Starting in 2025, the Canada Revenue Agency will reinstate penalties for T4A service fee reporting in the trucking industry. Businesses that primarily earn income from freight transportation must issue T4A slips for service payments over $500. While the reporting requirement applies to all industries, stricter enforcement will now target qualifying trucking businesses. Companies should review contractor payments, confirm worker classifications, and ensure proper reporting to avoid penalties.

Ontario has issued a third WSIB surplus rebate, distributing an additional $2 billion to eligible businesses as of October 31, 2025. Starting January 1, 2026, WSIB premium rates will drop again (the 7th reduction in 10 years), reaching the lowest level in 50+ years. To qualify for the rebate, employers must have an active WSIB account with 2024 premium obligations, maintain a clean compliance record, have no disqualifying convictions, and meet strict safety criteria around traumatic workplace fatalities (including affiliated organizations). Because eligibility depends on accurate records, the update is a reminder that payroll accuracy and compliance directly affect rebates, premiums, and cash flow, and payroll software can help keep reporting consistent and audit-ready.

PEI’s Workers Compensation Board (WCB) is distributing $18 million in surplus funds to eligible registered employers. To qualify, employers must report their 2024 actual payroll by December 31, 2025 and remain in good standing with the WCB. Employers should also verify their WCB account details (mailing address, direct deposit, and contact info) to avoid payment delays. WCB will also issue 2026 assessment rates in December 2025, helping businesses plan upcoming costs. PaymentEvolution supports PEI employers by keeping payroll records accurate and helping meet year-end reporting deadlines.

Québec is offering a temporary two-year exemption (2026–2027) from employer Health Services Fund (HSF) contributions for eligible businesses in agriculture, forestry, and fishing. If your company qualifies, your HSF rate becomes 0% and you won’t need to remit HSF payments for wages paid during those years—reducing payroll costs and simplifying administration. To be eligible, more than 50% of your total annual payroll must be tied to work under qualifying NAICS codes, and this test must be reconfirmed separately for 2026 and 2027 (meaning eligibility can change year to year). Employers still need to meet all other payroll reporting requirements, and PayEvo will support compliance and questions throughout the exemption period.

Ontario employment law changes in 2025–2026 affect how small businesses hire, pay, and stay compliant. Key updates include no doctor’s notes for ESA sick days, recruiter/temp agency licensing rules, remote workers counting toward mass terminations, and minimum wage increases (to $17.60/hr on Oct. 1, 2025). New rules also add protections for gig workers (July 1, 2025) and require a written job details statement for new hires at employers with 25+ staff. Starting Jan. 1, 2026, job postings must include salary ranges, disclose AI use in hiring, and can’t require “Canadian experience.” Employers should update job templates, audit hiring tools, train managers, and use payroll/HR systems to reduce compliance risk.

Starting July 1, 2025, Ontario employers with 25+ employees must provide new hires with a written employment information document before their first day (or as soon as reasonably possible after). The document must outline key job details like the employer’s legal name and contact info, work location, starting wage, pay schedule, and expected hours. Temporary help agency assignment employees and employers with fewer than 25 staff are exempt. HR and payroll teams should update onboarding templates, train staff, and ensure a process is in place to stay compliant and avoid ESA enforcement.

Starting July 1, 2025, the lowest federal income tax rate drops from 15% to 14%, affecting income under $57,375. The average rate for 2025 will be 14.5% due to the mid-year start, with full 14% applying in 2026. Small businesses must update payroll systems to stay compliant with CRA rules. PaymentEvolution automates these changes, helping employers avoid errors, penalties, and extra admin work

In 2025, minimum wages are rising across Canada, affecting payroll, compliance, and business budgets. From scheduling to reporting, these changes add complexity, but with PaymentEvolution’s automated updates, you can stay compliant, reduce errors, and keep payroll running smoothly.