Changing the payroll frequency requires understanding CPP contributions and issuing ROEs for all employees. We advice you not to change the frequency mid-year due to potential CPP/QPP over/under exemptions, which may result in fines or interest. If you proceed, it's recommended to do it between payroll years.
Additionally, issuing ROEs for all affected employees is required by Service Canada before making the change. Follow our guide on issuing ROEs. Specify termination reason as "code K- Other" and manually enter "Change in Pay Period Type" in block 18 of each ROE.
To change how often you pay your staff or move staff from one frequency to another:
A. Go to Employees.
B. Click the Arrow to get to the different Team categories.
C. Select Off-Boarding.
D. Click the ellipses on the end of the employee line in the Off-Boarding Dashboard.
E. Select Re-hire.
F. Input your new hire date.
G. Click Re-Hire.
Note: Usually the employee's EI history clears the day after termination because Service Canada has their information.
H. Return to the Employees list.
I. Click the Ellipses.
J. Select Profile.
K. Click Payroll.
L. Go to the Payment Structure Page.
M. Click on Pays/Year and change the Pays/Year.
To make all new employee default to the new frequency:
N. Go to Company Settings.
O. Click Payroll Options.
P. Change the company's Number of Pays Per Year to start new pay frequency for all the new employees.
IMPORTANT: If you made this change mid-year (which we strongly advise against), ensure your accountant or bookkeeper reviews the amounts before your final pay of the year to avoid CPP/QPP over or underpayments due to the exemption changes.