Chapter 6: Employer Payroll Expenses
6.1 Overview
In addition to accurately calculating employees’ gross pay, deductions, and net pay, payroll is also responsible for calculating and remitting employer payroll expenses. Employer payroll expenses are the financial obligations and contributions that employers are responsible for, including employer CPP and EI contributions, workers’ compensation premiums, and provincial health taxes in applicable provinces. These employer expenses are handled by payroll, meaning that they are calculated, deducted, and remitted by the payroll department.
In this chapter, you will learn how to calculate employer CPP and EI contributions. You will also learn about employers’ mandatory premiums payable to workers’ compensation boards and agencies, including the framework for calculating employers’ workers’ compensation premiums. Finally, you will learn about employer health taxes, identifying the jurisdictions that have an employer health tax and how employers contribute.
Specific Learning Outcomes
Upon successful completion of this chapter, you will be able to:
- Calculate employers’ CPP contributions
- Calculate employers’ EI premiums
- Identify how to determine workers’ compensation premiums in different Canadian jurisdictions
- Identify the Canadian jurisdictions that require employers to pay provincial health taxes and determine applicable tax rates
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