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\title{Canadian Payroll Administration (2025)}
\date{Jun 22, 2025}
\release{HR}
\author{Alexandre Bobkov}
\newcommand{\sphinxlogo}{\vbox{}}
\renewcommand{\releasename}{Release}
\makeindex
\begin{document}

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\phantomsection\label{\detokenize{index::doc}}


\begin{sphinxVerbatim}[commandchars=\\\{\}]
Python 3.12.3
\end{sphinxVerbatim}

\begin{sphinxVerbatim}[commandchars=\\\{\}]
5
\end{sphinxVerbatim}

\sphinxstepscope


\chapter{INTRODUCTION}
\label{\detokenize{introduction:introduction}}\label{\detokenize{introduction::doc}}
\sphinxAtStartPar
In this course you’ll learn about the various government agencies and legislation that impact payroll
from both the employer’s and the employee’s perspective. Moreover, you’ll learn the information
and processes necessary to produce payroll at the employee level.

\sphinxAtStartPar
The objective of the payroll function is to pay employees \sphinxstylestrong{accurately and on time} while remaining
compliant with legislation across a full annual payroll cycle. In this course, you’ll cover:
\begin{itemize}
\item {} 
\sphinxAtStartPar
Payroll’s responsibilities from hiring through to termination.

\item {} 
\sphinxAtStartPar
Payroll compliance legislation in practical scenarios.

\item {} 
\sphinxAtStartPar
Individual pay calculation process.

\end{itemize}


\section{Payroll Legal Framework}
\label{\detokenize{introduction:payroll-legal-framework}}
\sphinxAtStartPar
The Canadian Payroll Administration system is designed to ensure compliance with the legal framework governing payroll in Canada. This includes adherence to federal and provincial regulations regarding employee compensation, deductions, and reporting requirements.
The system is built to handle various payroll scenarios, including different employment types, tax calculations, and benefit deductions, while ensuring that all transactions are accurately recorded and reported in accordance with the law.

\sphinxstepscope


\chapter{Payroll Accounting}
\label{\detokenize{payroll_accounting:payroll-accounting}}\label{\detokenize{payroll_accounting::doc}}

\section{Journal Entries}
\label{\detokenize{payroll_accounting:journal-entries}}

\subsection{Accounting Recap}
\label{\detokenize{payroll_accounting:accounting-recap}}
\begin{center}\(\Sigma \text{ Total Debits} = \Sigma \text{ Total Credits}\)
\end{center}
\begin{center}\(\text{Assets} = \text{Liabilities} + \text{Equity}\)
\end{center}\begin{equation}\label{equation:payroll_accounting:AccountingEquation}
\begin{split}Assets = Liabilities + Equity\end{split}
\end{equation}
\sphinxAtStartPar
Furthermore, we know that:

\begin{center}\(\text{Equity = Revenue - Expenses}\)
, which leads us to:
\end{center}
\begin{center}\(\text{Assets = Liabilities + (Revenues - Expenses)}\)
\end{center}
\sphinxAtStartPar
Accounting equation \eqref{equation:payroll_accounting:AccountingEquation}

\sphinxAtStartPar
Payroll accounting is a critical component of the Canadian Payroll Administration system. It involves the systematic recording, analysis, and reporting of payroll transactions to ensure that all financial aspects of employee compensation are accurately reflected in the organization’s financial statements.
Payroll accounting includes the management of employee wages, tax withholdings, benefit deductions, and other payroll\sphinxhyphen{}related expenses. The system is designed to automate these processes, ensuring accuracy and compliance with Canadian payroll regulations.


\subsection{Journal Entries}
\label{\detokenize{payroll_accounting:id1}}
\sphinxAtStartPar
Journal entries are a key part of payroll accounting, as they document the financial impact of payroll transactions on the organization’s accounts. Each payroll run generates a series of journal entries that reflect the distribution of wages, taxes, and deductions across various accounts.
These entries are essential for maintaining accurate financial records and ensuring that the organization’s financial statements reflect the true cost of employee compensation. The Canadian Payroll Administration system automates the generation of these journal entries, reducing the risk of errors and ensuring compliance with accounting standards.

\begin{DUlineblock}{0em}
\item[] DR    Payroll Expenses    \$10,500.00
\item[]
\begin{DUlineblock}{\DUlineblockindent}
\item[] CR  Payroll Payable   \$10,500.00
\end{DUlineblock}
\end{DUlineblock}

\sphinxstepscope


\chapter{REVIEW QUESTIONS}
\label{\detokenize{review_questions:review-questions}}\label{\detokenize{review_questions::doc}}
\sphinxAtStartPar
This section contains review questions for the material covered in the course. These questions are designed to test your understanding and help reinforce the concepts learned.


\section{New Employee Information}
\label{\detokenize{review_questions:new-employee-information}}
\sphinxAtStartPar
Which one of the following is correct?
a. Choice A
b. Choice B
c. Choice C

\sphinxstepscope


\chapter{OBNOARDING EMPLOYEE}
\label{\detokenize{onboarding_employee:obnoarding-employee}}\label{\detokenize{onboarding_employee::doc}}

\section{Employment Standards Requirements}
\label{\detokenize{onboarding_employee:employment-standards-requirements}}
\sphinxAtStartPar
Each province/territory, as well as the federal government, sets minimum employment standards, including:
\begin{itemize}
\item {} 
\sphinxAtStartPar
Minimum wage

\item {} 
\sphinxAtStartPar
Minimum age (may also be governed by other legislation)

\item {} 
\sphinxAtStartPar
Required pay statement information:
\sphinxhyphen{} Employee name
\sphinxhyphen{} Pay period date
\sphinxhyphen{} Rates of pay and hours worked
\sphinxhyphen{} Gross earnings
\sphinxhyphen{} Itemized deductions
\sphinxhyphen{} Net pay

\end{itemize}


\section{Internal Forms}
\label{\detokenize{onboarding_employee:internal-forms}}
\sphinxAtStartPar
Typical commencement package forms include:
\begin{itemize}
\item {} 
\sphinxAtStartPar
Authorization for hiring

\item {} 
\sphinxAtStartPar
Direct deposit agreement

\item {} 
\sphinxAtStartPar
Union membership application

\item {} 
\sphinxAtStartPar
Benefits enrollment (e.g., health/dental, pension)

\item {} 
\sphinxAtStartPar
Confidentiality agreement

\end{itemize}


\subsection{Authorization for Hiring}
\label{\detokenize{onboarding_employee:authorization-for-hiring}}
\sphinxAtStartPar
This internal document includes:
\begin{itemize}
\item {} 
\sphinxAtStartPar
New employee’s basic info

\item {} 
\sphinxAtStartPar
Start date, department, salary

\item {} 
\sphinxAtStartPar
Probation details

\item {} 
\sphinxAtStartPar
Hiring authority’s signature

\end{itemize}

\sphinxAtStartPar
\sphinxstylestrong{Important:} Employer must obtain a valid SIN. A SIN starting with 9 must have a valid expiry date and associated work permit.


\subsection{Union Membership}
\label{\detokenize{onboarding_employee:union-membership}}
\sphinxAtStartPar
For unionized workplaces:
\begin{itemize}
\item {} 
\sphinxAtStartPar
Union dues are deducted

\item {} 
\sphinxAtStartPar
Employees sign authorization for deduction

\item {} 
\sphinxAtStartPar
Exemptions may apply, but dues equivalent still required

\end{itemize}


\subsection{Benefit Enrollment Forms}
\label{\detokenize{onboarding_employee:benefit-enrollment-forms}}
\sphinxAtStartPar
Forms cover group insurance and pension plans:
\begin{itemize}
\item {} 
\sphinxAtStartPar
Employee indicates coverage type

\item {} 
\sphinxAtStartPar
Signatures authorize payroll deductions

\end{itemize}


\subsection{Confidentiality Agreement}
\label{\detokenize{onboarding_employee:confidentiality-agreement}}
\sphinxAtStartPar
A legally binding agreement protecting sensitive company info:
\begin{itemize}
\item {} 
\sphinxAtStartPar
Defines proprietary data

\item {} 
\sphinxAtStartPar
Outlines responsibilities, penalties, and timeframe

\end{itemize}


\section{Required Federal and Provincial/Territorial Forms}
\label{\detokenize{onboarding_employee:required-federal-and-provincial-territorial-forms}}
\sphinxAtStartPar
\sphinxstylestrong{Purpose:} Determine correct income tax withholdings.

\sphinxAtStartPar
Forms:
\begin{itemize}
\item {} 
\sphinxAtStartPar
TD1 (federal)

\item {} 
\sphinxAtStartPar
TD1 (provincial/territorial)

\item {} 
\sphinxAtStartPar
Québec employees: also TP\sphinxhyphen{}1015.3\sphinxhyphen{}V

\end{itemize}

\sphinxAtStartPar
\sphinxstylestrong{Provincial/territorial withholding} is based on \sphinxstyleemphasis{province of employment}, but tax liability is based on \sphinxstyleemphasis{province of residence}.

\sphinxAtStartPar
\sphinxstylestrong{Adjustments:}
\begin{itemize}
\item {} 
\sphinxAtStartPar
Request extra withholding via TD1 or TP\sphinxhyphen{}1015.3\sphinxhyphen{}V

\item {} 
\sphinxAtStartPar
Request reduction using CRA Form T1213 or RQ Form TP\sphinxhyphen{}1016\sphinxhyphen{}V

\end{itemize}

\sphinxAtStartPar
Essential Info on All Forms:
\begin{itemize}
\item {} 
\sphinxAtStartPar
Employee name

\item {} 
\sphinxAtStartPar
Date of birth

\item {} 
\sphinxAtStartPar
Social Insurance Number

\end{itemize}


\subsection{Tax Credits (TD1)}
\label{\detokenize{onboarding_employee:tax-credits-td1}}\begin{enumerate}
\sphinxsetlistlabels{\arabic}{enumi}{enumii}{}{.}%
\item {} 
\sphinxAtStartPar
Basic personal amount

\item {} 
\sphinxAtStartPar
Canada caregiver (infirm children)

\item {} 
\sphinxAtStartPar
Age amount

\item {} 
\sphinxAtStartPar
Pension income

\item {} 
\sphinxAtStartPar
Tuition

\item {} 
\sphinxAtStartPar
Disability

\item {} 
\sphinxAtStartPar
Spouse/common\sphinxhyphen{}law partner amount

\item {} 
\sphinxAtStartPar
Eligible dependant

\item {} 
\sphinxAtStartPar
Caregiver for infirm spouse or dependant

\item {} 
\sphinxAtStartPar
Caregiver for dependant age 18+

\item {} 
\sphinxAtStartPar
Transfers from spouse

\item {} 
\sphinxAtStartPar
Transfers from dependant

\item {} 
\sphinxAtStartPar
Total

\end{enumerate}

\sphinxAtStartPar
Additional Instructions:
\begin{itemize}
\item {} 
\sphinxAtStartPar
Fill out TD1 only if claiming more than basic credit

\item {} 
\sphinxAtStartPar
Québec employees must always complete TP\sphinxhyphen{}1015.3\sphinxhyphen{}V

\end{itemize}


\subsection{Tax Credits (TP\sphinxhyphen{}1015.3\sphinxhyphen{}V \textendash{} Québec)}
\label{\detokenize{onboarding_employee:tax-credits-tp-1015-3-v-quebec}}\begin{itemize}
\item {} 
\sphinxAtStartPar
Basic amount

\item {} 
\sphinxAtStartPar
Transfer from spouse

\item {} 
\sphinxAtStartPar
Amount for dependants

\item {} 
\sphinxAtStartPar
Impairment in mental/physical function

\item {} 
\sphinxAtStartPar
Age amount, retirement income, living alone

\item {} 
\sphinxAtStartPar
Career extension

\end{itemize}

\sphinxAtStartPar
Deductions:
\begin{itemize}
\item {} 
\sphinxAtStartPar
Remote area housing

\item {} 
\sphinxAtStartPar
Deductible support payments

\end{itemize}


\section{Content Review Highlights}
\label{\detokenize{onboarding_employee:content-review-highlights}}\begin{itemize}
\item {} 
\sphinxAtStartPar
Consent is required for personal info collection

\item {} 
\sphinxAtStartPar
TD1 and TP\sphinxhyphen{}1015.3\sphinxhyphen{}V are used to calculate source deductions

\item {} 
\sphinxAtStartPar
Claim amounts may differ between federal and provincial forms

\item {} 
\sphinxAtStartPar
Employers must keep the forms on file (do not send to CRA/RQ)

\end{itemize}


\section{Review Questions (Sample)}
\label{\detokenize{onboarding_employee:review-questions-sample}}\begin{enumerate}
\sphinxsetlistlabels{\arabic}{enumi}{enumii}{}{.}%
\item {} 
\sphinxAtStartPar
What does an offer letter signature signify?

\item {} 
\sphinxAtStartPar
What documents are included in a commencement package?

\item {} 
\sphinxAtStartPar
Name three common internal forms

\item {} 
\sphinxAtStartPar
What must payroll verify on a hiring form?

\item {} 
\sphinxAtStartPar
What must be checked for SINs starting with “9”?

\item {} 
\sphinxAtStartPar
True/False: Union dues can be deducted without consent.

\item {} 
\sphinxAtStartPar
What authorizes benefit premium deductions?

\end{enumerate}


\section{Example Evaluations}
\label{\detokenize{onboarding_employee:example-evaluations}}
\sphinxAtStartPar
\sphinxstylestrong{Gloria Meyer (Alberta):}
\sphinxhyphen{} Claimed: Basic, eligible dependant, transferred tuition
\sphinxhyphen{} Appears accurate

\sphinxAtStartPar
\sphinxstylestrong{Luc Laframboise (Québec):}
\sphinxhyphen{} Claimed: Basic, spouse, dependant in school, tuition transfer
\sphinxhyphen{} Appropriate provincial and federal claims made

\sphinxAtStartPar
\sphinxstylestrong{Ingrid Johansson (Alberta, Single Parent):}
\sphinxhyphen{} Claimed credits for two children
\sphinxhyphen{} \sphinxstylestrong{Overclaimed} dependant credit \textendash{} only one is eligible
\sphinxhyphen{} Needs correction on federal and AB TD1 forms

\sphinxstepscope


\chapter{RATES FOR 2025}
\label{\detokenize{rates_2025:rates-for-2025}}\label{\detokenize{rates_2025::doc}}

\section{CANADA / QUEBEC PENSION PLAN (CPP / QPP)}
\label{\detokenize{rates_2025:canada-quebec-pension-plan-cpp-qpp}}

\begin{savenotes}\sphinxattablestart
\sphinxthistablewithglobalstyle
\raggedright
\sphinxcapstartof{table}
\sphinxthecaptionisattop
\sphinxcaption{CANADA / QUEBEC PENSION PLAN (CPP / QPP)}\label{\detokenize{rates_2025:id1}}
\sphinxaftertopcaption
\begin{tabular}[t]{\X{130}{190}\X{30}{190}\X{30}{190}}
\sphinxtoprule
\sphinxstyletheadfamily 
\sphinxAtStartPar
Description
&\sphinxstyletheadfamily 
\sphinxAtStartPar
CPP
&\sphinxstyletheadfamily 
\sphinxAtStartPar
QPP
\\
\sphinxmidrule
\sphinxtableatstartofbodyhook
\sphinxAtStartPar
Yearly maximum pensionable earnings
&
\sphinxAtStartPar
\$71,300
&
\sphinxAtStartPar
\$
\\
\sphinxhline
\sphinxAtStartPar
Annual maximum contributory earnings
&
\sphinxAtStartPar
\$67,800
&
\sphinxAtStartPar
\$
\\
\sphinxhline
\sphinxAtStartPar
Annual maximum contribution
&
\sphinxAtStartPar
\$3,500
&
\sphinxAtStartPar
\$
\\
\sphinxhline
\sphinxAtStartPar
Employee contribution rate
&
\sphinxAtStartPar
5.95\%
&\\
\sphinxhline
\sphinxAtStartPar
Employer contribution rate
&
\sphinxAtStartPar
5.95\%
&\\
\sphinxhline
\sphinxAtStartPar
Basic exemption (Annual)
&
\sphinxAtStartPar
\$3,500
&\\
\sphinxhline\begin{quote}

\sphinxAtStartPar
Basic exemption (Monthly, 12)
\end{quote}
&
\sphinxAtStartPar
\$291.67
&
\sphinxAtStartPar
\$
\\
\sphinxhline\begin{quote}

\sphinxAtStartPar
Basic exemption (Weekly, 52)
\end{quote}
&
\sphinxAtStartPar
\$67.31
&
\sphinxAtStartPar
\$
\\
\sphinxhline\begin{quote}

\sphinxAtStartPar
Basic exemption (Weekly, 53)
\end{quote}
&
\sphinxAtStartPar
\$66.04
&
\sphinxAtStartPar
\$
\\
\sphinxhline\begin{quote}

\sphinxAtStartPar
Basic exemption (Semi\sphinxhyphen{}monthly, 24)
\end{quote}
&
\sphinxAtStartPar
\$145.83
&
\sphinxAtStartPar
\$
\\
\sphinxhline\begin{quote}

\sphinxAtStartPar
Basic exemption (Bi\sphinxhyphen{}weekly, 26)
\end{quote}
&
\sphinxAtStartPar
\$134.61
&
\sphinxAtStartPar
\$
\\
\sphinxbottomrule
\end{tabular}
\sphinxtableafterendhook\par
\sphinxattableend\end{savenotes}


\section{CPP2 CONTRIBUTION RATES MAXIMUMS}
\label{\detokenize{rates_2025:cpp2-contribution-rates-maximums}}

\begin{savenotes}\sphinxattablestart
\sphinxthistablewithglobalstyle
\raggedright
\sphinxcapstartof{table}
\sphinxthecaptionisattop
\sphinxcaption{CPP2 Contribution Rates Maximums}\label{\detokenize{rates_2025:id2}}
\sphinxaftertopcaption
\begin{tabular}[t]{\X{130}{160}\X{30}{160}}
\sphinxtoprule
\sphinxstyletheadfamily 
\sphinxAtStartPar
Description
&\sphinxstyletheadfamily 
\sphinxAtStartPar
Ammount
\\
\sphinxmidrule
\sphinxtableatstartofbodyhook
\sphinxAtStartPar
Additional maximum annual pensionable earnings
&
\sphinxAtStartPar
\$81,200
\\
\sphinxhline
\sphinxAtStartPar
Employee and employer contribution rate
&
\sphinxAtStartPar
4\%
\\
\sphinxhline
\sphinxAtStartPar
Maximum employee and employer contribution
&
\sphinxAtStartPar
\$396
\\
\sphinxhline
\sphinxAtStartPar
Maimum annual self\sphinxhyphen{}employed contribution
&
\sphinxAtStartPar
\$792
\\
\sphinxbottomrule
\end{tabular}
\sphinxtableafterendhook\par
\sphinxattableend\end{savenotes}


\section{References}
\label{\detokenize{rates_2025:references}}
\sphinxAtStartPar
\sphinxhref{https://laws-lois.justice.gc.ca/eng/acts/C-8/page-5.html\#docCont}{CPP Maximum contributory earnings}

\sphinxAtStartPar
\sphinxhref{https://laws-lois.justice.gc.ca/eng/acts/C-8/page-3.html\#docCont}{Second additional CPP contributions}

\sphinxstepscope


\chapter{REFERENCES}
\label{\detokenize{references:references}}\label{\detokenize{references::doc}}
\sphinxstepscope


\chapter{Errors and Errata}
\label{\detokenize{errata:errors-and-errata}}\label{\detokenize{errata::doc}}

\chapter{Glossary}
\label{\detokenize{index:glossary}}\begin{itemize}
\item {} 
\sphinxAtStartPar
\DUrole{xref}{\DUrole{std}{\DUrole{std-ref}{genindex}}}

\end{itemize}



\renewcommand{\indexname}{Index}
\printindex
\end{document}