Employer Responsibilities
As an employer, you must deduce the following from your employees' pay:
- Canada Pension Plan (CPP): You must also contribute an amount equal to the employee's share.
- Employment Insurance (EI): You must contribute 1.4 times the employee's share.
- Income Tax: Federal and provincial tax based on the employee's claim codes (TD1 forms).
Remitting Source Deductions
You must hold these amounts in trust and remit them to the Receiver General for Canada. Penalties for late remittance are severe (starting at 3% and up to 20%).
Official Resource: Remitting payroll deductions
T4 Slips
You must file T4 slips (Statement of Remuneration Paid) by the end of February of the following calendar year.
