Essential Infrastructure: Payroll in Canada

Peter Tzanetakis, President and CEO of the National Payroll Institute, recently shared a message on LinkedIn, that will have resonated with many across the payroll profession in Canada. His call to recognize payroll as essential infrastructure is not just timely – it’s long overdue.

The Team and I here in Toronto speak with hundreds of payroll professionals across the country every single week. These are highly skilled, deeply knowledgeable individuals who understand the nuances of compliance, systems, legislation, and data. They are not just processing numbers. They are managing risk, navigating complexity, and protecting the financial wellbeing of millions.

Link: https://www.linkedin.com/posts/peter-tzanetakis

Payroll is a critical engine that supports 20.99 million working Canadians and 1.35 million employers. Every year, payroll systems are responsible for paying out over $1.1 trillion in wages and taxable benefits.

On top of that, they facilitate the collection of more than $360 billion in statutory remittances, including income tax, CPP, and EI – revenue that funds the very programs the country relies on.

Peter outlined three recommendations that deserve serious attention:

• Harmonize payroll legislation across provinces to ease complexity and promote consistency for employers and practitioners working across jurisdictions.
• Invest in Real-Time Employment Data (RTED) to help governments respond faster and more effectively to economic shocks, from tariffs to local employment fluctuations.
• Hire designated payroll professionals within government to ensure public payroll systems are run with the same level of expertise and accountability we expect in the private sector.

As Peter say’s, when the pandemic hit, payroll departments were among the first to step up. They implemented emergency relief programs, adapted to evolving regulations, and ensured Canadians continued to get paid. Without them, those support systems would have collapsed. And yet, payroll professionals continue to operate largely in the background, under-recognized and underrepresented in policy conversations.

A recent survey by the National Payroll Institute revealed that more than 42% of payroll professionals identified increasing regulatory complexity as one of their most pressing challenges. And, without meaningful action to simplify and align legislation, that figure is likely to climb. If you’re looking to better understand the realities of working in Canadian payroll – from salary benchmarks to evolving pressures – you can download the first ever Canadian payroll salary survey here. It offers valuable insight into the profession’s current landscape and what’s ahead.

At Portfolio Payroll Canada, we are proud to support the professionals who keep these systems running. Through expert recruitment, market insight, and long-standing partnerships with the NPI and payroll leaders nationwide, we are committed to elevating the profession and ensuring organizations can find the talent they need to succeed.

The UK and other countries have already begun modernizing payroll infrastructure in meaningful ways. Canada can and should follow suit. But to get there, we need government buy-in, investment, and an acknowledgment that payroll is not a back-office function. It is frontline economic infrastructure.

It is time for payroll professionals to get the recognition, resources, and respect they deserve – and for Canada to build systems that support them accordingly.

Peter’s message is clear: when payroll thrives, Canada thrives.

And, as someone deeply embedded in the industry, I could not agree more.

Joe Middleton

Joe Middleton is the Associate Director at Portfolio Payroll Canada, part of The Portfolio Group. Based in Toronto, Joe leads the Canadian division, managing a team of consultants and driving senior-level recruitment and business development across the payroll sector.

With over 20 years of recruitment experience – including executive search, permanent, and temporary placements – Joe brings deep industry insight and leadership expertise to every engagement. His first-hand experience in Canadian payroll adds a unique layer of understanding that informs his approach and builds trust with clients and candidates alike.

Portfolio Payroll Canada is the country’s only specialist payroll recruitment agency, offering a tailored 5-star Trust Pilot rated service to leading Fortune 500 companies, global enterprises, and growing small to mid-sized businesses in Canada. With international reach through offices in the UK, Ireland, and Canada, the team is proud to support the professionals who power payroll.

Connect with Joe on LinkedIn to continue the conversation or learn more about how Portfolio Payroll Canada can support your hiring needs.

Stat Sources

1. $1.1 trillion in wages and taxable benefits paid annually through payroll
   ➤ Source: National Payroll Institute
   ➤ Link: https://payroll.ca/research-and-resources/payroll-fast-facts
2. $360 billion in statutory remittances (income tax, CPP, EI) collected annually through payroll
   ➤ Source: National Payroll Institute
   ➤ Link: https://payroll.ca/research-and-resources/payroll-fast-facts
   (Same page as above – both stats are listed together)
3. 42% of payroll professionals cite increasing complexity as a top challenge
   ➤ Source: 2023 National Payroll Institute Survey of Canadian Payroll Professionals
   ➤ Link: https://payroll.ca/news-resources/news/payroll-professionals-sound-alarm-on-growing-complexity
4. 20.99 million employees / 1.35 million employers
   ➤ Source: National Payroll Institute (2023), corroborated by Statistics Canada
   ➤ Link (NPI): https://payroll.ca/research-and-resources/payroll-fast-facts
   ➤ Link (StatsCan employment data): https://www150.statcan.gc.ca/n1/daily-quotidien/240105/dq240105a-eng.htm