Running payroll manually is a special kind of chaos, and for Canadian small businesses specifically, the rules have only gotten more complex — CPP and EI rates, T4 and ROE filing, and provincial variations all have to be right every single pay run.
The good news is that payroll software built for Canadian businesses is no longer expensive relative to the risk it removes. Most platforms now price on a base monthly fee plus a per-employee add-on, which makes the real cost easy to estimate once you know your headcount and pay frequency. This guide breaks down what that actually looks like for a small Toronto business in 2026, what pushes the price up, and what to check before you commit to a platform.
Typical Costs by Team Size
| Team Size | Typical Monthly Cost | Notes |
|---|---|---|
| 1–5 employees | $36–$60/month | Entry-tier Canadian platforms run roughly $20/month base plus $4–$6 per employee |
| 5–10 employees, monthly pay runs | $60–$100/month | A single monthly pay run keeps costs on the lower end of most pricing tiers |
| 10 employees, bi-weekly pay runs | $90–$140/month | Weekly or bi-weekly pay frequency typically moves a business to an "unlimited runs" tier |
| 15–30 employees | $150–$350/month | Larger platforms with integrated HR and benefits sit at the higher end of this range |
| Full accounting + payroll bundle | $75–$180+/month | Bundled plans through platforms like QuickBooks add bookkeeping on top of payroll |
Watch the billing model as closely as the headline price. A low base fee with a per-pay-run charge can end up costing more than a flat monthly tool once you're running weekly payroll — 52 runs a year adds up fast on a per-run structure.
What Should Be Included
CPP, EI, and tax calculations
Automatic calculation of Canada Pension Plan, Employment Insurance, and federal/provincial tax withholding using current rates is table stakes — confirm the platform keeps these current without a manual update on your end.
CRA remittances and T4/T4A filing
The platform should handle or pre-fill CRA remittances and generate T4 and T4A slips at year-end — this is one of the most time-consuming parts of payroll to do manually, and the main reason software pays for itself.
Records of Employment (ROE)
When staff leave, an ROE needs to be generated and filed with Service Canada. Confirm this is built into the platform rather than a separate manual process.
Direct deposit and self-service
Reliable direct deposit and an employee self-service portal for pay stubs and tax slips are standard on nearly every platform in this price range — treat their absence as a sign to look elsewhere.
Pro tip: If your accounting already runs through Xero or QuickBooks Online, prioritize a payroll platform with a clean, direct integration. A tool that doesn't sync properly creates manual reconciliation work every single month — work the software was supposed to eliminate.
What Drives the Price Up
Pay frequency
Weekly or bi-weekly payroll runs cost more than monthly, either through a higher-tier flat plan or accumulated per-run charges — factor your actual pay schedule into any comparison, not just headcount.
Multi-province employees
If you employ people outside Ontario, confirm the platform handles multi-province compliance — some tools charge extra for coverage beyond a single province.
Benefits and HR add-ons
Benefits administration, time tracking, and broader HR features push a platform into a higher pricing tier — worth it if you'll use them, an unnecessary cost if you won't.
Contractors alongside employees
Paying contractors often carries a separate per-payee fee on top of employee pricing — confirm how your platform prices a mixed employee-and-contractor payroll before assuming the advertised rate covers everyone.
Red Flags in a Quote
No clear CRA compliance guarantee
The entire point of payroll software is eliminating CRA-penalty risk. A platform vague about how it handles remittances and filings isn't solving the core problem.
Per-run pricing hidden behind a low base fee
A $17/month headline price can turn into $150+/month once weekly per-run charges are added up — always model the cost against your actual pay frequency, not the advertised starting price.
No free trial or month-to-month option
A platform unwilling to let you test its actual workflow before committing is asking you to take a leap of faith with something CRA-penalty-sensitive.
Weak or U.S.-first support for Canadian rules
Some platforms are built primarily for U.S. payroll with Canadian support added on. Confirm current CPP, EI, and provincial tax handling specifically, not just a general "Canada supported" claim.
Per-payout fees on top of the base price
Some platforms, particularly those built for global payroll, charge a flat fee per payout on top of the monthly cost — this adds up quickly for frequent pay cycles and is easy to miss when comparing headline prices.
The Bottom Line
Most small businesses in Toronto should expect to pay somewhere between $40 and $150 a month for payroll software covering 5–15 employees, with the exact number shaped mainly by pay frequency and whether you need benefits or HR features layered on top. A 10-person team on bi-weekly pay is a reasonable middle-of-the-road case at roughly $90–$140 a month.
Compare platforms against your actual pay frequency and province requirements, not just the advertised starting price, and confirm CRA compliance is genuinely built in rather than an afterthought. The software should eliminate penalty risk, not just automate a spreadsheet.
