Canadian payroll operates at both federal and provincial levels, requiring systems that calculate CPP, EI, income tax, and provincial health premiums accurately. Getting this right from day one prevents costly migrations that impact 40% of scaling startups.

EIM's 3-Tier Payroll Selection Framework:

Tier 1 (Under $10K/month): Compliance Foundation, Wagepoint wins here. Built for Canadian small businesses, handles all CRA remittances automatically, and generates T4s and ROEs without the learning curve.

Tier 2 ($100K+/month): Scale Readiness
Humi bridges payroll + HR. Perfect for multi-province teams needing employee onboarding, time-off tracking, and document management in one place.

Tier 3 (Growth Infrastructure): Advanced Capabilities ADP for enterprise-grade infrastructure. Overkill for small teams but valuable for rapid scaling and cross-border hiring.

The classification trap: Employees need source deductions and regular filings. Contractors don't. Misclassify someone and you're liable for back taxes, CPP contributions, and penalties.

Key insight: The best system gets the job done without slowing you down. If you're spending more than a few hours monthly on payroll or your remittance process feels manual, there's a better way.

Your payroll choice should support immediate needs AND future growth without costly mid-year migrations that derail growth.