifier: For payroll accounts, this is “RP”.
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Four-digit reference number: Used to differentiate multiple accounts under the same program.
Format: 123456789 RP 0001
Example
A company may have one BN but multiple program accounts. For example:
| Account Type | Account Number |
|---|---|
| Business Number (BN) | 123456789 |
| GST/HST Account | 123456789 RT 0001 |
| Payroll Account 1 | 123456789 RP 0001 |
| Payroll Account 2 | 123456789 RP 0002 |
The BN remains the same across all accounts, but the two-letter program code and four-digit suffix distinguish each account.
When Do You Need a Payroll Account?
You need to open a payroll account with the CRA if you:
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Pay salaries or wages
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Provide taxable benefits or allowances
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Deduct CPP, EI, or income tax from payments
Summary
A payroll account helps the CRA track payroll-related tax obligations. While your Business Number stays the same, each program (like payroll or GST/HST) has its own unique suffix to identify the account purpose.
Let me know if you’d like to know how to register a payroll account with CRA or manage it online.