What Must Be on a Canadian Paystub? Employment Standards Requirements

In Canada, employment standards legislation (provincial) and CRA payroll rules both impose requirements on what information a paystub must contain. If your corporation pays you a salary, you need proper paystubs — both for CRA compliance and for practical purposes like mortgage applications.

Federal CRA requirements

CRA requires employers to keep records of all payroll deductions and remittances. While CRA doesn't prescribe an exact paystub format, your records must be able to support your T4 filings. That means every pay period's record should show:

• Gross employment income paid
• CPP contributions withheld
• EI premiums withheld
• Federal income tax withheld
• Net amount paid

Provincial employment standards

Most provinces require employers to provide employees with a written statement of earnings for each pay period. The exact requirements vary by province, but the common elements are:

• Employer's name
• Employee's name
• Pay period (start and end dates)
• Pay date
• Gross earnings for the period
• Each deduction, identified by type and amount
• Net earnings (take-home pay)

British Columbia, Ontario, Alberta, and Quebec all require itemized deductions. Even in provinces with lighter requirements, providing a complete paystub is considered best practice and is expected by lenders and landlords.

Why self-incorporated owners need paystubs

Many self-incorporated Canadians skip formal paystubs, thinking they're just paying themselves informally. This creates problems in several situations:

Mortgage applications: Lenders require proof of employment income. A T4 shows your annual income, but for recent months not yet covered by a T4, lenders want pay stubs showing current salary. Without them, you may not qualify for the amount you need.

Apartment rentals: Landlords in competitive markets want to verify income. Bank statements showing transfers from your corporation aren't always accepted. A paystub from your corporation is much cleaner.

CRA audits: If CRA questions your payroll, having a complete set of paystubs for every pay period is the cleanest way to demonstrate compliance. Missing records can trigger a payroll audit.

Separation or divorce proceedings: Employment income is often used to calculate support obligations. Paystubs provide a contemporaneous record.

What a proper paystub should include

At minimum, every paystub from your corporation to yourself should show:

1. Your corporation's legal name and address 2. Your name as the employee 3. Pay period start and end dates 4. Pay date 5. Gross pay for the period 6. CPP contribution (labeled as such) 7. EI premium (labeled as such) 8. Federal income tax withheld (labeled as such) 9. Any provincial tax or other deductions (labeled individually) 10. Net pay

The deductions should be itemized, not lumped together. A paystub that just shows "gross: $5,000 / deductions: $1,287 / net: $3,713" isn't sufficient — each deduction needs its own line.

Keeping records

CRA requires payroll records to be kept for at least six years. A PDF of each paystub, stored somewhere reliable, is sufficient. Generate them at the time of payment — reconstructing them later from memory is inaccurate and looks suspicious.