compliance

docs/build/html/2_compliance.html

@@ -44,6 +44,24 @@
 <h1><span class="section-number">2. </span>PAYROLL COMPLIANCE<a class="headerlink" href="#payroll-compliance" title="Link to this heading">¶</a></h1>
 <section id="the-canada-revenue-agency">
 <h2><span class="section-number">2.1. </span>The Canada Revenue Agency<a class="headerlink" href="#the-canada-revenue-agency" title="Link to this heading">¶</a></h2>
+<p>Under the Canada Pension Plan Act and the Employment Insurance Act, the CRA is
+responsible for determining:</p>
+<blockquote>
+<div><ul class="simple">
+<li><p>whether or not an individual’s employment is pensionable under the Canada Pension</p></li>
+</ul>
+</div></blockquote>
+<p>Plan Act or insurable under the Employment Insurance Act</p>
+<blockquote>
+<div><ul class="simple">
+<li><p>the types of earnings that are considered pensionable or insurable</p></li>
+<li><p>how many hours an insured person has in insurable employment</p></li>
+<li><p>the recovery of any debts owed as a result of an overpayment of Canada Pension</p></li>
+</ul>
+</div></blockquote>
+<p>Plan, Employment Insurance, or Old Age Security benefits</p>
+<p>The CRA is also responsible for ensuring that CPP contributions and EI premiums are
+deducted, remitted and reported as required by legislation.</p>
 <p>The Canada Revenue Agency (CRA) is a federal government agency that manages the
 following business lines for the federal government: Tax Services and Benefit Programs.
 The Tax Services business line assists over 25 million individuals, businesses, trusts, and
@@ -77,11 +95,53 @@ economic and social well-being of Canadians.</p>
 <li><p>Income Tax</p></li>
 </ul>
 </div></blockquote>
+<p>Each of these programs requires compliance by employers to withhold deductions from their
+employees’ pay for CPP contributions, EI premiums and income tax deductions. These
+withholdings are termed statutory deductions as the deductions are required under legislative
+statute. Statutory deductions are the first deductions to be withheld from an employee’s gross
+pay.</p>
 <section id="canada-pension-plan-cpp">
 <h3><span class="section-number">2.1.1. </span>Canada Pension Plan (CPP)<a class="headerlink" href="#canada-pension-plan-cpp" title="Link to this heading">¶</a></h3>
+<p>The Canada Pension Plan became operational on January 1, 1966. The plan was fully
+effective in 1976 after a ten year transitional period.
+The Canada Pension Plan is a social insurance program, legislated under the federal Canada
+Pension Plan Act, designed to provide protection in the form of benefits to contributors and
+their families against loss of income due to retirement. In addition to retirement pension
+benefits, the plan provides supplementary benefits in the form of:</p>
+<blockquote>
+<div><ul class="simple">
+<li><p>surviving spouse pensions</p></li>
+<li><p>disability benefits</p></li>
+<li><p>benefits for orphans and children of disabled contributors</p></li>
+<li><p>death benefits payable upon the death of a contributor</p></li>
+</ul>
+</div></blockquote>
+<p>All employers are required by law to deduct CPP contributions from pensionable earnings
+paid to their employees, and to remit these deductions, along with the employer’s portion, to
+the CRA. The employer matches the employee’s contributions dollar for dollar.</p>
+<p><em>Example:</em></p>
+<p>Janet Frank has $45.00 in CPP contributions deducted from her gross pay. Her employer,
+Northern Skies, must match her contribution of $45.00. A total of $90.00 in CPP
+contributions must be remitted to the CRA.</p>
+<p>CPP contributions take priority over all other deductions and are therefore the first statutory
+deduction to be withheld from an employee’s gross pay.</p>
 </section>
 <section id="employment-insurance-ei">
 <h3><span class="section-number">2.1.2. </span>Employment Insurance (EI)<a class="headerlink" href="#employment-insurance-ei" title="Link to this heading">¶</a></h3>
+<p>The CRA’s responsibility for the Employment Insurance program is associated with the
+collection of employee and employer premiums. It also makes decisions about which types of
+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>
+<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>
+<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
+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>

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

@@ -5,6 +5,22 @@ PAYROLL COMPLIANCE
 The Canada Revenue Agency
 ~~~~~~~~~~~~~~~~~~~~~~~~~~~
 
+Under the Canada Pension Plan Act and the Employment Insurance Act, the CRA 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 CRA is also responsible for ensuring that CPP contributions and EI premiums are
+deducted, remitted and reported as required by legislation.
+
 The Canada Revenue Agency (CRA) is a federal government agency that manages the
 following business lines for the federal government: Tax Services and Benefit Programs.
 The Tax Services business line assists over 25 million individuals, businesses, trusts, and
@@ -39,12 +55,61 @@ The CRA's program responsibilities that are specifically related to payroll incl
 
   - Income Tax
 
+Each of these programs requires compliance by employers to withhold deductions from their
+employees' pay for CPP contributions, EI premiums and income tax deductions. These
+withholdings are termed statutory deductions as the deductions are required under legislative
+statute. Statutory deductions are the first deductions to be withheld from an employee's gross
+pay.
+
 Canada Pension Plan (CPP)
 --------------------------
 
+The Canada Pension Plan became operational on January 1, 1966. The plan was fully
+effective in 1976 after a ten year transitional period.
+The Canada Pension Plan is a social insurance program, legislated under the federal Canada
+Pension Plan Act, designed to provide protection in the form of benefits to contributors and
+their families against loss of income due to retirement. In addition to retirement pension
+benefits, the plan provides supplementary benefits in the form of:
+
+  - surviving spouse pensions
+  - disability benefits
+  - benefits for orphans and children of disabled contributors
+  - death benefits payable upon the death of a contributor
+
+All employers are required by law to deduct CPP contributions from pensionable earnings
+paid to their employees, and to remit these deductions, along with the employer's portion, to
+the CRA. The employer matches the employee's contributions dollar for dollar.
+
+*Example:*
+
+Janet Frank has $45.00 in CPP contributions deducted from her gross pay. Her employer,
+Northern Skies, must match her contribution of $45.00. A total of $90.00 in CPP
+contributions must be remitted to the CRA.
+
+CPP contributions take priority over all other deductions and are therefore the first statutory
+deduction to be withheld from an employee's gross pay.
+
 Employment Insurance (EI)
 --------------------------
 
+The CRA's responsibility for the Employment Insurance program is associated with the
+collection of employee and employer premiums. It also makes decisions about which types of
+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.
+
+*Example:*
+
+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.
+
+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
+terminated or inactive employee.
+
 Income Tax
 ----------