Payroll Software Costs, Pricing Models and 2026 Rules
Records of Employment (ROE) and payroll software: deadlines, electronic submission and common errors
When an ROE is required, paper and electronic deadlines, ROE Web versus payroll software submission, and how to avoid amended ROEs.
An employer must issue a Record of Employment (ROE) whenever an employee has an interruption of earnings: a layoff, quit, dismissal, leave (for example maternity, parental or sickness), or a drop in earnings that triggers EI eligibility. Submitted electronically, the ROE is due within 5 calendar days after the end of the pay period in which the interruption occurs for weekly, biweekly and semi-monthly payroll; for monthly payroll (or 13 pay periods a year) it is due the earlier of 5 calendar days after the period ends or 15 calendar days after the first day of the interruption. A paper ROE is due within 5 calendar days of the interruption or of the day you become aware of it. Payroll software should build the ROE from pay history and submit it electronically, so you do not have to calculate insurable hours and earnings by hand.
This guide belongs to the payroll and HR software comparison overview. Deadlines are from Service Canada's ROE guide, checked October 2026.
Electronic ROE options
| Method | How it works | Fits |
|---|---|---|
| ROE Web (Service Canada portal) | You create ROEs online, by hand or by uploading a file from your payroll system | Small employers; software that exports an ROE file |
| ROE Secure Automated Transfer (SAT) | Payroll systems or payroll service providers send ROEs in bulk | Payroll providers and larger employers |
| Payroll software integration | The software sends the ROE through SAT or prepares an upload for ROE Web | Most employers using payroll SaaS |
| Paper ROE | Ordered paper forms, completed by hand | Rare; slower and error-prone |
Electronic ROEs are not printed for the employee; employees see them in their My Service Canada Account. You may still give a copy if asked. Paper forms remain available, but electronic submission is far more common and easier to amend.
What the ROE needs from payroll
The ROE is built from data your payroll system should already have:
- first day worked and last day for which paid;
- pay period type and the final pay period ending date;
- insurable hours and insurable earnings for the required number of most recent pay periods (the number depends on pay frequency);
- reason for issuing code (for example shortage of work, quit, dismissal, illness, parental);
- vacation pay paid on separation, statutory holiday pay after the last day, and other monies (severance, retiring allowance);
- expected date of recall, if known;
- contact person for Service Canada.
Insurable hours for salaried employees often need special handling (actual hours worked or a reasonable estimate), and some earning types are not insurable. That is why manual ROEs are a common source of errors.
Illustrative example. A biweekly employee is laid off for shortage of work. The last day paid is Friday 6 November 2026, which falls in the pay period ending 7 November. The electronic ROE is due 5 calendar days after that period ends: by 12 November 2026. If the employer only submits paper, the clock runs from the interruption itself, so the deadline is earlier.
Mistakes that lead to amended ROEs
| Error | Effect | How software prevents it |
|---|---|---|
| Wrong reason code | Delays or changes the employee's EI decision | Reason code picklist with descriptions; HR termination workflow |
| Missing vacation pay paid on separation | Service Canada may allocate it later; amendments | Final pay calculation flows into the ROE |
| Wrong insurable earnings for a period | Benefit rate wrong | Uses pay history, not manual totals |
| ROE not issued for a leave | Employee cannot claim | Leave of absence triggers an ROE task |
| Duplicate ROEs from two systems after a switch | Confusion, amendments | Clear rule on which system issues ROEs for which periods |
Knowingly entering false or misleading information on an ROE can lead to fines or prosecution, and Service Canada may contact you to correct ROEs. Amendments are part of the job, but each one costs time and sometimes a vendor fee.
Questions to ask vendors
- Does the software submit ROEs electronically itself, or produce a file for ROE Web?
- Are ROEs included in the price, or charged per ROE or per amendment?
- Does a termination or leave entered in the HR module create the ROE automatically?
- How are insurable hours handled for salaried employees?
- After a mid-year switch, can it build an ROE that includes pay periods from the previous system?
- Can it handle Quebec employees (QPIP-related leaves still use the ROE for EI purposes)?
Record your answers in the selection checklist. For a seasonal workforce, ROE capability is often the deciding factor between a payroll module and dedicated payroll software; see software types and best fit.
Retention
Service Canada asks employers to keep payroll records related to ROEs for six years after the year to which the information relates, in paper or electronic form. For electronic ROEs you do not need paper copies, but the data must be kept. That matters if you switch providers: make sure you can still produce the pay history behind past ROEs. See record retention and employee privacy.
Related guides: T4 slips and electronic filing and switching payroll providers mid-year.
FAQ
Do I need to issue an ROE when an employee goes on parental leave?
Yes. A leave that causes an interruption of earnings requires an ROE, with the appropriate reason code, so the employee can apply for EI benefits (or, in Quebec, so the EI side is documented alongside QPIP).
Is an ROE needed when an employee quits?
Yes, an interruption of earnings for any reason, including a quit, requires an ROE. The reason code tells Service Canada why the employment ended.
What if I miss the ROE deadline?
Submit it as soon as possible. Late ROEs delay the employee's claim, and repeated or knowing non-compliance can lead to penalties under the Employment Insurance Act. Service Canada's Employer Contact Centre can help with problem cases.
Can my accountant submit ROEs for me?
Yes, a representative or payroll service provider can submit ROEs on your behalf if set up with the right access in ROE Web. The employer remains responsible for the content.
Sources
- Employment and Social Development Canada / Service Canada — How to complete the Record of Employment form, ROE Web, ROE SAT
- Justice Laws Website — Employment Insurance Act and Employment Insurance Regulations (s. 19)
- Canada Revenue Agency — insurable earnings and insurability rulings
- Revenu Québec — Quebec payroll obligations alongside QPIP
