How PayCub Works

How PayCub works

Last updated October 2026

At a glance

PayCub calculates CRA deductions, builds pay stubs, emails them to employees, and keeps year-to-date totals for remittances and T4s.
PayCub does not move money. You pay employees and remit to the CRA yourself, which keeps it far cheaper than full-service payroll.
Most settings are entered once per employee and carry forward to every pay run.

1. Set up your company

Enter your legal business name, address and province, your CRA payroll account number, and your remittance frequency. These appear on pay stubs, remittance reports and T4 slips. If you run payroll for more than one company, each one gets its own profile under the same login (see Multiple companies and billing).

2. Add your employees

Each employee profile holds the details PayCub needs on every run:

Name, address and email. The email is where pay stubs are sent.
Start date. Used for years of service, which matters for vacation pay minimums.
Date of birth. PayCub shows the employee's age and whether CPP applies, so you know when to turn on CPP Exempt.
SIN. Only used for T4 slips.
Province of Employment. Decides which provincial tax tables apply. It can differ from where the employee lives.
Pay type and rate. Hourly, salary or piecework.

3. Choose vacation pay settings

Vacation pay is set per employee with two switches and a percentage:

Automatically Calculate Vacation Pay applies the percentage to eligible earnings on every pay stub.
Accrue Vacation Pay holds it as a running balance instead of paying it out, so you can pay it when the employee takes time off.

The minimum percentage depends on the province and years of service. When you add an employee, PayCub suggests the starting rate for their Province of Employment and reminds you if the rate you enter is below the minimum. See Vacation pay by province.

4. TD1 on the first pay stub

Federal and provincial TD1 claim amounts are entered the first time you run payroll for a new employee. After that they carry forward automatically. See TD1 and tax credits.

5. Run payroll

Pick the pay date, enter hours or units for hourly and piecework employees (salaried employees fill in automatically), and add any one-off earnings such as a bonus. PayCub calculates income tax, CPP, CPP2 and EI, applies the yearly maximums, and shows the stubs for review before you save them.

Pay runs are records. Each run builds on the year-to-date totals before it, so older stubs lock once newer runs exist. Check hours and amounts before saving. See Backdating and locked pay stubs.

6. After each run

Pay stubs can be emailed to employees as PDFs, downloaded, or printed on standard payroll cheque stock.
Remittance report. PayCub totals what you owe the CRA for the period. You pay it through your bank or CRA My Business Account. See Remittances and due dates.
Year-end. Your T4s are built from the same history. See T4 slips.