Understanding CPP Contributions for Canadian Employers
Learn how to calculate employee and employer CPP contributions correctly. We cover contribution rates, exemptions, and common mistakes.
Read MorePayroll Accounting in Canada
Master CPP calculations, EI premiums, T4 preparation, and payroll deductions with practical guides and step-by-step resources.
We’ve built this collection to help business owners, payroll administrators, and accounting professionals understand Canada’s payroll system — from the fundamentals of employee remuneration to complex deduction scenarios.
Essential Payroll Resources
Detailed guides covering every aspect of Canadian payroll processing and employee remuneration.
T4 Slip Preparation: Step-by-Step Process
Completing T4 slips doesn’t have to be complicated. This guide walks you through each box, deadlines, and how to file with CRA.
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Payroll Deductions: Tax, Benefits, and Garnishments
A comprehensive breakdown of what gets deducted from paycheques, why, and how to calculate each deduction correctly for different provinces.
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EI Premium Calculations and Remittance Deadlines
Everything you need to know about Employment Insurance premiums — calculating rates by province, remittance schedules, and avoiding late payment penalties.
Read MoreKey Payroll Concepts Explained
Canada Pension Plan (CPP)
A contributory social insurance program. Both employees and employers contribute based on pensionable earnings. You’ll need to calculate contributions monthly and remit them to the CRA by the 15th of the following month.
Employment Insurance (EI)
Provides temporary income support to eligible individuals who lose employment. Employees and employers both contribute. Rates vary by province, and your payroll system must track both portions separately for remittance.
Income Tax Deductions
Federal and provincial tax withholding depends on the employee’s T1 General form and their claimed exemptions. You’re required to deduct and remit these amounts to the CRA on a regular schedule.
Pensionable Earnings
Not all compensation counts toward CPP. Understanding what qualifies — salary, bonuses, overtime — ensures you’re calculating contributions correctly and not over or under-deducting.
Payroll Remittance Timeline
Stay compliant with CRA deadlines and avoid penalties. Here’s what you need to remit and when.
1
Monthly CPP & EI Remittance
Due by the 15th of the following month. Calculate employee and employer portions separately, then remit to the CRA. Employers with more than $3,000 in monthly payroll deductions may need to remit more frequently.
2
Income Tax Deduction Remittance
Schedule depends on your payroll deduction remittance account classification. Most employers remit monthly by the 15th, but some are required to remit bi-weekly or even weekly. Check your CRA notice.
3
Year-End T4 Reporting
T4 slips must be filed by February 28th and issued to employees by February 28th. Include all earnings, deductions, and applicable tax credits. Electronic filing is required for most employers.
4
Annual Reconciliation
File T4 summary with your tax return and reconcile all remittances. This ensures that what you’ve remitted throughout the year matches your reported earnings and deductions.