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@@ -427,30 +427,23 @@ The following are some of the available resources:
Legislative Compliance
~~~~~~~~~~~~~~~~~~~~~~~
In addition to payroll's primary role of paying employees accurately and on time, payroll
practitioners are also directly or indirectly responsible for supporting and/or ensuring
compliance with the requirements of various government acts. Where legislation requires
employer compliance (for example, remittance of payroll source deductions, Canada Pension
Plan contributions, Employment Insurance premiums, and federal and provincial/territorial
income tax deductions) there are financial penalties or the possibility of legal action to
encourage compliance.
Payroll plays a critical role not only in ensuring that employees are paid accurately and on time, but also in
supporting and maintaining compliance with numerous government regulations. This includes legislative obligations related to
payroll source deductions, Canada Pension Plan contributions, Employment Insurance premiums, and both federal and
provincial/territorial income tax withholdings. When these obligations are not met, employers may face serious consequences,
including financial penalties or legal enforcement actions designed to ensure compliance.
Fines, penalties and interest charges are typically a result of audits and legal action. These
may result in seizure of bank accounts and/or assets, fines of $1,000 to $25,000, and in some
cases, jail sentences up to 12 months.
Penalties such as fines, interest charges, and legal sanctions often result from audits or investigations into
non-compliance. In more severe cases, enforcement measures may include seizure of bank accounts or assets, and fines.
Government departments and agencies responsible for administering legislation employ a
variety of systems for tracking compliance. Some systems, such as the monitoring of source
deduction remittances, are ongoing, with regimented reporting time frames that lay down a
continual audit trail. Failure to meet the requirements of this legislation will incur a rapid
response that may result in fines and penalties.
To monitor and enforce these requirements, government agencies utilize a range of tracking systems. Some, such as those
used to oversee source deduction remittances, rely on strict reporting schedules that create a consistent audit trail.
Failure to meet these time-sensitive obligations typically triggers a swift response and the imposition of penalties.
Reporting requirements that do not involve ongoing, regular reporting may not impose an
immediate fine but may initiate a visit from an auditor or other official seeking compliance.
Some compliance systems operate quarterly or annually, and the observations raised by these
systems will result in requests for additional information or explanation and, in some cases, a
request for a supplementary payment and/or a fine.
For reporting requirements that are less frequent or ongoing, the consequences of non-compliance may not be immediate.
However, they can lead to scrutiny from auditors or other officials tasked with verifying that payroll practices align with
current legislative standards. Payroll professionals must remain vigilant and informed to protect their organization from
financial and legal risk.
*Example:*