Your Alberta Payroll Compliance Checklist

Alberta payroll compliance comes with its own rules, from vacation pay to daily overtime and statutory holiday eligibility. This checklist keeps your business compliant and your team paid accurately. Prefer paper? Download the printable PDF here.

Let’s get started.

Step 1: Obtain a Payroll Account Number (BN)

Registering for a payroll account with the Canada Revenue Agency (CRA) is a crucial step for Canadian small business owners who hire employees. The process ensures you can properly deduct and remit source deductions like Canada Pension Plan (CPP), Employment Insurance (EI), and income tax

• Register for a Business Account Number (BN) if you have not already
• Gather the required documentation for your payroll account setup
• Register for a payroll account online:
• After you register
  • If eligible, you will receive a remittance form.
  • New employers are generally considered regular remitters. Your remitter schedule will default to monthly unless the CRA tells otherwise. 

Recommended Read: How to Contact the CRA, Simplified

Step 2: Register For Applicable Employer Tax Accounts

Workers Compensation Board (WCB)

All provinces and territories have a workers’ compensation board or commission that provides no-fault insurance for employees who are injured on the job. 

In Alberta, when you hire workers you must contact the WCB office within 15 days of the workers’ start date, or your account will be subject to a late registration penalty. 

Below is a checklist to get you started:

• Use WBC Alberta’s Business Test Guide to check account eligibility
• Review the list of exempt activities. If you’re in an exempt industry, you can still voluntarily apply for workers’ compensation coverage to protect your workers.
• Review WCB Alberta’s guide for New Account Holders
• Register for a myWCB account
• Download your WCB – Alberta Employer Handbooks
  • Employer handbook 
  • Worker Handbook 

Recommended Read: What You Need to Know About Employees vs. Contractors

Step 3: Set Up Your Payroll System

• Choose a payroll system to meet your needs (and keep you compliant.)
• Gather the required information to start processing payroll 
• Choose the frequency to pay your employees (weekly, biweekly, semi-monthly, or monthly)
• Sign necessary authorizations required (eg. banking/billing, ROE SAT)
• Distribute and collect TD1 and TD1AB forms from every employee

Recommended Read: 8 Must-Ask Questions When Assessing Your Current Payroll Solution 

Step 4: Calculate Payroll Taxes

Ensure that your payroll system of choice can calculate, deduct (and remit) the following: 

• Federal Income Tax
• Canada Pension Plan (CPP/CPP2) contributions
• Employment Insurance (EI) premiums
• Provincial Employer Taxes (ex. WCB)
• Manage additional deductions, if required (e.g. RRSPs, 3rd party benefits) 

Recommended Read: Payroll Remittance Schedules and Deadlines: A Complete Guide

Step 5: Manage Important Payroll Requirements

Alberta employers are governed by Alberta Employment Standards – Rules. They cover important rules relating to: laws for minimum wage, overtime, holidays, job-protected leaves, vacations, hours of work, earnings, youth workers and termination.These rules encompass many aspects of payroll.

Statutory Holidays

• Determine applicable Statutory General Holidays for Alberta
  • Review list of optional holidays.
• Review Statutory holiday eligibility requirements for your employees
• Understand how various days of work and average daily wage impact holiday pay.

Recommended Read: Statutory Holidays Pay in Canada (2025 Update) 

Overtime Rules

• Determine how overtime is calculated 
  • Double check exceptions list when collective/other agreements are in place.
• Review employee overtime eligibility
• Review: Paying out and banking overtime
• Understand exceptions for overtime pay

Recommended Read: Overtime Pay Rules in Canada Explained  

Minimum Wage

• Minimum wage rates in Alberta are as follows:
  • Most employees (general minimum wage) – $15/ hour
  • Students under 18 – $13/hour (restrictions apply)
  • Employees entitled to the weekly minimum wage rate – $598 per week
  • Domestic employees (living in their employer’s home) – $2,484/month
• Understand the exempt occupations from minimum wage standards.

Recommended Read: Minimum Wage by Province 2025

Vacation Pay

• Use this Easy-Check tool to find out if your business meets the basic requirements for Alberta’s employment standards for vacations and vacation pay
• Review: Alberta’s employment standards tool kit for employers. Module 7 : vacations and vacation pay
• Determine which wages are not considered vacationable earnings. 
• Understand the exemptions from the minimum standards for vacations and vacation pay
• Understand Vacation time and Vacation pay entitlements and how they are calculated

Recommended Read: Managing Vacation Pay in Canada (2025 Update) 

Terminations

• Use this Easy-Check tool to find out if your business meets the basic requirements for Alberta’s employment standards for termination and temporary layoff.
• Review: Alberta’s employment standards tool kit for employers. Module 9 : termination of employment
• Read: What does the Alberta Human Rights Act say about terminations of employment? 
• Review: Important details for termination notices.
  • Example: Employee earnings must be paid within 10 calendar days after the end of the pay period in which termination occurred, or 31 calendar days after the last day of employment.

Recommended Read: What is a Record of Employment (ROE)?

Final Tips

• Stay subscribed to CRA payroll updates
• Connect online with an Alberta Employment Standards expert.
• Use Alberta Employment Standards and OHS Employer online services. Work with a bookkeeper or accountant who is certified in Canadian Payroll
• Use payroll software to automate compliance

Want Payroll That’s Alberta Compliant Without the Stress?

Wagepoint helps Alberta small businesses automate payroll with friendly support and easy software. Learn more and book a demo here. 

Written by Bianca Mueller, CPB, PCP

Bianca is a fintech socialite, award-winning Certified Professional Bookkeeper and Wagepoint’s Community Manager. When she’s not nurturing Wagepoint’s bookkeeping and accounting partner relationships, you might find her nursing a glass of wine in her vegetable garden.

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