Changing Payroll Frequency

Changing the payroll frequency requires understanding CPP contributions and issuing ROEs for all employees. We recommend you do not change the payroll frequency mid-year due to potential CPP/QPP over/under exemptions, which may result in fines or interest. If you do 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 the termination reason as "Other/Change of payroll frequency code (K-12)”.  

To start this process, begin by terminating your employees in the system and issuing ROEs using the reason of termination “Other/Change of payroll frequency code (K-12)”. The termination date you choose should be the last pay period date of the last pay run you did before starting this process.  Once Service Canada has accepted each ROE, proceed with the steps below. 

To change how often you pay your staff or move staff from one frequency to another: 

Step 1: Go to Employees. 

Step 2: Click the downward arrow at the top to get to the different Team categories. 

Step 3: Select Off-Boarding. 

Step 4: Click the three dots on the end of the employee line in the Off-Boarding Dashboard.    

Step 5: Select Re-hire. 

Step 6: Input your new hire date. The new hire date should be the day after the termination date you chose. For example, if the termination date you choose was March 21st, 2025, the rehire date would be March 22nd, 2025.  

Step 7: Click Re-Hire. 

Note: The employee's EI history will clear the day after termination because Service Canada has their information. 

Step 8: Return to the Employees list. 

Step 9:Click the three dots. 
Step 10: Select Profile. 

Step 11: Click Payroll.  

Step 12: Click the Payment Structure Page at the top. 

Step 13: Click on Pays/Year and change the Pays/Year. 

Step 14: Click Save to save the changes made.  

To make all new employee default to the new frequency:

Step 15: Go to Company Settings  

Step 16: Click Payroll Options. 

Step 17: Change the company's Number of Pays Per Year to start a new pay frequency for all the new employees. 

Step 18: Click Save 

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.