compliance

docs/build/html/2_compliance.html

@@ -135,10 +135,12 @@ remuneration are considered insurable and, therefore, subject to EI premiums.
 All employers are required by law to deduct EI premiums from the insurable earnings paid to
 their employees, and remit these deductions, along with the employer’s portion, to the CRA.
 The employer’s portion is 1.4 times the employee’s portion.</p>
-<p><em>Example:</em></p>
+<div class="admonition-example admonition">
+<p class="admonition-title">EXAMPLE</p>
 <p>Janet Frank has $20.00 in EI premiums deducted from her gross pay. Her employer, Northern
 Skies must contribute $28.00 ($20.00 x 1.4). A total of $48.00 in EI premiums must be
 remitted to the CRA.</p>
+</div>
 <p>EI premiums are the second statutory deduction to be withheld from an employee’s pay.
 Employers are also required to track the employee’s insurable earnings and insurable hours
 by pay period for reporting purposes, such as completing the Record of Employment for a
@@ -146,10 +148,72 @@ terminated or inactive employee.</p>
 </section>
 <section id="income-tax">
 <h3><span class="section-number">2.1.3. </span>Income Tax<a class="headerlink" href="#income-tax" title="Link to this heading">¶</a></h3>
+<p>Income taxation began in Canada, and in many other countries, during World War I. In July
+1917, the Government of Canada passed legislation which enabled the government to levy a
+temporary tax on personal income. This tax was intended to help finance government
+expenditures for World War I; however, it eventually became the basic tax on all incomes.</p>
+<p>When income tax was first introduced, each person was responsible for paying their own
+income tax directly to the federal government. In 1940, the federal government legislated
+deductions at source, which meant that employers became responsible for withholding
+income tax from remuneration paid to employees. Beginning January 1, 1962, all provinces
+imposed personal income tax; prior to that date, only Québec imposed such a tax.</p>
+<p>Income tax withholdings are calculated by applying a federal tax rate and a separate
+provincial/territorial tax rate to the employee’s taxable income. The employee’s province of
+employment determines which provincial/territorial tax rate to apply. The federal
+government and all provinces and territories, except Québec, have the same definition of
+taxable income.</p>
+<p>All Canadian provinces/territories, except Québec, have entered into tax collection
+agreements with the federal government. Under these agreements the CRA collects the
+provincial/territorial income taxes on behalf of the provinces/territories. The CRA then
+distributes the provincial/territorial income taxes it has collected through a series of transfer
+payments to the provinces/territories. These transfer payments are based on the personal tax
+returns filed by Canadian taxpayers.</p>
+<p>As the federal government collects both the federal and the provincial/territorial portions of
+tax from all employees working in a province/territory other than Québec, the two tax
+withholdings, federal and provincial/territorial, are combined into one deduction amount. The
+employee may only see one item <em>Income Tax</em> or <em>Federal Income Tax</em> listed on their pay
+statement, however it is the total of two withholdings.</p>
+<p>Québec collects its own provincial income tax. There are two separate income tax deductions
+withheld from Québec employees — one for federal income tax and the other for Québec
+provincial income tax. The federal income tax is remitted to the CRA and the Québec
+provincial income tax is remitted to Revenu Québec (RQ). Québec employees will see
+<em>Federal Income Tax</em> and <em>Québec Income Tax</em> listed separately on their pay statements.
+RQ is discussed extensively in a later chapter.</p>
 </section>
 </section>
 <section id="non-compliance-penalties">
 <h2><span class="section-number">2.2. </span>Non-Compliance Penalties<a class="headerlink" href="#non-compliance-penalties" title="Link to this heading">¶</a></h2>
+<p>If an organization fails to deduct and remit the amounts withheld from employees for CPP
+contributions, EI premiums and income tax, it may be left in the position of having to pay
+both the employer’s and the employee’s portion of deductions not taken, as well as penalties
+and interest charges on the outstanding amount.</p>
+<p>An employer who remits withholdings or deductions late is subject to the following
+penalties:</p>
+<blockquote>
+<div><ul class="simple">
+<li><p>3% will be applied to remittances that are 1 to 3 days late</p></li>
+<li><p>5% for remittances that are 4 or 5 days late</p></li>
+<li><p>7% for remittances that are 6 or 7 days late</p></li>
+<li><p>10% for remittances that are 8 or more days late</p></li>
+</ul>
+</div></blockquote>
+<p>An employer who withholds the statutory deductions but does not remit them, or fails to
+deduct the required deductions, will be subject to a 10% penalty for the first occurrence on
+the amount that should have been deducted and remitted. This penalty may increase to 20%
+for the second and each subsequent occurrence in the same calendar year if the failure was
+made knowingly or under circumstances of gross negligence. Penalties will be applied to
+amounts in excess of $500; however, in the case of wilful delay or deficiency, these penalties
+can be levied on amounts of less than $500.</p>
+<p>The Canada Revenue Agency (CRA) charges interest on any unpaid remittances and unpaid
+penalties from the day the payment was due. The interest rate is determined every three
+months, in accordance with the prescribed interest rates, and is available on the CRA
+website.</p>
+<p>As a payroll practitioner, you need to have a clear understanding of how and when to make
+the required deductions and remittances to avoid these penalties and interest charges.</p>
+<p>All monies deducted on behalf of the CRA are considered to be held “in trust” for the
+Receiver General. The amount owed must be kept separate from the operating funds of the
+organization. In the event of estate liquidation, assignment, receivership, or bankruptcy the
+trust money for statutory deductions is still owed to the CRA.</p>
 </section>
 <section id="employment-and-social-development-canada-esdc">
 <h2><span class="section-number">2.3. </span>Employment and Social Development Canada (ESDC)<a class="headerlink" href="#employment-and-social-development-canada-esdc" title="Link to this heading">¶</a></h2>
@@ -181,6 +245,23 @@ terminated or inactive employee.</p>
 <section id="employment-equity-act">
 <h2><span class="section-number">2.9. </span>Employment Equity Act<a class="headerlink" href="#employment-equity-act" title="Link to this heading">¶</a></h2>
 </section>
+<section id="content-review">
+<h2><span class="section-number">2.10. </span>Content Review<a class="headerlink" href="#content-review" title="Link to this heading">¶</a></h2>
+<blockquote>
+<div><ul class="simple">
+<li><p>Under the Canada Pension Plan Act and the Employment Insurance Act, the Canada Revenue Agency is responsible for determining:
+- whether or not an individual’s employment is pensionable under the Canada Pension Plan Act or insurable under the Employment Insurance Act
+- the types of earnings that are considered pensionable or insurable
+- how many hours an insured person has in insurable employment
+- the recovery of any debts owed as a result of an overpayment of Canada Pension Plan, Employment Insurance, or Old Age Security benefits</p></li>
+<li><p>The Canada Revenue Agency is responsible for ensuring that Canada Pension Plan contributions and Employment Insurance premiums are deducted, remitted, and reported as required by legislation.</p></li>
+<li><p>The Canada Revenue Agency collects provincial/territorial income taxes on behalf of all provinces/territories except Québec.</p></li>
+<li><p>Revenu Québec collects the provincial income tax for the province of Québec.</p></li>
+<li><p>Employers who remit withholdings or deductions late, withhold the statutory deductions but do not remit them, or fail to deduct the required deductions will be subject to penalties, which may increase on subsequent occurrences, plus interest charges.</p></li>
+<li><p>All monies deducted on behalf of the Canada Revenue Agency are considered to be held “in trust” for the Receiver General.</p></li>
+</ul>
+</div></blockquote>
+</section>
 </section>
 
 
@@ -215,6 +296,7 @@ terminated or inactive employee.</p>
 <li><a class="reference internal" href="#pension-benefits-standards-act">2.7. Pension Benefits Standards Act</a></li>
 <li><a class="reference internal" href="#canadian-human-rights-act">2.8. Canadian Human Rights Act</a></li>
 <li><a class="reference internal" href="#employment-equity-act">2.9. Employment Equity Act</a></li>
+<li><a class="reference internal" href="#content-review">2.10. Content Review</a></li>
 </ul>
 </li>
 </ul>

docs/build/html/_sources/2_compliance.rst.txt

@@ -99,11 +99,11 @@ All employers are required by law to deduct EI premiums from the insurable earni
 their employees, and remit these deductions, along with the employer's portion, to the CRA.
 The employer's portion is 1.4 times the employee's portion.
 
-*Example:*
+.. admonition:: EXAMPLE
 
-Janet Frank has $20.00 in EI premiums deducted from her gross pay. Her employer, Northern
+    Janet Frank has $20.00 in EI premiums deducted from her gross pay. Her employer, Northern
-Skies must contribute $28.00 ($20.00 x 1.4). A total of $48.00 in EI premiums must be
+    Skies must contribute $28.00 ($20.00 x 1.4). A total of $48.00 in EI premiums must be
-remitted to the CRA.
+    remitted to the CRA.
 
 EI premiums are the second statutory deduction to be withheld from an employee's pay.
 Employers are also required to track the employee's insurable earnings and insurable hours
@@ -113,9 +113,79 @@ terminated or inactive employee.
 Income Tax
 ----------
 
+Income taxation began in Canada, and in many other countries, during World War I. In July
+1917, the Government of Canada passed legislation which enabled the government to levy a
+temporary tax on personal income. This tax was intended to help finance government
+expenditures for World War I; however, it eventually became the basic tax on all incomes.
+
+When income tax was first introduced, each person was responsible for paying their own
+income tax directly to the federal government. In 1940, the federal government legislated
+deductions at source, which meant that employers became responsible for withholding
+income tax from remuneration paid to employees. Beginning January 1, 1962, all provinces
+imposed personal income tax; prior to that date, only Québec imposed such a tax.
+
+Income tax withholdings are calculated by applying a federal tax rate and a separate
+provincial/territorial tax rate to the employee's taxable income. The employee's province of
+employment determines which provincial/territorial tax rate to apply. The federal
+government and all provinces and territories, except Québec, have the same definition of
+taxable income.
+
+All Canadian provinces/territories, except Québec, have entered into tax collection
+agreements with the federal government. Under these agreements the CRA collects the
+provincial/territorial income taxes on behalf of the provinces/territories. The CRA then
+distributes the provincial/territorial income taxes it has collected through a series of transfer
+payments to the provinces/territories. These transfer payments are based on the personal tax
+returns filed by Canadian taxpayers.
+
+As the federal government collects both the federal and the provincial/territorial portions of
+tax from all employees working in a province/territory other than Québec, the two tax
+withholdings, federal and provincial/territorial, are combined into one deduction amount. The
+employee may only see one item *Income Tax* or *Federal Income Tax* listed on their pay
+statement, however it is the total of two withholdings.
+
+Québec collects its own provincial income tax. There are two separate income tax deductions
+withheld from Québec employees — one for federal income tax and the other for Québec
+provincial income tax. The federal income tax is remitted to the CRA and the Québec
+provincial income tax is remitted to Revenu Québec (RQ). Québec employees will see
+*Federal Income Tax* and *Québec Income Tax* listed separately on their pay statements.
+RQ is discussed extensively in a later chapter.
+
 Non-Compliance Penalties
 ~~~~~~~~~~~~~~~~~~~~~~~~~
 
+If an organization fails to deduct and remit the amounts withheld from employees for CPP
+contributions, EI premiums and income tax, it may be left in the position of having to pay
+both the employer's and the employee's portion of deductions not taken, as well as penalties
+and interest charges on the outstanding amount.
+
+An employer who remits withholdings or deductions late is subject to the following
+penalties:
+  - 3% will be applied to remittances that are 1 to 3 days late
+  - 5% for remittances that are 4 or 5 days late
+  - 7% for remittances that are 6 or 7 days late
+  - 10% for remittances that are 8 or more days late
+
+An employer who withholds the statutory deductions but does not remit them, or fails to
+deduct the required deductions, will be subject to a 10% penalty for the first occurrence on
+the amount that should have been deducted and remitted. This penalty may increase to 20%
+for the second and each subsequent occurrence in the same calendar year if the failure was
+made knowingly or under circumstances of gross negligence. Penalties will be applied to
+amounts in excess of $500; however, in the case of wilful delay or deficiency, these penalties
+can be levied on amounts of less than $500.
+
+The Canada Revenue Agency (CRA) charges interest on any unpaid remittances and unpaid
+penalties from the day the payment was due. The interest rate is determined every three
+months, in accordance with the prescribed interest rates, and is available on the CRA
+website.
+
+As a payroll practitioner, you need to have a clear understanding of how and when to make
+the required deductions and remittances to avoid these penalties and interest charges.
+
+All monies deducted on behalf of the CRA are considered to be held “in trust” for the
+Receiver General. The amount owed must be kept separate from the operating funds of the
+organization. In the event of estate liquidation, assignment, receivership, or bankruptcy the
+trust money for statutory deductions is still owed to the CRA.
+
 Employment and Social Development Canada (ESDC)
 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
 
@@ -145,3 +215,22 @@ Canadian Human Rights Act
 
 Employment Equity Act
 ~~~~~~~~~~~~~~~~~~~~~~~~~~
+
+Content Review
+~~~~~~~~~~~~~~~~
+
+  - Under the Canada Pension Plan Act and the Employment Insurance Act, the Canada Revenue Agency is responsible for determining:
+    - whether or not an individual's employment is pensionable under the Canada Pension Plan Act or insurable under the Employment Insurance Act
+    - the types of earnings that are considered pensionable or insurable
+    - how many hours an insured person has in insurable employment
+    - the recovery of any debts owed as a result of an overpayment of Canada Pension Plan, Employment Insurance, or Old Age Security benefits
+
+  - The Canada Revenue Agency is responsible for ensuring that Canada Pension Plan contributions and Employment Insurance premiums are deducted, remitted, and reported as required by legislation.
+
+  - The Canada Revenue Agency collects provincial/territorial income taxes on behalf of all provinces/territories except Québec.
+
+  - Revenu Québec collects the provincial income tax for the province of Québec.
+
+  - Employers who remit withholdings or deductions late, withhold the statutory deductions but do not remit them, or fail to deduct the required deductions will be subject to penalties, which may increase on subsequent occurrences, plus interest charges.
+
+  - All monies deducted on behalf of the Canada Revenue Agency are considered to be held “in trust” for the Receiver General.

docs/build/html/index.html

@@ -91,6 +91,7 @@ to confidently perform essential payroll functions encountered in day-to-day ope
 <li class="toctree-l2"><a class="reference internal" href="2_compliance.html#pension-benefits-standards-act">2.7. Pension Benefits Standards Act</a></li>
 <li class="toctree-l2"><a class="reference internal" href="2_compliance.html#canadian-human-rights-act">2.8. Canadian Human Rights Act</a></li>
 <li class="toctree-l2"><a class="reference internal" href="2_compliance.html#employment-equity-act">2.9. Employment Equity Act</a></li>
+<li class="toctree-l2"><a class="reference internal" href="2_compliance.html#content-review">2.10. Content Review</a></li>
 </ul>
 </li>
 <li class="toctree-l1"><a class="reference internal" href="3_contracts.html">3. EMPLOYEE vs. INDEPENDENT CONTRACTOR</a><ul>

docs/build/simplepdf/.buildinfo

@@ -1,4 +1,4 @@
 # Sphinx build info version 1
 # This file records the configuration used when building these files. When it is not found, a full rebuild will be done.
-config: 7f705e161af66be25d774b420107767a
+config: 73982ffa92355aaec69f76ff3b11a4cc
 tags: 62a1e7829a13fc7881b6498c52484ec0

docs/build/simplepdf/index.html

@@ -232,6 +232,11 @@
           2.9. Employment Equity Act
          </a>
         </li>
+        <li class="toctree-l2">
+         <a class="reference internal" href="#content-review">
+          2.10. Content Review
+         </a>
+        </li>
        </ul>
       </li>
       <li class="toctree-l1">
@@ -1598,16 +1603,16 @@ All employers are required by law to deduct EI premiums from the insurable earni
 their employees, and remit these deductions, along with the employer&rsquo;s portion, to the CRA.
 The employer&rsquo;s portion is 1.4 times the employee&rsquo;s portion.
            </p>
-           <p>
+           <div class="admonition-example admonition">
-            <em>
+            <p class="admonition-title">
-             Example:
+             EXAMPLE
-            </em>
             </p>
             <p>
              Janet Frank has $20.00 in EI premiums deducted from her gross pay. Her employer, Northern
 Skies must contribute $28.00 ($20.00 x 1.4). A total of $48.00 in EI premiums must be
 remitted to the CRA.
             </p>
+           </div>
            <p>
             EI premiums are the second statutory deduction to be withheld from an employee&rsquo;s pay.
 Employers are also required to track the employee&rsquo;s insurable earnings and insurable hours
@@ -1622,6 +1627,64 @@ terminated or inactive employee.
              &para;
             </a>
            </h4>
+           <p>
+            Income taxation began in Canada, and in many other countries, during World War I. In July
+1917, the Government of Canada passed legislation which enabled the government to levy a
+temporary tax on personal income. This tax was intended to help finance government
+expenditures for World War I; however, it eventually became the basic tax on all incomes.
+           </p>
+           <p>
+            When income tax was first introduced, each person was responsible for paying their own
+income tax directly to the federal government. In 1940, the federal government legislated
+deductions at source, which meant that employers became responsible for withholding
+income tax from remuneration paid to employees. Beginning January 1, 1962, all provinces
+imposed personal income tax; prior to that date, only Qu&eacute;bec imposed such a tax.
+           </p>
+           <p>
+            Income tax withholdings are calculated by applying a federal tax rate and a separate
+provincial/territorial tax rate to the employee&rsquo;s taxable income. The employee&rsquo;s province of
+employment determines which provincial/territorial tax rate to apply. The federal
+government and all provinces and territories, except Qu&eacute;bec, have the same definition of
+taxable income.
+           </p>
+           <p>
+            All Canadian provinces/territories, except Qu&eacute;bec, have entered into tax collection
+agreements with the federal government. Under these agreements the CRA collects the
+provincial/territorial income taxes on behalf of the provinces/territories. The CRA then
+distributes the provincial/territorial income taxes it has collected through a series of transfer
+payments to the provinces/territories. These transfer payments are based on the personal tax
+returns filed by Canadian taxpayers.
+           </p>
+           <p>
+            As the federal government collects both the federal and the provincial/territorial portions of
+tax from all employees working in a province/territory other than Qu&eacute;bec, the two tax
+withholdings, federal and provincial/territorial, are combined into one deduction amount. The
+employee may only see one item
+            <em>
+             Income Tax
+            </em>
+            or
+            <em>
+             Federal Income Tax
+            </em>
+            listed on their pay
+statement, however it is the total of two withholdings.
+           </p>
+           <p>
+            Qu&eacute;bec collects its own provincial income tax. There are two separate income tax deductions
+withheld from Qu&eacute;bec employees &mdash; one for federal income tax and the other for Qu&eacute;bec
+provincial income tax. The federal income tax is remitted to the CRA and the Qu&eacute;bec
+provincial income tax is remitted to Revenu Qu&eacute;bec (RQ). Qu&eacute;bec employees will see
+            <em>
+             Federal Income Tax
+            </em>
+            and
+            <em>
+             Qu&eacute;bec Income Tax
+            </em>
+            listed separately on their pay statements.
+RQ is discussed extensively in a later chapter.
+           </p>
           </section>
          </section>
          <section id="non-compliance-penalties">
@@ -1631,6 +1694,67 @@ terminated or inactive employee.
             &para;
            </a>
           </h3>
+          <p>
+           If an organization fails to deduct and remit the amounts withheld from employees for CPP
+contributions, EI premiums and income tax, it may be left in the position of having to pay
+both the employer&rsquo;s and the employee&rsquo;s portion of deductions not taken, as well as penalties
+and interest charges on the outstanding amount.
+          </p>
+          <p>
+           An employer who remits withholdings or deductions late is subject to the following
+penalties:
+          </p>
+          <blockquote>
+           <div>
+            <ul class="simple">
+             <li>
+              <p>
+               3% will be applied to remittances that are 1 to 3 days late
+              </p>
+             </li>
+             <li>
+              <p>
+               5% for remittances that are 4 or 5 days late
+              </p>
+             </li>
+             <li>
+              <p>
+               7% for remittances that are 6 or 7 days late
+              </p>
+             </li>
+             <li>
+              <p>
+               10% for remittances that are 8 or more days late
+              </p>
+             </li>
+            </ul>
+           </div>
+          </blockquote>
+          <p>
+           An employer who withholds the statutory deductions but does not remit them, or fails to
+deduct the required deductions, will be subject to a 10% penalty for the first occurrence on
+the amount that should have been deducted and remitted. This penalty may increase to 20%
+for the second and each subsequent occurrence in the same calendar year if the failure was
+made knowingly or under circumstances of gross negligence. Penalties will be applied to
+amounts in excess of $500; however, in the case of wilful delay or deficiency, these penalties
+can be levied on amounts of less than $500.
+          </p>
+          <p>
+           The Canada Revenue Agency (CRA) charges interest on any unpaid remittances and unpaid
+penalties from the day the payment was due. The interest rate is determined every three
+months, in accordance with the prescribed interest rates, and is available on the CRA
+website.
+          </p>
+          <p>
+           As a payroll practitioner, you need to have a clear understanding of how and when to make
+the required deductions and remittances to avoid these penalties and interest charges.
+          </p>
+          <p>
+           All monies deducted on behalf of the CRA are considered to be held &ldquo;in trust&rdquo; for the
+Receiver General. The amount owed must be kept separate from the operating funds of the
+organization. In the event of estate liquidation, assignment, receivership, or bankruptcy the
+trust money for statutory deductions is still owed to the CRA.
+          </p>
          </section>
          <section id="employment-and-social-development-canada-esdc">
           <h3>
@@ -1712,6 +1836,54 @@ terminated or inactive employee.
            </a>
           </h3>
          </section>
+         <section id="content-review">
+          <h3>
+           Content Review
+           <a class="headerlink" href="#content-review" title="Link to this heading">
+            &para;
+           </a>
+          </h3>
+          <blockquote>
+           <div>
+            <ul class="simple">
+             <li>
+              <p>
+               Under the Canada Pension Plan Act and the Employment Insurance Act, the Canada Revenue Agency is responsible for determining:
+- whether or not an individual&rsquo;s employment is pensionable under the Canada Pension Plan Act or insurable under the Employment Insurance Act
+- the types of earnings that are considered pensionable or insurable
+- how many hours an insured person has in insurable employment
+- the recovery of any debts owed as a result of an overpayment of Canada Pension Plan, Employment Insurance, or Old Age Security benefits
+              </p>
+             </li>
+             <li>
+              <p>
+               The Canada Revenue Agency is responsible for ensuring that Canada Pension Plan contributions and Employment Insurance premiums are deducted, remitted, and reported as required by legislation.
+              </p>
+             </li>
+             <li>
+              <p>
+               The Canada Revenue Agency collects provincial/territorial income taxes on behalf of all provinces/territories except Qu&eacute;bec.
+              </p>
+             </li>
+             <li>
+              <p>
+               Revenu Qu&eacute;bec collects the provincial income tax for the province of Qu&eacute;bec.
+              </p>
+             </li>
+             <li>
+              <p>
+               Employers who remit withholdings or deductions late, withhold the statutory deductions but do not remit them, or fail to deduct the required deductions will be subject to penalties, which may increase on subsequent occurrences, plus interest charges.
+              </p>
+             </li>
+             <li>
+              <p>
+               All monies deducted on behalf of the Canada Revenue Agency are considered to be held &ldquo;in trust&rdquo; for the Receiver General.
+              </p>
+             </li>
+            </ul>
+           </div>
+          </blockquote>
+         </section>
         </section>
         <span id="document-3_contracts">
         </span>