Construction payroll in Canada requires strict attention to federal, provincial, and industry-specific regulations that often change without much notice. For contractors working across multiple provinces, managing union agreements, or handling seasonal layoffs, staying compliant can become a full-time job.
Mistakes in payroll are rarely isolated. One late ROE or missed remittance can lead to audit exposure, strained client relationships, and a loss of employee trust. Contractors who rely on generic payroll software or manual processes often discover too late that their systems were never designed for the complexity of construction compliance.
This article outlines the core compliance requirements Canadian construction companies must meet and shows how using the right systems can help maintain accuracy, reduce administrative load, and prepare your business for audits without panic.
Core Payroll Compliance Requirements in Canadian Construction
1. Federal Payroll Obligations
All employers must deduct and remit income tax, Canada Pension Plan (CPP or QPP in Québec), and Employment Insurance (EI) contributions. These remittances must follow CRA deadlines based on your remitter type (monthly, quarterly, accelerated). Penalties for late or incorrect remittances range from 3% to 10%, depending on severity and frequency.
Records of Employment (ROEs) must be issued whenever an employee experiences an interruption in earnings. Timelines vary depending on how ROEs are submitted: for electronic ROEs, the deadline is five calendar days after the end of the pay period in which the interruption occurred. Late ROEs can delay EI benefits and may prompt CRA follow-up.
2. Provincial Overtime and Holiday Pay Rules
Each province sets its own overtime and statutory holiday pay rules. For example, Ontario’s Employment Standards Act requires overtime pay at 1.5× the regular rate after 44 hours in a week (daily limits can apply in certain jobs, and averaging agreements can complicate things). Alberta uses the 8/44 rule (all hours worked over 8/day or 44/week, whichever is greater), but there are exceptions by occupation (ie. roadwork). Basically, it’s complicated.
Employers must stay up to date on the applicable legislation in every province where they operate. Misapplying overtime rules or failing to track hours by job classification can result in back pay, interest charges, and loss of trust with employees.
3. Union Trust Fund Remittances
Unionized contractors must submit contributions to union trust funds according to the terms of their collective agreements. This includes pension, benefit, training, and vacation funds, as well as dues. Contributions are usually calculated based on hours worked, and remittance schedules are tightly enforced.
Missing a remittance deadline can trigger formal grievances, interest charges, or even suspension of jobsite access. Employers must ensure they’re applying the correct trade rates, classifications, and hours in accordance with union rules.
There is no universal source for all trust fund rules, as these vary by union and jurisdiction. Contractors must work directly from their signed agreements and any amendments provided by union locals.
4. CCQ Reporting in Québec
Contractors operating in Québec under Act R-20 must report employee activity monthly to the Commission de la construction du Québec (CCQ). This includes hours worked, trade classifications, wage rates, and trust fund contributions. Reports must be submitted even if no work occurred in a given month.
Errors in CCQ reporting can result in payment holds, trust fund shortfalls, or compliance reviews. Contractors must also respect the wage ladders and travel compensation structures mandated by the CCQ for each trade and region.
5. Workers’ Compensation and Incident Support
Every province has its own workers’ compensation board (e.g., WSIB in Ontario, CNESST in Québec, WCB in Alberta). In the event of a claim or audit, contractors must be able to produce signed safety documentation, accurate time records, and jobsite logs that reflect where and when the employee was working.
Inconsistent records or missing paperwork can delay claims or expose employers to disputes over liability. Employers are expected to maintain detailed records that demonstrate a consistent safety process and an accurate reflection of hours worked.
Why Most Payroll Tools Don’t Handle Construction Compliance
Standard payroll systems like Wagepoint, ADP, or Payworks are designed for office environments and fixed schedules. They handle source deductions well but fall short when applied to construction workflows.
These systems may not track job-specific hours or account for multiple rates per employee. Some do not support union logic or export-ready reports for trust funds or CCQ filings. As a result, office staff are forced to create spreadsheets to adjust exports, verify hours manually, and re-enter corrected data into accounting systems. These extra steps slow down payroll and introduce opportunities for error.
Even platforms with solid back-office functionality rarely offer visibility into whether time was approved properly or safety documentation was submitted. This disconnect creates gaps in audit trails and weakens your compliance posture.
Common Payroll Compliance Failures and Their Consequences
Construction firms that operate without systems built for their environment often run into avoidable problems:
- Missed ROEs cause delays for workers trying to access EI benefits and can result in CRA inquiries
- Incorrect overtime payments create liabilities for back pay and legal exposure
- Missing or late union remittances trigger trust issues and formal grievances
- Incomplete CCQ submissions attract audit interest and damage client confidence
- No safety documentation attached to payroll records weakens your defense during WSIB claims or inspections
These issues cost time, money, and reputation. Most of them start with disorganized data entry, inconsistent field adoption, or gaps between jobsite activity and office systems.
How Corfix Supports Payroll Compliance in Construction
Corfix was built specifically to support the field-to-office connection in construction companies. It integrates timekeeping, safety documentation, certification tracking, and project records in one system. This structure allows office administrators and safety managers to maintain complete and accurate compliance records without chasing down missing information.
Timekeeping Accuracy
Field crews can log hours directly from mobile devices, using either time cards or a punch clock. Hours are attached to the correct project, classification, and cost code at the moment of entry. Optional geofencing and approval workflows ensure that hours are reviewed before payroll runs.
Union and CCQ Reporting Support
Corfix supports wage ladders, trust fund calculations, and Québec-specific reporting logic. Exports can be formatted for union remittances without re-keying data. For CCQ contractors, weekly reporting becomes routine rather than reactive.
Compliance-Linked Documentation
Because safety forms, incident reports, and certifications live in the same system as timekeeping data, each payroll record includes the necessary supporting documentation. Forms are location-stamped and signature-verified, improving audit readiness.
Real-Time Oversight
Supervisors and admins can see, in real time, whether a worker has completed required forms, certifications are current, or an ROE might need to be prepared. Issues can be resolved before payroll is submitted, not after problems surface.
Staying Ahead of Compliance Challenges
Regulations will continue to evolve. Labor mobility, cross-province operations, and client demands will add complexity. Contractors who try to manage these changes with spreadsheets or disconnected tools increase their exposure to penalties and inefficiencies.
Compliance does not have to be expensive or complicated, but it does require systems that are designed for construction work. Corfix makes it easier to meet legal and operational standards without relying on memory, paper, or guesswork.
Make Compliance Part of Your Process, Not a Separate Job
Corfix helps construction teams manage time, safety, and compliance from one central platform. By eliminating redundant data entry and increasing accuracy at the source, payroll becomes faster, more reliable, and audit-ready.
Visit corfix.com/get-a-demo to see how Corfix can reduce risk and simplify compliance across your organization.