Employer Responsibilities
As an employer, you must deduct the following from your employees' pay:
- Canada Pension Plan (CPP1): For 2026, the employee contribution rate is 5.95% on pensionable earnings between $3,500 and the first ceiling of $71,300. You must also contribute an amount equal to the employee's share.
- CPP2 (Second Ceiling): Since 2024, a second CPP contribution ceiling applies. For 2026, CPP2 contributions apply on earnings between $71,300 and $81,200 at a rate of 4%.
- Employment Insurance (EI): The 2026 employee premium rate is $1.64 per $100 of insurable earnings, up to a maximum insurable earnings of $65,700. 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 last day of February of the following calendar year. For the 2025 tax year, that deadline is February 28, 2026.
