Federal Payroll Legislation: CRA,
ESDC, Privacy, and Compliance
What are the types of earnings considered
pensionable under the CPP?
Earnings that qualify for CPP contributions,
which are matched by employers.
What is the significance of the Employment
Insurance (EI) program?
To provide temporary financial assistance to
unemployed Canadians.
What does the CRA do to promote
compliance with tax legislation?
It provides communication, quality service,
and responsible enforcement.
,What is the role of the Canada Revenue
Agency (CRA) regarding CPP contributions?
The CRA is responsible for collecting
employee and employer premiums for the
Canada Pension Plan (CPP) and ensuring
they are remitted.
What must employers do with Employment
Insurance (EI) premiums?
Employers are required by law to deduct EI
premiums from insurable earnings and remit
these deductions to the CRA.
How does the employer's portion of EI
premiums compare to the employee's
portion?
The employer's portion is 1.4 times the
employee's portion unless qualifying for a
lower rate under the EI premium reduction
program.
,When was income tax first introduced in
Canada?
Income tax was introduced in Canada in July
1917 during World War I.
What change occurred in 1940 regarding
income tax collection?
The federal government legislated
deductions at source, making employers
responsible for withholding income tax from
employee remuneration.
What is the significance of January 1st, 1962,
in relation to provincial income tax in
Canada?
All provinces began imposing personal
income tax on this date; prior to this, only
Québec had such a tax.
, What happens to provincial/territorial
income taxes collected by the CRA?
The CRA collects these taxes on behalf of
the provinces/territories and distributes
them through transfer payments based on
tax returns.
How are income tax withholdings presented
on pay statements for employees in
provinces other than Québec?
They are combined into one deduction
amount labeled 'Income Tax' or 'Federal
Income Tax'.
What are the penalties for late remittance of
statutory deductions?
Penalties include 3% for 1-3 days late, 5% for
4-5 days late, 7% for 6-7 days late, and 10%
for 8 or more days late.
ESDC, Privacy, and Compliance
What are the types of earnings considered
pensionable under the CPP?
Earnings that qualify for CPP contributions,
which are matched by employers.
What is the significance of the Employment
Insurance (EI) program?
To provide temporary financial assistance to
unemployed Canadians.
What does the CRA do to promote
compliance with tax legislation?
It provides communication, quality service,
and responsible enforcement.
,What is the role of the Canada Revenue
Agency (CRA) regarding CPP contributions?
The CRA is responsible for collecting
employee and employer premiums for the
Canada Pension Plan (CPP) and ensuring
they are remitted.
What must employers do with Employment
Insurance (EI) premiums?
Employers are required by law to deduct EI
premiums from insurable earnings and remit
these deductions to the CRA.
How does the employer's portion of EI
premiums compare to the employee's
portion?
The employer's portion is 1.4 times the
employee's portion unless qualifying for a
lower rate under the EI premium reduction
program.
,When was income tax first introduced in
Canada?
Income tax was introduced in Canada in July
1917 during World War I.
What change occurred in 1940 regarding
income tax collection?
The federal government legislated
deductions at source, making employers
responsible for withholding income tax from
employee remuneration.
What is the significance of January 1st, 1962,
in relation to provincial income tax in
Canada?
All provinces began imposing personal
income tax on this date; prior to this, only
Québec had such a tax.
, What happens to provincial/territorial
income taxes collected by the CRA?
The CRA collects these taxes on behalf of
the provinces/territories and distributes
them through transfer payments based on
tax returns.
How are income tax withholdings presented
on pay statements for employees in
provinces other than Québec?
They are combined into one deduction
amount labeled 'Income Tax' or 'Federal
Income Tax'.
What are the penalties for late remittance of
statutory deductions?
Penalties include 3% for 1-3 days late, 5% for
4-5 days late, 7% for 6-7 days late, and 10%
for 8 or more days late.
