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Home / Tolley's Global Mobility: Employment Taxes (Worldwide excluding Europe) /Canada /1. Payroll basics / 1.1 Introduction: overview of the domestic payroll system
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1.1 Introduction: overview of the domestic payroll system

Canada

1.1ÌýÌýÌýÌý Introduction: overview of the domestic payroll system

The tax year in Canada is the calendar year and the tax system is administered by the Canada Revenue Agency (CRA). Canada is a federal country, with payroll obligations at both federal and province/territory level. Provincial/territorial obligations may be governed by their own budgets and they may impose their own employer levies. This guide examines the federal system, with reference also being made to Québec.

Employers are responsible for making deductions and remittances from employee payment and for reporting these actions. Employers must make statutory deductions in every regular pay period basis. These statutory deductions are:

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    •ÌýÌýÌýÌý employment insurance (EI) premiums

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