What is a payroll deductions account
A payroll deductions account is an account number assigned to either an employer, a trustee, or a payer of other amounts for employment to identify themselves when dealing with the Canada Revenue Agency.
This 15-character payroll deductions account number contains the 9-digit business number (BN). The BN is a unique federal government numbering system that identifies your business and the various accounts you maintain. The payroll deductions account number consists of:
- 9-digit BN
- 2-letter code for the type of program (for a payroll deductions program, the letters are RP)
- 4-digit reference number to identify each account in a program a business may have
Depending on the type of business you have, you may need to register other types of programs accounts or open a separate payroll deductions account. The 9-digit business number will not change, but other letters or reference numbers will be added to the BN.
Example
A company requires a GST/HST and two payroll accounts. The account numbers would be:
| Account type | Account number |
|---|---|
| Business number | 12345 6789 |
| GST/HST account | 12345 6789 RT 0001 |
| Payroll deductions account 1 | 12345 6789 RP 0001 |
| Payroll deductions account 2 | 12345 6789 RP 0002 |