Mastering Payroll Deductions

As an employer, you are responsible for deducting, remitting, and reporting payroll deductions. Failure to do so can result in significant penalties.

The Big Three

1. Canada Pension Plan (CPP): Both you and the employee contribute. For 2024, the maximum pensionable earnings are $68,500.
2. Employment Insurance (EI): Employees contribute a percentage of their earnings, and employers contribute 1.4 times the employee amount.
3. Income Tax: Deducted from the employee's pay based on their TD1 forms and tax tables.

Remittance Schedule

Depending on your payroll size, you may be a regular remitter (due the 15th of the following month) or a quarterly remitter. Always check your status with the CRA.