Canadian Tax And Remittances
Every Deduction Calculated. Every Remittance Filed. Every Deadline Met.
Canadian payroll taxes are not a single line item. They are a layered system of federal contributions, provincial income tax, and jurisdiction-specific levies that must be calculated per employee, per pay period, and remitted to the CRA on a schedule that depends on your total remittance volume.
Miss a deadline or calculate incorrectly, and penalties accumulate fast.
The Layers Of Canadian Payroll Tax
- Federal: CPP And EI
Canada Pension Plan contributions and Employment Insurance premiums are mandatory for most employees. Both have annual maximums that change each January.
Employee and employer portions must be calculated separately and remitted together. We track the annual limits and stop deductions at the correct threshold.
- Provincial Income Tax
Each province sets its own income tax brackets and rates. An employee earning $100,000 in Ontario pays a different provincial tax rate than one earning the same amount in Alberta or Quebec.
We calculate the correct provincial tax for every employee based on their province of employment.
- Québec: QPP And QPIP
Québec does not participate in CPP. Instead, employees contribute to the Québec Pension Plan (QPP) at a higher rate.
Québec also operates the Québec Parental Insurance Plan (QPIP), an additional payroll levy that does not exist in any other province. Both are remitted to Revenu Québec, not the CRA.
- Employer Health Tax (EHT)
Ontario, British Columbia, and Manitoba impose employer-paid health taxes calculated as a percentage of total payroll. Rates and thresholds differ by province. This is an employer-only cost, not deducted from the employee’s pay.
- Workers’ Compensation Premiums
Each province operates its own WCB/WSIB board. Premiums are employer-paid, based on industry classification and payroll volume. We register, classify, and remit for every province where your employees work.
Remittance Schedules And Deadlines
The CRA assigns remittance frequency based on your average monthly withholding amount:
- Regular Remitter – Remittances due by the 15th of the month following the pay period.
- Threshold 1 Accelerated Remitter – Remittances due up to twice per month.
- Threshold 2 Accelerated Remitter – Remittances due up to four times per month.
We manage the schedule for you. Every remittance is filed on time. Late remittance penalties start at 3% for amounts 1 – 3 days late and escalate to 10% for amounts more than 7 days late, plus compound daily interest on the outstanding balance.
We do not let that happen.
Year End Tax Obligations
- T4 slips issued to every employee by the last day of February.
- T4 Summary filed with the CRA by the same deadline.
- Relevé 1 slips filed with Revenu Québec for Québec employees.
- Records of Employment (ROEs) filed electronically with Service Canada whenever an employee has an interruption of earnings.
- T2200 declarations prepared for employees claiming home office expenses, where applicable.
Ready To Stop Worrying About CRA Deadlines?
Book a call. We’ll take the tax and remittance burden off your plate entirely.