Payroll in Canada isn’t just about getting employees paid, it’s about handling CRA remittances, staying compliant with provincial regulations, and making sure your team feels supported with timely payments and benefits.
We’ve ranked the top 5 payroll software options for Canadian businesses in 2025 based on functionality, compliance, pricing, and ease of use.
Top Payroll Softwares in Canada
Rank | Platform | Best for | Starting Price (CAD) |
|---|---|---|---|
1 | Best for Accounting Integration | $40 CAD/month + $6/employee | |
2 | Simple payroll for hybrid teams | ~$55 CAD/month + $8/employee | |
3 | All-in-one UX, global contractors | ~$55 CAD/month + $8/employee | |
4 | Full integration with accounting | $30/month + $4/employee | |
5 | Easy, local payroll | $22 base + $2/employee/payrun | |
6 | HR + Payroll + Compliance in one platform | Custom pricing |
1. Xero – Best for Accounting Integration
Founded in New Zealand in 2006, Xero has become one of the world’s leading accounting platforms, serving millions of small businesses across Canada, the U.K., Australia, and the U.S. While originally known for its intuitive cloud-based accounting tools, Xero has steadily expanded its global payroll functionality — and for Canadian small businesses, it’s an excellent all-in-one choice for bookkeeping, invoicing, and paying staff.
Xero Payroll brings automation, simplicity, and transparency together in one dashboard. Businesses can manage payroll runs, calculate deductions, and ensure compliance with CRA requirements while keeping all their accounting and financial data in the same ecosystem. For teams already using Xero, it’s a natural upgrade — everything syncs automatically, from pay runs to expense claims and reports.
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Pricing:
Starts at around $40 CAD/month + $6 CAD per employee. Higher-tier plans add more reporting and HR features.
Best For:
Canadian small businesses already using Xero for accounting and looking to manage payroll, compliance, and reporting from one central platform.
Why We Picked It:
Xero Payroll offers the perfect balance of automation, accuracy, and ease of use. It’s built for business owners who want a complete financial system under one roof: from invoices and expenses to payroll and tax filings. With its clean interface and world-class support, Xero remains one of the smartest choices for Canadian businesses.
If you’re considering trying it out, Xero is currently offering
90% off for the first four months if you go through the link below.
2. OnPay – Best for Affordability and Tax Compliance
OnPay isn’t the flashiest payroll platform, but that’s exactly why some business owners love it. It keeps things simple, affordable, and focused on doing payroll and taxes right, without throwing in a bunch of features you’ll never use. This is why it's one of the best one out there.
While it’s still mostly geared toward the US, many Canadian businesses that work with contractors or freelancers across North America find it a helpful tool. The interface is clean, onboarding is fast, and customer support is refreshingly responsive.
I often recommend OnPay to businesses in specific industries like farms, dental clinics, or nonprofits. These are the kinds of organisations that need flexibility without the complexity or cost of bigger systems. Just keep in mind that OnPay won’t handle CRA remittances directly, but if you’re dealing with hybrid or cross-border payroll, it’s a solid and easy-to-manage choice.
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Pricing:
$40 USD/month + $6 per employee
Best For:
Businesses needing affordable tools for US/Canada contractor payments.
Why We Picked It:
OnPay is a great no-frills payroll system, especially for niche industries or small teams doing cross-border work. If you want to handle the basics without complexity, it’s a smart choice. Just be sure you can handle the Canadian tax side separately.
3. Gusto – Best for Simplicity and Tax Accuracy
Even though Gusto is primarily US-based, it’s steadily becoming a favourite among Canadian startups. This is especially true for those with hybrid teams, freelancers, or remote staff spread across borders.
What makes Gusto so appealing is how effortless it makes payroll and HR. It’s not just about paying people. It’s about automating all the complicated, error-prone steps like taxes, onboarding, and benefits. I've worked with business owners who were nervous about setting up payroll for the first time, and Gusto turned it into something they could handle without a hitch.
Even if you don’t have an HR team, Gusto gives you everything you need in one sleek, intuitive dashboard. And for businesses working with international contractors or US entities, it’s one of the easiest platforms to bridge that gap. It’s a smart pick for modern Canadian companies thinking globally.
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Pricing:
Starts at $40 USD/month + $6 per employee
Best For:
Small Canadian businesses with cross-border employees or contractors, or those looking for a slick, intuitive payroll/HR tool.
Why We Picked It:
Gusto is a great choice for forward-thinking startups that want everything, from payroll to HR, under one roof. While full CRA support is still maturing, it’s ideal for global or hybrid teams working with international contractors and US affiliates.
4. QuickBooks Payroll (Canada) – Best for Accounting Integration
If you’re already using QuickBooks Online for bookkeeping, adding QuickBooks Payroll Canada is almost an automatic next step. The integration between the two platforms is seamless, so there’s no need to re-enter employee information or manually track payroll expenses.
Everything from gross pay to tax deductions syncs smoothly, which can seriously cut down on errors and save time, especially around tax season. One of the biggest benefits of QuickBooks Payroll Canada is that it’s built with full CRA compliance in mind. That means it handles remittances, generates T4 slips, and takes care of ROEs automatically.
It’s not the cheapest option, but for small businesses that prioritise efficiency and automation, the convenience is worth the price. If you’re already in the QuickBooks ecosystem, this payroll add-on will make your workflow faster, more accurate, and less stressful.
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Pricing:
Starts at $30 CAD/month + $4 per employee (discounts often available)
Best For:
Canadian businesses that already use QuickBooks and want a seamless payroll add-on.
Why We Picked It:
QuickBooks Payroll Canada makes payroll and accounting sync effortlessly. From CRA remittances to ROEs, it covers all your bases—and the mobile app makes it easy to run payroll on the go.
5. Wagepoint – Best Made-in-Canada Payroll Solution
Wagepoint is one of the most trusted names in Canadian payroll. Built in Canada for Canadian businesses, it’s designed specifically to handle the unique rules and requirements of our tax system.
Everything from CRA remittances to T4 generation is built in and automated. You won’t need to worry about whether something is supported in your province or if statutory holidays are set up correctly—it just works.
Wagepoint also stands out for its fantastic customer service. The support team understands Canadian payroll laws and is quick to help if anything goes wrong. It’s not packed with extra bells and whistles, but that’s what makes it so efficient. For small businesses that want reliable, affordable, and easy-to-use payroll software made for Canada, Wagepoint is a top pick.
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Pricing:
$22 CAD base + $2 per employee per pay run
Best For:
Small Canadian businesses looking for simple, fully compliant payroll.
Why We Picked It:
Wagepoint is a no-brainer for Canadian companies. It’s built for your local tax rules, backed by friendly support, and perfect for small businesses that don’t want to fuss with US-based platforms.
6. Payworks – Best for HR + Compliance in Canada
Payworks is a powerful, full-service payroll and HR solution made in Canada. It’s a great fit for businesses that are growing or operate in highly regulated industries, offering more advanced features than basic payroll tools.
What makes Payworks stand out is its all-in-one approach. You can manage payroll, HR records, time tracking, scheduling, and even benefits administration from one central platform. It’s all built with Canadian compliance in mind and backed by local expertise.
This isn’t a basic starter tool. It’s built for businesses that expect to scale or that already need complex support across multiple provinces or locations. While it may take a bit more time to set up and pricing depends on your specific needs, Payworks is a smart long-term investment for businesses that want to do things right from the start.
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Pricing:
Custom pricing; typically mid-range for Canadian providers
Best For:
Small to mid-size Canadian businesses ready to scale with HR and payroll together.
Why We Picked It:
Payworks is a great pick if you’re ready to move beyond just payroll. With HR tools, scheduling, and benefits in one place, it’s a Canadian provider built for long-term growth—and backed by solid local support.
Top 5 Payroll Softwares in Canada
- 1Xero: Best Overall
- 2OnPay: Best for Affordability and Tax Compliance
- 3Gusto: Best for Simplicity and Tax Accuracy
- 4QuickBooks Payroll: Best for Accounting Integration
- 5Wagepoint: Best Made-in-Canada Payroll Solution
- 6Payworks: Best for HR + Compliance in Canada
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