What Business Bank Account Is Best for Payroll in Canada

Picture this: You've just hired your first employee, set up your payroll software, and you're ready to run your first payroll. Then you discover your business account can't actually process the payments. This scenario happens more often than you'd think, especially with the rise of fintech platforms that look modern but lack the infrastructure for Canadian payroll.

Running payroll requires specific banking capabilities that many business accounts don't support. Your account needs to process direct deposits through Electronic Funds Transfer (EFT), remit taxes to the Canada Revenue Agency, and handle pre-authorized debits for payroll provider integrations. Without these features, you're stuck manually processing payments or maintaining multiple accounts.

Many popular fintech platforms can't process EFT payments or government remittances because they lack real Canadian banking infrastructure. Even some traditional bank USD accounts have these limitations. This guide compares payroll-compatible business accounts across traditional banks and modern platforms to help you find the right solution for your business.

Why Payroll Compatibility Matters for Your Business Account

Payroll processing requires three critical payment types that not all business accounts support. First, you need EFT capability for employee direct deposits. Second, your account must handle CRA tax remittances for payroll deductions. Third, you need pre-authorized debit functionality to integrate with payroll providers like Waveapps, QuickBooks Payroll, or ADP.

Many fintech platforms and traditional bank USD accounts can't support these payment types because they operate on foreign banking rails or lack the necessary infrastructure. This creates a significant operational challenge. You might love your fintech account for daily operations but discover you need a separate traditional bank account just for payroll.

The cost and friction of maintaining multiple accounts add up quickly. You're paying fees for both accounts, manually transferring funds between them, and reconciling transactions across different platforms. This complexity increases the risk of errors and makes cash flow management unnecessarily difficult.

This is where platforms like Venn really shine. Venn gives you full ability to not only manage your business finances from one singular app, but also the ability to set up a PAD from your Canadian account. This gives you the ability to run payroll out of a Fintech account, giving you the best of both worlds.

Quick Comparison: Best Business Accounts for Payroll in Canada (2025)

‍

*Note: Fintech platforms without Canadian banking infrastructure cannot process payroll EFT or CRA payments. Scotiabank fee waived with $75,000 minimum balance.

Top Business Accounts for Payroll in Canada

Payroll compatibility narrows the field significantly. The following platforms represent the most viable options for Canadian businesses that need full payroll functionality.

1. Venn Business Account

Venn offers a real Canadian business account, providing full EFT and pre-authorized debit support for payroll processing. Unlike other fintech platforms, Venn can handle direct deposits, CRA remittances, and provincial tax payments without requiring a separate traditional bank account.

The platform is designed for growing Canadian businesses that want modern banking features without sacrificing payroll capabilities. With automated two-way sync to QuickBooks and Xero, including their payroll modules, Venn eliminates manual reconciliation work while providing the infrastructure needed for reliable payroll processing.

Key Features:

• Real Canadian business account built on Peoples Trust Bank infrastructure

• Full EFT and pre-authorized debit support for payroll processing

• Direct CRA and provincial tax payment capability

• Two-way sync with QuickBooks and Xero (including payroll modules)

• No monthly account fees on Essentials plan

• Free unlimited Interac e-Transfer® for contractor payments

• Multi-currency accounts (CAD, USD, GBP, EUR) for international team payments

• 1% unlimited cashback on corporate card spend

• Automated expense management and receipt capture

• Same-day or next-business-day payment processing

• 24/7 online support

Best For: Growing Canadian businesses that need full payroll capability, accounting automation, and multi-currency support in a single platform without traditional banking fees.

2. RBC Business Account

RBC provides traditional business banking with full payroll support through its established infrastructure. The bank offers multiple account tiers with varying transaction limits, though most businesses running regular payroll will need higher-tier plans to avoid excess transaction fees.

Monthly fees range from $6 to $65 depending on your chosen plan, with additional charges for transactions beyond your limit. While RBC supports all necessary payroll functions, the platform lacks modern automation features and charges 2.5-3% markup on foreign exchange transactions.

Key Features:

• Full EFT and direct deposit capability

• CRA payment support

• Integration with major payroll providers

• $6-$65 monthly fees depending on plan

• 2.5-3% FX markup on international payments

• Limited digital automation features

• No included cashback or rewards

Best For: Established businesses that prefer traditional banking relationships and require in-branch services.

3. TD Business Account

TD offers payroll-compatible accounts with EFT support, though basic plans have low transaction limits that may not suit businesses with regular payroll runs. Higher-tier plans are often necessary for active payroll processing, significantly increasing monthly costs.

The bank's digital capabilities remain limited compared to modern alternatives. While TD can process payroll, the lack of native accounting integrations means more manual work for reconciliation and reporting.

Key Features:

• Direct deposit and EFT support

• CRA remittance capability

• $5-$95 monthly fees depending on transaction volume

• Additional fees for Interac e-Transfer®

• 2.5-3.5% FX fees

• No native accounting integrations

• No cashback on business spending

Best For: Small businesses with minimal payroll needs and low transaction volumes.

4. BMO Business Account

BMO's eBusiness Plan offers unlimited electronic transactions, making it suitable for businesses with regular payroll runs. The account provides full payroll processing support including EFT and CRA payment capabilities.

However, Interac e-Transfer® costs extra at $1.50 per transaction, and the platform's international capabilities remain limited with FX markups around 2.9%. The lack of integrated expense management tools means businesses need separate solutions for comprehensive financial management.

Key Features:

• Unlimited electronic transactions on eBusiness Plan

• Full EFT and payroll support

• CRA payment capability

• $0-$65 monthly fee depending on plan

• $1.50 per Interac e-Transfer®

• ~2.9% FX markup

• No integrated expense management

Best For: Online-first businesses with domestic payroll needs and predictable transaction patterns.

5. Scotiabank Business Account

Scotiabank's Unlimited Business Account supports high-volume payroll processing but comes with premium pricing. The $120 monthly fee can be waived with a $75,000 minimum balance, making it suitable primarily for larger businesses with significant cash reserves.

The account includes full traditional banking services and access to business advisors. However, it lacks modern automation tools and charges standard bank rates for foreign exchange transactions.

Key Features:

• Unlimited transactions including EFT

• Full payroll and CRA payment support

• $120 monthly fee (waived with $75,000 balance)

• 2.5-3% FX fees

• Access to business advisors

• No modern automation tools

• No cashback or digital-first features

Best For: Large businesses with high balances that value in-person banking relationships.

6. Wise Business Account

Wise excels at international payments but cannot support Canadian payroll processing. The platform lacks EFT capabilities and cannot process CRA remittances, making it unsuitable as a primary payroll account for Canadian businesses.

While Wise offers excellent multi-currency features and low FX fees, businesses must maintain a separate Canadian account for domestic payroll. This creates the exact multiple-account problem that comprehensive platforms like Venn solve.

Key Features:

• No Canadian EFT or direct deposit support

• Cannot process CRA payments

• Excellent multi-currency capabilities (40+ currencies)

• Low FX fees (~0.4-0.6%)

• No monthly account fees

• Good for paying international contractors

• Not suitable as primary payroll account

Best For: Businesses paying international contractors who maintain a separate Canadian account for domestic payroll.

What to Look for in a Payroll-Compatible Business Account

Payroll compatibility requires specific technical capabilities beyond basic business banking features. Not every account that calls itself "business banking" can actually handle the requirements of Canadian payroll processing.

The most critical factor is real Canadian banking infrastructure that enables EFT and pre-authorized debit support. Without this foundation, you cannot process direct deposits or set up automated payroll runs through providers like Waveapps or ADP.

Key Factors to Consider:

• Real Canadian banking infrastructure: EFT and pre-authorized debit support for direct deposits

• CRA payment capability: Ability to remit payroll taxes and deductions directly

• Payroll provider integration: Compatibility with Waveapps, QuickBooks Payroll, Rise, ADP, or other platforms

• Transaction costs: Monthly fees and per-transaction costs for payroll runs

• Accounting software sync: Automated reconciliation with QuickBooks or Xero

• Multi-currency support: If paying international employees or contractors

• Speed and reliability: Same-day or next-business-day processing for time-sensitive payroll

Most businesses need additional features beyond payroll processing. Expense management, corporate cards, and invoicing capabilities in the same platform reduce operational complexity and eliminate the need for multiple disconnected tools.

Why Venn Is the Best Business Account for Payroll in Canada

Venn built its infrastructure on top of Peoples Trust Bank, providing real Canadian banking rails that enable EFT, pre-authorized debits, and CRA payments. This isn't just a technical detail—it's the fundamental difference that allows Venn to fully replace traditional banks for payroll processing while other fintechs cannot.

The cost and efficiency advantages become clear when you compare total expenses. Venn offers no monthly account fees on the Essentials plan, free unlimited Interac e-Transfer®, and low-cost or free EFT depending on your plan. Automated two-way sync with accounting platforms means payroll reconciliation happens automatically. Multi-currency accounts eliminate FX fees when paying international team members.

Venn handles payroll, expense management, corporate cards, invoicing, and bill payments in one platform. This comprehensive approach eliminates the need for multiple disconnected tools while adding value through features like 1% unlimited cashback on all corporate card spend. You get modern banking efficiency without sacrificing the payroll capabilities your business needs.

Learn more about Venn's pricing or sign up for your Venn account today.

Frequently Asked Questions About Business Accounts and Payroll in Canada

Can I run payroll from any business bank account in Canada?

A: No, not all business accounts support payroll. You need an account with EFT capabilities, pre-authorized debit support, and the ability to process CRA payments. Many fintech platforms and even some traditional bank USD accounts specifically lack these crucial Canadian-specific features.

Why can't fintech business accounts process payroll payments?

A: Most fintech platforms operate on foreign banking rails or virtual account infrastructure that does not support the Canadian EFT payment network or CRA remittances. Only platforms built on real Canadian banking infrastructure (like Venn, through its partnership with Peoples Trust Bank) can process these essential domestic payment types.

What is EFT and why does it matter for payroll?

A: Electronic Funds Transfer (EFT) is the standard, low-cost method for direct payroll deposits in Canada. It matters because without EFT capability, you cannot process employee payroll electronically and would need to rely on expensive manual methods like paper cheques or Interac e-Transfer®, which are not practical for regular, compliant payroll.

Can I use Wise or similar platforms for payroll in Canada?

A: No, Wise and similar international payment platforms cannot process domestic Canadian payroll because they lack the necessary EFT capabilities and functionality for CRA tax remittances. These platforms work excellently for international contractor payments but require a separate, full-capability Canadian account for domestic employee payroll.

How does Venn support payroll processing?

A: Venn supports full payroll processing by providing real Canadian banking infrastructure through Peoples Trust Bank, which enables all necessary features: full EFT payments, pre-authorized debits, and seamless CRA remittances. The platform integrates directly with all major Canadian payroll providers.

---

**Disclaimer:** This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Venn Software Inc or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.