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Budget 2021 The Government Of Canada Launches Formal Consultations To Streamline Reporting Of Payroll Information

Friday, 16 December 2022 02:39.PM

The Government of Canada is committed to refining the way it delivers programs and services to Canadians and modernizing how businesses provide payroll information to the federal government, while protecting their personal information.

Today, the Canada Revenue Agency (CRA) and Employment and Social Development Canada (ESDC) are launching formal consultations as part of a large scale ePayroll reporting solution project. A key goal of the project is to modernize and simplify how employers report payroll, employment, and demographic information to the Government of Canada. From December 6, 2022 until January 27, 2023, the CRA and ESDC will consult with employers, stakeholder groups, payroll software and service providers, to identify challenges they currently face with payroll reporting and opportunities to improve their experience. In addition to these consultations, individuals will have the opportunity to provide feedback through an online survey.

The CRA and ESDC will consider the input they receive to inform a proposal for a future implementation of a real-time ePayroll system, and ensure that businesses of all sizes benefit from this work, by March 2024. Interested parties can learn more on how to participate in the consultations by visiting the project web page. The CRA and ESDC are committed to conducting an open, fair and inclusive consultation process to help guide its recommendation.

Currently, employers must provide the same or similar information to multiple government departments at different times, such as to the CRA for tax purposes or to ESDC for Employment Insurance benefits. Government requests are also not always aligned to information employers have readily available in their payroll systems. Canadian businesses would benefit from this modernization and streamlining by being able to share information directly with the Government of Canada in one place, reducing duplication and effort, it would also improve the speed and accuracy of delivering services and benefits to Canadians.

"Through this important consultation, we want to hear from businesses, employers, and any interested party. The Agency is committed to hearing the needs of all stakeholders for an ePayroll reporting solution that both reduces the reporting burden on employers and protects the personal information of Canadians."
- The Honourable Diane Lebouthillier, Minister of National Revenue

"The Government of Canada is continuously working to simplify processes to better serve Canadians. The ePayroll reporting solution is expected to reduce the administrative burden for more than a million businesses, while improving the Government's ability to deliver services and benefits for Canadians. As we take another step toward carrying out this project, we recognize the valuable contribution stakeholders at all levels can make in shaping a solution that will directly impact them."
- The Honourable Karina Gould, Minister of Families, Children and Social Development

Quick Facts

• Budget 2021 provided $43.9 million over three years for the CRA and ESDC to explore options for an ePayroll reporting solution that could make it easier and faster to deliver services and benefits to Canadians.
• The consultations surrounding the ePayroll reporting solution will open on December 6, 2022, and will close to input on January 27, 2023.
• The CRA and ESDC have already held informal discussions with interested parties.
• Feedback from the consultations will be posted on Canada.ca.

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