8.6 Chapter Summary and Additional Readings and Resources

8.6.1. Chapter Summary

Employers must fulfill their obligations to remit deductions accurately and on time, including income tax, EI premiums, CPP contributions, and other mandatory deductions. Late remittances can result in penalties and interest charges.

Employers have various options for remittance, such as online payments, in-person payments, or using third-party payroll providers. Remittance schedules depend on the type of remitter and the average monthly withholding amount.

Employers in certain provinces are required to pay health taxes based on their employees’ total annual wages. The rates and due dates for these taxes differ by province.

Year-end reporting involves issuing T4 slips to employees and submitting T4 Summaries to the CRA. Compliance with reporting requirements is essential, and penalties may be imposed for late or incorrect filing.

Employers need to review and reconcile payroll records, correct errors, verify year-to-date figures, update employee information, and generate year-end payroll reports. Proper documentation and records retention are important for compliance and audit purposes.

Employers must stay informed about legislative changes that can affect payroll calculations, including EI premiums, CPP contributions, tax rates, and other statutory deductions. This ensures accurate payroll processing and compliance with updated regulations.

By understanding these key takeaways, employers can effectively manage their payroll processes, meet their legal obligations, and ensure accurate remittances and year-end reporting.

8.6.2 Additional Readings and Resources

Government of Canada. (2024). Remit (pay) payroll deductions and contributions: Types of remitters. https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/remitting-source-deductions/how-when-remit-more-information.html

PaySimply. (n.d.). Canada Revenue Agency (CRA) tax payments. https://www.paysimply.ca/cra/