Understanding Canadian Payroll: A Complete Guide
ਕੈਨੇਡੀਅਨ ਪੇਰੋਲ ਨੂੰ ਸਮਝਣਾ: ਇੱਕ ਪੂਰੀ ਗਾਈਡ
Everything employers need to know about payroll obligations, deductions, and compliance.
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Key Takeaways
- Employers must deduct CPP, EI, and income tax from wages
- Remittances due by 15th of following month (most employers)
- T4 slips due to employees by end of February
- Severe penalties for late or missed remittances
Payroll Deduction Components
CPP Contributions (2025)
Employee: 5.95% | Employer: 5.95%
Maximum pensionable earnings: $71,300
Basic exemption: $3,500
EI Premiums (2025)
Employee: 1.64% | Employer: 2.30% (1.4x)
Maximum insurable earnings: $65,700
Key Deadlines
- Monthly remittances: 15th of following month
- T4 to employees: Last day of February
- T4 Summary to CRA: Last day of February
- Record of Employment (ROE): Within 5 days of interruption
Penalty Warning
Late remittance penalties range from 3% to 20% depending on frequency. Directors can be personally liable.
Simplify Payroll
Use payroll software or outsource to ensure accuracy and timely remittances.
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Tax Punjabi offers complete payroll management for small businesses.