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2167 lines
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🍁 Payroll Administration Fall 2025 documentation
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<h1 class="title-cover">
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🍁 Payroll Administration
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</h1>
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<p class="subtitle-cover">
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Version Fall 2025
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<a href="#">
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Table of Contents
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</a>
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</h3>
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<p class="caption" role="heading">
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<span class="caption-text">
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Table of Contents:
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</span>
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</p>
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<ul>
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<li class="toctree-l1">
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<a class="reference internal" href="#preface">
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1. PREFACE
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</a>
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<ul>
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<li class="toctree-l2">
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<a class="reference internal" href="#learning-outcomes">
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1.1. Learning Outcomes
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</a>
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</li>
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<li class="toctree-l2">
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<a class="reference internal" href="#recommended-course-material">
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1.2. Recommended Course Material
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</a>
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</li>
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<li class="toctree-l2">
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<a class="reference internal" href="#material-structure-overview">
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1.3. Material Structure Overview
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</a>
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</li>
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</ul>
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</li>
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<li class="toctree-l1">
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<a class="reference internal" href="#introduction">
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2. INTRODUCTION
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</a>
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<ul>
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<li class="toctree-l2">
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<a class="reference internal" href="#outcomes">
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2.1. Outcomes
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</a>
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</li>
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</ul>
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</li>
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<li class="toctree-l1">
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<a class="reference internal" href="#payroll-accounting">
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3. Payroll Accounting
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</a>
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<ul>
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<li class="toctree-l2">
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<a class="reference internal" href="#journal-entries">
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3.1. Journal Entries
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</a>
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</li>
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</ul>
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</li>
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<li class="toctree-l1">
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<a class="reference internal" href="#review-questions">
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4. REVIEW QUESTIONS
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</a>
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<ul>
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<li class="toctree-l2">
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<a class="reference internal" href="#new-employee-information">
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4.1. New Employee Information
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</a>
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</li>
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</ul>
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</li>
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<li class="toctree-l1">
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<a class="reference internal" href="#obnoarding-employee">
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5. 🍁 OBNOARDING EMPLOYEE 🍁
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</a>
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<ul>
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<li class="toctree-l2">
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<a class="reference internal" href="#internal-forms">
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5.1. Internal Forms
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</a>
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</li>
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<li class="toctree-l2">
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<a class="reference internal" href="#required-federal-and-provincial-territorial-forms">
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5.2. Required Federal and Provincial/Territorial Forms
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</a>
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</li>
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<li class="toctree-l2">
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<a class="reference internal" href="#content-review-highlights">
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5.3. Content Review Highlights
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</a>
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</li>
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<li class="toctree-l2">
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<a class="reference internal" href="#review-questions-sample">
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5.4. Review Questions (Sample)
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</a>
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</li>
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<li class="toctree-l2">
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<a class="reference internal" href="#example-evaluations">
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5.5. Example Evaluations
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</a>
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</li>
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</ul>
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</li>
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<li class="toctree-l1">
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<a class="reference internal" href="#td1">
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6. TD1
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</a>
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<ul>
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<li class="toctree-l2">
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<a class="reference internal" href="#td1-2025-personal-tax-credits-return">
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6.1. TD1 - 2025 Personal Tax Credits Return
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</a>
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</li>
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</ul>
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</li>
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<li class="toctree-l1">
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<a class="reference internal" href="#calculating-net-pay">
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7. CALCULATING NET PAY
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</a>
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<ul>
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<li class="toctree-l2">
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<a class="reference internal" href="#salary">
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7.1. Salary
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</a>
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</li>
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<li class="toctree-l2">
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<a class="reference internal" href="#commission">
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7.2. Commission
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</a>
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</li>
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<li class="toctree-l2">
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<a class="reference internal" href="#pension">
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7.3. Pension
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</a>
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</li>
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</ul>
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</li>
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<li class="toctree-l1">
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<a class="reference internal" href="#rates-for-2025">
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8. RATES FOR 2025
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</a>
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<ul>
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<li class="toctree-l2">
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<a class="reference internal" href="#canada-quebec-pension-plan-cpp-qpp">
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8.1. CANADA / QUEBEC PENSION PLAN (CPP / QPP)
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</a>
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</li>
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<li class="toctree-l2">
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<a class="reference internal" href="#cpp2-contribution-rates-maximums">
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8.2. CPP2 CONTRIBUTION RATES MAXIMUMS
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</a>
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</li>
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<li class="toctree-l2">
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<a class="reference internal" href="#references">
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8.3. References
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</a>
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</li>
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</ul>
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</li>
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<li class="toctree-l1">
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<a class="reference internal" href="#references">
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9. REFERENCES
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</a>
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</li>
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<li class="toctree-l1">
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<a class="reference internal" href="#errors-and-errata">
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10. Errors and Errata
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</a>
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</li>
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<li class="toctree-l1">
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<a class="reference internal" href="#title">
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11. TITLE #
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</a>
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<ul>
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<li class="toctree-l2">
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<a class="reference internal" href="#title">
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11.1. TITLE =
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</a>
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</li>
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</ul>
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</li>
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</ul>
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</div>
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</div>
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</div>
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<div class="document">
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<div class="documentwrapper">
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<div class="bodywrapper">
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<div class="body" role="main">
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<section id="about-the-author">
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<h1>
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ABOUT THE AUTHOR
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<a class="headerlink" href="#about-the-author" title="Link to this heading">
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¶
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</a>
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</h1>
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<p>
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Alexander Bobkov (Alex) is the author of this comprehensive and practical study guide for Payroll Administration,
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drawing on nearly two decades of hands-on experience in the accounting field. From 2005 to 2022, Alexander successfully
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operated his own accounting firm, offering bookkeeping, accounting, and payroll services to a diverse clientele in the National Capital Regions.
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With a rich educational background that spans from a college diploma to a Master’s degree in Business, he brings both academic insight
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and practical expertise to his work. For the past five years, Alexander has focused specifically on the payroll sector. This study guide reflects
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his long-standing goal: to help professional bookkeepers and business managers to build a solid foundation in payroll administration while easing
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the anxiety often associated with its complexity. Designed to be clear, practical, and empowering, the guide equips readers with the skills needed
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to confidently perform essential payroll functions encountered in day-to-day operations.
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</p>
|
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<div class="toctree-wrapper compound">
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<span id="document-preface">
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</span>
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<section id="preface">
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<h2>
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PREFACE
|
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<a class="headerlink" href="#preface" title="Link to this heading">
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¶
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</a>
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</h2>
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<p>
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Through this material, students will gain a comprehensive understanding of core payroll principles and practices. They will explore legislative compliance requirements and the role of key regulatory bodies that govern payroll operations in Canada.
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</p>
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<p>
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Students will learn how to:
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</p>
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<ul class="simple">
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<li>
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<p>
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Accurately calculate net pay for salaried, hourly, commissioned, and contract employees.
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</p>
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</li>
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<li>
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<p>
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Identify and meet payroll-related obligations for businesses.
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</p>
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</li>
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<li>
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<p>
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Navigate the administrative aspects of human resource management that intersect with payroll responsibilities.
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</p>
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</li>
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<li>
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<p>
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Apply payroll procedures using computerized payroll software through practical, hands-on exercises.
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</p>
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</li>
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<li>
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<p>
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Payroll’s responsibilities from hiring through to termination.
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</p>
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</li>
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<li>
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<p>
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Payroll compliance legislation in practical scenarios.
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</p>
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</li>
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<li>
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<p>
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Individual pay calculation process.
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</p>
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</li>
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</ul>
|
|
<section id="learning-outcomes">
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<h3>
|
|
Learning Outcomes
|
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<a class="headerlink" href="#learning-outcomes" title="Link to this heading">
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|
¶
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</a>
|
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</h3>
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<p>
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|
The material of this study guide aim to make students to be be able to:
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</p>
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<ul class="simple">
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<li>
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<p>
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|
Calculate regular individual pay
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</p>
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</li>
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<li>
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<p>
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Calculate non-regular individual pay
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</p>
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</li>
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<li>
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<p>
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Calculate termination payments
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</p>
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</li>
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<li>
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<p>
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Complete a Record of Employment (ROE)
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</p>
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</li>
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<li>
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<p>
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Apply federal and provincial legislation to payroll, including:
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- The Canada Pension Plan Act
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- The Employment Insurance Act
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- The Income Tax Act
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- Employment Standards legislation
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- Workers’ Compensation Acts
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- Québec-specific legislation
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</p>
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</li>
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</ul>
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</section>
|
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<section id="recommended-course-material">
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<h3>
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Recommended Course Material
|
|
<a class="headerlink" href="#recommended-course-material" title="Link to this heading">
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|
¶
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|
</a>
|
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</h3>
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</section>
|
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<section id="material-structure-overview">
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<h3>
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Material Structure Overview
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<a class="headerlink" href="#material-structure-overview" title="Link to this heading">
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|
¶
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|
</a>
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</h3>
|
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<ol class="arabic simple">
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<li>
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<p>
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|
Introduction to Canadian Payroll
|
|
</p>
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</li>
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<li>
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<p>
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Labour and Employment Standards
|
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</p>
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</li>
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<li>
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<p>
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Accounting for Payroll
|
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</p>
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</li>
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<li>
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<p>
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Calculating Gross Pay
|
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</p>
|
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</li>
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<li>
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<p>
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Pensionable, Insurable, and Taxable Earnings
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</p>
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</li>
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<li>
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<p>
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Calculating Net Pay
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</p>
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</li>
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<li>
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<p>
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Calculating Employer’s Source Deduction Remittances
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</p>
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</li>
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<li>
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<p>
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Termination of Employment:
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</p>
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<ul class="simple">
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<li>
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<p>
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|
Record of Employment (ROE)
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</p>
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</li>
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<li>
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<p>
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|
Termination Payments
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</p>
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</li>
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<li>
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<p>
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|
Retirement Pay
|
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</p>
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</li>
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</ul>
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</li>
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</ol>
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<p>
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In other words, the material covers the foundational knowledge and technical skills needed to confidently perform payroll tasks in a variety of employment settings.
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</p>
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|
</section>
|
|
</section>
|
|
<span id="document-introduction">
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|
</span>
|
|
<section id="introduction">
|
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<h2>
|
|
INTRODUCTION
|
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<a class="headerlink" href="#introduction" title="Link to this heading">
|
|
¶
|
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</a>
|
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</h2>
|
|
<section id="outcomes">
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<h3>
|
|
Outcomes
|
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<a class="headerlink" href="#outcomes" title="Link to this heading">
|
|
¶
|
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</a>
|
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</h3>
|
|
<p>
|
|
Applying federal and provincial payroll legislation, regulations, and policies to ensure compliance with the legal framework governing payroll in Canada.
|
|
</p>
|
|
<blockquote>
|
|
<div>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
CPP/QPP
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
EI
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Income Tax (Federal, ON and QC)
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
</div>
|
|
</blockquote>
|
|
<p>
|
|
Calculating regular individual pay
|
|
</p>
|
|
<p>
|
|
Calculating non-regular individual pay
|
|
</p>
|
|
<p>
|
|
Calculating termination pay
|
|
</p>
|
|
<p>
|
|
Completing a Record of Employment (ROE)
|
|
</p>
|
|
<section id="payroll-legal-framework">
|
|
<h4>
|
|
Payroll Legal Framework
|
|
<a class="headerlink" href="#payroll-legal-framework" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h4>
|
|
<p>
|
|
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.
|
|
</p>
|
|
</section>
|
|
</section>
|
|
</section>
|
|
<span id="document-payroll_accounting">
|
|
</span>
|
|
<section id="payroll-accounting">
|
|
<h2>
|
|
Payroll Accounting
|
|
<a class="headerlink" href="#payroll-accounting" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h2>
|
|
<section id="journal-entries">
|
|
<h3>
|
|
Journal Entries
|
|
<a class="headerlink" href="#journal-entries" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h3>
|
|
<section id="accounting-recap">
|
|
<h4>
|
|
Accounting Recap
|
|
<a class="headerlink" href="#accounting-recap" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h4>
|
|
<p class="centered">
|
|
<strong>
|
|
<img alt="\Sigma \text{ Total Debits} = \Sigma \text{ Total Credits}" class="math" src="_images/math/3fa11f8e69bcb5e9be2df6754a5e4f614450b91c.png" style="vertical-align: 0px"/>
|
|
</strong>
|
|
</p>
|
|
<p class="centered">
|
|
<strong>
|
|
<img alt="\text{Assets} = \text{Liabilities} + \text{Equity}" class="math" src="_images/math/96afef116a3f4349b6cf21c73cca42773ed21927.png" style="vertical-align: -4px"/>
|
|
</strong>
|
|
</p>
|
|
<div class="math" id="equation-accountingequation">
|
|
<p>
|
|
<span class="eqno">
|
|
(1)
|
|
<a class="headerlink" href="#equation-accountingequation" title="Link to this equation">
|
|
¶
|
|
</a>
|
|
</span>
|
|
<img alt="Assets = Liabilities + Equity" src="_images/math/f8b2faa121474b0dd0e28fef8ac413a56b6313b2.png"/>
|
|
</p>
|
|
</div>
|
|
<p>
|
|
Furthermore, we know that:
|
|
</p>
|
|
<p class="centered">
|
|
<strong>
|
|
<img alt="\text{Equity = Revenue - Expenses}" class="math" src="_images/math/020e49c3f9c40699b77e19e0a2b684d246ea21bb.png" style="vertical-align: -4px"/>
|
|
, which leads us to:
|
|
</strong>
|
|
</p>
|
|
<p class="centered">
|
|
<strong>
|
|
<img alt="\text{Assets = Liabilities + (Revenues - Expenses)}" class="math" src="_images/math/547c7611976b4041740caa3335735c193069bb84.png" style="vertical-align: -5px"/>
|
|
</strong>
|
|
</p>
|
|
<p>
|
|
Accounting equation
|
|
<a class="reference internal" href="#equation-accountingequation">
|
|
(1)
|
|
</a>
|
|
</p>
|
|
<p>
|
|
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-related expenses. The system is designed to automate these processes, ensuring accuracy and compliance with Canadian payroll regulations.
|
|
</p>
|
|
</section>
|
|
<section id="id1">
|
|
<h4>
|
|
Journal Entries
|
|
<a class="headerlink" href="#id1" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h4>
|
|
<p>
|
|
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.
|
|
</p>
|
|
<div class="line-block">
|
|
<div class="line">
|
|
DR Payroll Expenses $10,500.00
|
|
</div>
|
|
<div class="line-block">
|
|
<div class="line">
|
|
CR Payroll Payable $10,500.00
|
|
</div>
|
|
</div>
|
|
</div>
|
|
</section>
|
|
</section>
|
|
</section>
|
|
<span id="document-review_questions">
|
|
</span>
|
|
<section id="review-questions">
|
|
<h2>
|
|
REVIEW QUESTIONS
|
|
<a class="headerlink" href="#review-questions" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h2>
|
|
<p>
|
|
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.
|
|
</p>
|
|
<section id="new-employee-information">
|
|
<h3>
|
|
New Employee Information
|
|
<a class="headerlink" href="#new-employee-information" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h3>
|
|
<p>
|
|
Which one of the following is correct?
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
<strong>
|
|
a.
|
|
</strong>
|
|
Choice A
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
<strong>
|
|
b.
|
|
</strong>
|
|
Choice B
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
<strong>
|
|
c.
|
|
</strong>
|
|
Choice C
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
</section>
|
|
</section>
|
|
<span id="document-onboarding_employee">
|
|
</span>
|
|
<section id="obnoarding-employee">
|
|
<h2>
|
|
🍁 OBNOARDING EMPLOYEE 🍁
|
|
<a class="headerlink" href="#obnoarding-employee" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h2>
|
|
<p>
|
|
In the context of Canadian payroll administration, onboarding an employee refers to the formal process of integrating a new hire into
|
|
both the organizational and payroll systems. It ensures that the employee is properly registered, legally compliant, and ready to be paid
|
|
accurately and on time.
|
|
</p>
|
|
<p>
|
|
Key Steps on Onboarding an Employee:
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
Collect Required Personal Information: Includes full legal name, address, date of birth, and Social Insurance Number (SIN). The SIN is
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
<p>
|
|
critical for tax reporting to the CRA (Canada Revenue Agency).
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
Obtain Federal & Provincial Tax Forms: New employees must complete Form TD1 (Federal and possibly a Provincial version) to declare tax
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
<p>
|
|
credits and determine income tax withholdings.
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
Set Up Banking Info for Direct Deposit: Employees usually provide a void cheque or bank form to set up electronic payments.
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Register the Employee in the Payroll System: Involves entering all personal and job-related data, assigning a payroll ID, and verifying
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
<p>
|
|
employment status (e.g. full-time, part-time, contract).
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
Enroll in Benefits or Pension Programs: If applicable, the employee may be signed up for group insurance, retirement savings plans (like
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
<p>
|
|
RRSP or pension plans), and other benefits. These deductions must be accurately reflected in payroll.
|
|
</p>
|
|
<ul>
|
|
<li>
|
|
<p>
|
|
Assign Statutory Deductions that Employers must withhold and remit
|
|
</p>
|
|
<blockquote>
|
|
<div>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
CPP (Canada Pension Plan)
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
EI (Employment Insurance)
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Income Tax (based on TD1 form)
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
</div>
|
|
</blockquote>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Confirm Employment Agreement & Start Date
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
<p>
|
|
🍁 Compliance & Record Keeping
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
Employers in Canada are responsible for keeping accurate records of employee data, pay stubs, deductions, and remittances for
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
<p>
|
|
at least 6 years.
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
If audited by CRA, these documents must be readily available.
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Employers must also provide T4 slips by end of February each year to summarize annual earnings and deductions for tax filing.
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
<blockquote>
|
|
<div>
|
|
<p>
|
|
Employment Standards Requirements
|
|
</p>
|
|
</div>
|
|
</blockquote>
|
|
<hr class="docutils"/>
|
|
<p>
|
|
Each province/territory, as well as the federal government, sets minimum employment standards, including:
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
Minimum wage
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Minimum age (may also be governed by other legislation)
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Required pay statement information:
|
|
- Employee name
|
|
- Pay period date
|
|
- Rates of pay and hours worked
|
|
- Gross earnings
|
|
- Itemized deductions
|
|
- Net pay
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
<section id="internal-forms">
|
|
<h3>
|
|
Internal Forms
|
|
<a class="headerlink" href="#internal-forms" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h3>
|
|
<p>
|
|
Typical commencement package forms include:
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
Authorization for hiring
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Direct deposit agreement
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Union membership application
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Benefits enrollment (e.g., health/dental, pension)
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Confidentiality agreement
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
<section id="authorization-for-hiring">
|
|
<h4>
|
|
Authorization for Hiring
|
|
<a class="headerlink" href="#authorization-for-hiring" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h4>
|
|
<p>
|
|
This internal document includes:
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
New employee’s basic info
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Start date, department, salary
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Probation details
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Hiring authority’s signature
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
<p>
|
|
<strong>
|
|
Important:
|
|
</strong>
|
|
Employer must obtain a valid SIN. A SIN starting with 9 must have a valid expiry date and associated work permit.
|
|
</p>
|
|
</section>
|
|
<section id="union-membership">
|
|
<h4>
|
|
Union Membership
|
|
<a class="headerlink" href="#union-membership" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h4>
|
|
<p>
|
|
For unionized workplaces:
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
Amount of union dues to be deducted
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Employees signature authorization for deduction
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Exemptions may apply, but dues equivalent still required
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
</section>
|
|
<section id="benefit-enrollment-forms">
|
|
<h4>
|
|
Benefit Enrollment Forms
|
|
<a class="headerlink" href="#benefit-enrollment-forms" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h4>
|
|
<p>
|
|
Forms cover group insurance and pension plans:
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
Employee indicates coverage type
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Signatures authorize payroll deductions
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
</section>
|
|
<section id="confidentiality-agreement">
|
|
<h4>
|
|
Confidentiality Agreement
|
|
<a class="headerlink" href="#confidentiality-agreement" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h4>
|
|
<p>
|
|
A legally binding agreement protecting sensitive company info:
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
Defines proprietary data
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Outlines responsibilities, penalties, and timeframe
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
</section>
|
|
</section>
|
|
<section id="required-federal-and-provincial-territorial-forms">
|
|
<h3>
|
|
Required Federal and Provincial/Territorial Forms
|
|
<a class="headerlink" href="#required-federal-and-provincial-territorial-forms" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h3>
|
|
<p>
|
|
<strong>
|
|
Purpose:
|
|
</strong>
|
|
Determine correct income tax withholdings.
|
|
</p>
|
|
<p>
|
|
Forms:
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
TD1 (Federal)
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
TD1 (Provincial/Territorial)
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
TP-1015.3-V (Québec employees)
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
<p>
|
|
<strong>
|
|
Provincial/territorial withholding
|
|
</strong>
|
|
is based on
|
|
<em>
|
|
province of employment
|
|
</em>
|
|
, but tax liability is based on
|
|
<em>
|
|
province of residence
|
|
</em>
|
|
.
|
|
</p>
|
|
<p>
|
|
<strong>
|
|
Adjustments:
|
|
</strong>
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
Request extra withholding via TD1 or TP-1015.3-V
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Request reduction using CRA Form T1213 or RQ Form TP-1016-V
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
<p>
|
|
Essential Info on All Forms:
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
Employee name
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Date of birth
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Social Insurance Number
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
<section id="tax-credits-td1">
|
|
<h4>
|
|
Tax Credits (TD1)
|
|
<a class="headerlink" href="#tax-credits-td1" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h4>
|
|
<ol class="arabic simple">
|
|
<li>
|
|
<p>
|
|
Basic personal amount
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Canada caregiver (infirm children)
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Age amount
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Pension income
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Tuition
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Disability
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Spouse/common-law partner amount
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Eligible dependant
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Caregiver for infirm spouse or dependant
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Caregiver for dependant age 18+
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Transfers from spouse
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Transfers from dependant
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Total
|
|
</p>
|
|
</li>
|
|
</ol>
|
|
<p>
|
|
Additional Instructions:
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
Fill out TD1 only if claiming more than basic credit
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Québec employees must always complete TP-1015.3-V
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
</section>
|
|
<section id="tax-credits-tp-1015-3-v-quebec">
|
|
<h4>
|
|
Tax Credits (TP-1015.3-V – Québec)
|
|
<a class="headerlink" href="#tax-credits-tp-1015-3-v-quebec" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h4>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
Basic amount
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Transfer from spouse
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Amount for dependants
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Impairment in mental/physical function
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Age amount, retirement income, living alone
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Career extension
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
<p>
|
|
Deductions:
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
Remote area housing
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Deductible support payments
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
</section>
|
|
<section id="entering-employee-information-into-sage50">
|
|
<h4>
|
|
Entering Employee Information into Sage50
|
|
<a class="headerlink" href="#entering-employee-information-into-sage50" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h4>
|
|
<p>
|
|
To enter a new employee into the Sage 50 Payroll module (Canada edition), start by navigating to the Employees & Payroll section in the
|
|
Home window. Right-click the Employees icon and choose “Add Employee” to begin creating employee’s record. Input the employee’s full legal
|
|
name. Then, proceed to fill in the personal and payroll details across several tabs: the Personal tab for birth date and contact info, the Taxes tab to select the appropriate provincial
|
|
tax table, the Income tab to configure their pay frequency, and the Deductions tab to define benefit or pension deductions. You’ll also
|
|
want to enter their bank details for direct deposit. For compliance, be sure to complete and store signed TD1 forms (Federal and Provincial)
|
|
separately, as Sage50 does not automatically generate these. You’ll also need to set up EI, CPP, and Income Tax deductions and link them to remittance vendors in the system. Once all
|
|
information is reviewed for accuracy, save and close the record to finalize setup. If you prefer a guided approach, Sage50 also offers
|
|
an Employee Wizard to walk you through these steps.
|
|
</p>
|
|
<section id="entering-personal-information">
|
|
<h5>
|
|
Entering Personal Information
|
|
<a class="headerlink" href="#entering-personal-information" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h5>
|
|
<div class="admonition important">
|
|
<p class="admonition-title">
|
|
Important
|
|
</p>
|
|
<p>
|
|
To maintain accuracy and compliance in Sage 50 Payroll, carefully verify that all employee information entered into the system,
|
|
including full legal name, Social Insurance Number (SIN), residential address, and compensation details, matches the data provided on
|
|
official documentation such as the signed employment contract and government-issued identification (e.g. driver’s licence, Employment Contract).
|
|
Double-checking these entries helps prevent administrative errors and ensures that payroll records remain consistent with legal and
|
|
regulatory standards.
|
|
</p>
|
|
</div>
|
|
<img alt="_images/onboarding-employee_001.png" src="_images/onboarding-employee_001.png"/>
|
|
</section>
|
|
<section id="entering-work-details">
|
|
<h5>
|
|
Entering Work Details
|
|
<a class="headerlink" href="#entering-work-details" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h5>
|
|
<img alt="_images/onboarding-employee_002.png" src="_images/onboarding-employee_002.png"/>
|
|
</section>
|
|
<section id="setting-up-tax-deductions">
|
|
<h5>
|
|
Setting-up Tax Deductions
|
|
<a class="headerlink" href="#setting-up-tax-deductions" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h5>
|
|
<img alt="_images/onboarding-employee_003.png" src="_images/onboarding-employee_003.png"/>
|
|
</section>
|
|
<section id="entering-employee-compensation">
|
|
<h5>
|
|
Entering Employee Compensation
|
|
<a class="headerlink" href="#entering-employee-compensation" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h5>
|
|
<img alt="_images/onboarding-employee_004.png" src="_images/onboarding-employee_004.png"/>
|
|
</section>
|
|
<section id="specifying-employee-deductions">
|
|
<h5>
|
|
Specifying Employee Deductions
|
|
<a class="headerlink" href="#specifying-employee-deductions" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h5>
|
|
<img alt="_images/onboarding-employee_005.png" src="_images/onboarding-employee_005.png"/>
|
|
</section>
|
|
<section id="entering-wsib-other-expenses">
|
|
<h5>
|
|
Entering WSIB & Other Expenses
|
|
<a class="headerlink" href="#entering-wsib-other-expenses" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h5>
|
|
<img alt="_images/onboarding-employee_006.png" src="_images/onboarding-employee_006.png"/>
|
|
</section>
|
|
</section>
|
|
<section id="review-questions">
|
|
<h4>
|
|
Review Questions
|
|
<a class="headerlink" href="#review-questions" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h4>
|
|
<ol class="arabic">
|
|
<li>
|
|
<p>
|
|
What is the significance of accurately entering the “Date Hired” field when setting up a new employee profile in Sage 50?
|
|
</p>
|
|
<p>
|
|
<em>
|
|
Accurately entering the “Date Hired” in Sage 50 is a critical step in ensuring the integrity of payroll records and overall HR
|
|
compliance. This field defines the employee’s official start date, which determines pay cycle alignment, benefit entitlement periods,
|
|
and the correct application of mandatory deductions such as CPP and EI. It also plays a pivotal role in historical payroll
|
|
reporting—including audit readiness and the generation of year-end T4 slips. Furthermore, the hire date is essential when preparing a
|
|
Record of Employment (ROE), as it establishes the starting point for the employee’s insurable earnings and service duration.
|
|
</em>
|
|
</p>
|
|
</li>
|
|
</ol>
|
|
<p>
|
|
2. Within the scope of Payroll Administration, how should the department ethically and legally respond when a supervisor requests access
|
|
to an employee’s date of birth for the purpose of workplace recognition, given that this personal information is already held by payroll?
|
|
</p>
|
|
<blockquote>
|
|
<div>
|
|
<p>
|
|
<em>
|
|
Under Canadian payroll administration and the Personal Information Protection and Electronic Documents Act (PIPEDA), sharing an
|
|
employee’s date of birth — even for positive intentions like workplace recognition, is not legally or ethically appropriate.
|
|
</em>
|
|
</p>
|
|
<p>
|
|
<em>
|
|
PIPEDA requires employers to:
|
|
</em>
|
|
</p>
|
|
<blockquote>
|
|
<div>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
Limit the collection, use, and disclosure of personal information to what is necessary for clearly identified business purposes.
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Obtain meaningful consent before using personal data for any purpose beyond what it was originally collected for—such as payroll or benefits administration.
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Protect employee privacy by restricting access to personal information on a strict need-to-know basis.
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
</div>
|
|
</blockquote>
|
|
<p>
|
|
<em>
|
|
In this case, using the date of birth for celebrations or acknowledgments is outside the scope of payroll processing. Even if the
|
|
Payroll department holds this information, it cannot be disclosed to supervisors or other staff.
|
|
</em>
|
|
</p>
|
|
</div>
|
|
</blockquote>
|
|
</section>
|
|
</section>
|
|
<section id="content-review-highlights">
|
|
<h3>
|
|
Content Review Highlights
|
|
<a class="headerlink" href="#content-review-highlights" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h3>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
Consent is required for personal info collection
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
TD1 and TP-1015.3-V are used to calculate source deductions
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Claim amounts may differ between federal and provincial forms
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Employers must keep the forms on file (do not send to CRA/RQ)
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
</section>
|
|
<section id="review-questions-sample">
|
|
<h3>
|
|
Review Questions (Sample)
|
|
<a class="headerlink" href="#review-questions-sample" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h3>
|
|
<ol class="arabic simple">
|
|
<li>
|
|
<p>
|
|
What does an offer letter signature signify?
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
What documents are included in a commencement package?
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Name three common internal forms
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
What must payroll verify on a hiring form?
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
What must be checked for SINs starting with “9”?
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
True/False: Union dues can be deducted without consent.
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
What authorizes benefit premium deductions?
|
|
</p>
|
|
</li>
|
|
</ol>
|
|
</section>
|
|
<section id="example-evaluations">
|
|
<h3>
|
|
Example Evaluations
|
|
<a class="headerlink" href="#example-evaluations" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h3>
|
|
<p>
|
|
<strong>
|
|
Gloria Meyer (Alberta):
|
|
</strong>
|
|
- Claimed: Basic, eligible dependant, transferred tuition
|
|
- Appears accurate
|
|
</p>
|
|
<p>
|
|
<strong>
|
|
Luc Laframboise (Québec):
|
|
</strong>
|
|
- Claimed: Basic, spouse, dependant in school, tuition transfer
|
|
- Appropriate provincial and federal claims made
|
|
</p>
|
|
<p>
|
|
<strong>
|
|
Ingrid Johansson (Alberta, Single Parent):
|
|
</strong>
|
|
- Claimed credits for two children
|
|
-
|
|
<strong>
|
|
Overclaimed
|
|
</strong>
|
|
dependant credit – only one is eligible
|
|
- Needs correction on federal and AB TD1 forms
|
|
</p>
|
|
<div class="admonition-onboarding-employee-exercise admonition">
|
|
<p class="admonition-title">
|
|
ONBOARDING EMPLOYEE EXERCISE
|
|
</p>
|
|
<p>
|
|
Using MS Forms, create a questionaire for gathering all required information for onboarding a new employee at Quebec-based company for the payroll purposes.
|
|
</p>
|
|
</div>
|
|
</section>
|
|
</section>
|
|
<span id="document-TD1">
|
|
</span>
|
|
<section id="td1">
|
|
<h2>
|
|
TD1
|
|
<a class="headerlink" href="#td1" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h2>
|
|
<section id="td1-2025-personal-tax-credits-return">
|
|
<h3>
|
|
TD1 - 2025 Personal Tax Credits Return
|
|
<a class="headerlink" href="#td1-2025-personal-tax-credits-return" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h3>
|
|
<table class="docutils align-default">
|
|
<tbody>
|
|
<tr class="row-odd">
|
|
<td>
|
|
<p>
|
|
Last name
|
|
</p>
|
|
</td>
|
|
<td>
|
|
</td>
|
|
</tr>
|
|
<tr class="row-even">
|
|
<td>
|
|
<p>
|
|
First name and initial(s)
|
|
</p>
|
|
</td>
|
|
<td>
|
|
</td>
|
|
</tr>
|
|
<tr class="row-odd">
|
|
<td>
|
|
<p>
|
|
Date of birth (Year/Month/Day)
|
|
</p>
|
|
</td>
|
|
<td>
|
|
</td>
|
|
</tr>
|
|
<tr class="row-even">
|
|
<td>
|
|
<p>
|
|
Employee number
|
|
</p>
|
|
</td>
|
|
<td>
|
|
</td>
|
|
</tr>
|
|
<tr class="row-odd">
|
|
<td>
|
|
<p>
|
|
Address
|
|
</p>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
Postal Code
|
|
</p>
|
|
</td>
|
|
</tr>
|
|
</tbody>
|
|
</table>
|
|
<p>
|
|
1. Basic personal amount - Every resident of Canada can enter a basic
|
|
personal amount of $16,129. However, if your net income from all sources will
|
|
be greater than $177,882 and you enter $16,129, you may have an amount owing
|
|
on your income tax and benefit return at the end of the tax year. If your
|
|
income from all sources will be greater than $177,882 you have the option to
|
|
calculate a partial claim. To do so, fill in the appropriate section of Form
|
|
TD1-WS, Worksheet for the 2025 Personal Tax Credits Return, and enter the
|
|
calculated amount here. ^
|
|
</p>
|
|
<p>
|
|
2. Canada caregiver amount for infirm children under age 18 - Only one parent
|
|
may claim $2,687 for each infirm child born in 2008 or later who lives with
|
|
both parents throughout the year. If the child does not live with both
|
|
parents throughout the year, the parent who has the right to claim the
|
|
“Amount for an eligible dependant” on line 8 may also claim the Canada
|
|
caregiver amount for the child. ^
|
|
</p>
|
|
<p>
|
|
3. Age amount - If you will be 65 or older on December 31, 2025, and your net
|
|
income for the year from all sources will be $45,522 or less, enter $9,028.
|
|
You may enter a partial amount if your net income for the year will be
|
|
between $45,522 and $105,709. To calculate a partial amount, fill out the
|
|
line 3 section of Form TD1-WS. ^
|
|
</p>
|
|
<p>
|
|
4. Pension income amount - If you will receive regular pension payments from
|
|
a pension plan or fund (not including Canada Pension Plan, Quebec Pension
|
|
Plan, old age security, or guaranteed income supplement payments), enter
|
|
whichever is less: $2,000 or your estimated annual pension income. ^
|
|
</p>
|
|
<p>
|
|
5. Tuition (full-time and part-time) - Fill in this section if you are a
|
|
student at a university or college, or an educational institution certified
|
|
by Employment and Social Development Canada, and you will pay more than $100
|
|
per institution in tuition fees. Enter the total tuition fees that you will
|
|
pay if you are a full-time or part-time student. ^
|
|
</p>
|
|
<p>
|
|
6. Disability amount - If you will claim the disability amount on your income
|
|
tax and benefit return by using Form T2201, Disability Tax Credit
|
|
Certificate, enter $10,138. ^
|
|
</p>
|
|
<p>
|
|
7. Spouse or common-law partner amount - Enter the difference between the
|
|
amount on line 1 (line 1 plus $2,687 if your spouse or common-law partner is
|
|
infirm) and your spouse’s or common-law partner’s estimated net income for
|
|
the year if two of the following conditions apply:
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
You are supporting your spouse or common-law partner who lives with you
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
Your spouse or common-law partner’s net income for the year will be less
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
<p>
|
|
than the amount on line 1 (line 1 plus $2,687 if your spouse or common-law
|
|
partner is infirm)
|
|
</p>
|
|
<p>
|
|
In all cases, go to line 9 if your spouse or common-law partner is infirm and
|
|
has a net income for the year of $28,798 or less. ^
|
|
</p>
|
|
<p>
|
|
8. Amount for an eligible dependant - Enter the difference between the amount
|
|
on line 1 (line 1 plus $2,687 if your eligible dependant is infirm) and your
|
|
eligible dependant’s estimated net income for the year if all of the
|
|
following conditions apply:
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
You do not have a spouse or common-law partner, or you have a spouse or
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
<p>
|
|
common-law partner who does not live with you and who you are not supporting
|
|
or being supported by
|
|
</p>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
You are supporting the dependant who is related to you and lives with you
|
|
</p>
|
|
</li>
|
|
<li>
|
|
<p>
|
|
The dependant’s net income for the year will be less than the amount on
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
<p>
|
|
line 1 (line 1 plus $2,687 if your dependant is infirm and you cannot claim
|
|
the Canada caregiver amount for infirm children under 18 years of age for
|
|
this dependant)
|
|
</p>
|
|
<p>
|
|
In all cases, go to line 9 if your dependant is18 years or older, infirm, and
|
|
has a net income for the year of $28,798 or less. ^
|
|
</p>
|
|
<p>
|
|
9. Canada caregiver amount for eligible dependant or spouse or common-law
|
|
partner - Fill out this section if, at any time in the year, you support an
|
|
infirm eligible dependant (aged 18 or older)or an infirm spouse or common-law
|
|
partner whose net income for the year will be $28,798 or less. To calculate
|
|
the amount you may enter here, fill out the line 9 section of Form TD1-WS. ^
|
|
</p>
|
|
<p>
|
|
10. Canada caregiver amount for dependant(s) age 18 or older - If, at any
|
|
time in the year, you support an infirm dependant age 18 or older (other than
|
|
the spouse or common-law partner or eligible dependant you claimed an amount
|
|
for on line 9 or could have claimed an amount for if their net income were
|
|
under $18,816) whose net income for the year will be $20,197 or less, enter
|
|
$8,601. You may enter a partial amount if their net income for the year will
|
|
be between $20,197 and $28,798. To calculate a partial amount, fill out the
|
|
line 10 section of Form TD1-WS. This worksheet may also be used to calculate
|
|
your part of the amount if you are sharing it with another caregiver who
|
|
supports the same dependant. You may claim this amount for more than one
|
|
infirm dependant age 18 or older. ^
|
|
</p>
|
|
<p>
|
|
11. Amounts transferred from your spouse or common-law partner - If your
|
|
spouse or common-law partner will not use all of their age amount, pension
|
|
income amount, tuition amount, or disability amount on their income tax and
|
|
benefit return, enter the unused amount. ^
|
|
</p>
|
|
<p>
|
|
12. Amounts transferred from a dependant - If your dependant will not use all
|
|
of their disability amount on their income tax and benefit return, enter the
|
|
unused amount. If your or your spouse’s or common-law partner’s dependent
|
|
child or grandchild will not use all of their tuition amount on their income
|
|
tax and benefit return, enter the unused amount. ^
|
|
</p>
|
|
<p>
|
|
13. TOTAL CLAIM AMOUNT - Add lines 1 to 12. Your employer or payer will use
|
|
this amount to determine the amount of your tax deductions. ^
|
|
</p>
|
|
</section>
|
|
</section>
|
|
<span id="document-calculating-net-pay">
|
|
</span>
|
|
<section id="calculating-net-pay">
|
|
<h2>
|
|
CALCULATING NET PAY
|
|
<a class="headerlink" href="#calculating-net-pay" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h2>
|
|
<section id="salary">
|
|
<h3>
|
|
Salary
|
|
<a class="headerlink" href="#salary" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h3>
|
|
</section>
|
|
<section id="commission">
|
|
<h3>
|
|
Commission
|
|
<a class="headerlink" href="#commission" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h3>
|
|
</section>
|
|
<section id="pension">
|
|
<h3>
|
|
Pension
|
|
<a class="headerlink" href="#pension" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h3>
|
|
</section>
|
|
</section>
|
|
<span id="document-rates_2025">
|
|
</span>
|
|
<section id="rates-for-2025">
|
|
<h2>
|
|
RATES FOR 2025
|
|
<a class="headerlink" href="#rates-for-2025" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h2>
|
|
<section id="canada-quebec-pension-plan-cpp-qpp">
|
|
<h3>
|
|
CANADA / QUEBEC PENSION PLAN (CPP / QPP)
|
|
<a class="headerlink" href="#canada-quebec-pension-plan-cpp-qpp" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h3>
|
|
<table class="docutils align-left" id="id1">
|
|
<caption>
|
|
<span class="caption-text">
|
|
CANADA / QUEBEC PENSION PLAN (CPP / QPP)
|
|
</span>
|
|
<a class="headerlink" href="#id1" title="Link to this table">
|
|
¶
|
|
</a>
|
|
</caption>
|
|
<colgroup>
|
|
<col style="width: 68.4%"/>
|
|
<col style="width: 15.8%"/>
|
|
<col style="width: 15.8%"/>
|
|
</colgroup>
|
|
<thead>
|
|
<tr class="row-odd">
|
|
<th class="head">
|
|
<p>
|
|
Description
|
|
</p>
|
|
</th>
|
|
<th class="head">
|
|
<p>
|
|
CPP
|
|
</p>
|
|
</th>
|
|
<th class="head">
|
|
<p>
|
|
QPP
|
|
</p>
|
|
</th>
|
|
</tr>
|
|
</thead>
|
|
<tbody>
|
|
<tr class="row-even">
|
|
<td>
|
|
<p>
|
|
Yearly maximum pensionable earnings
|
|
</p>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
$71,300
|
|
</p>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
$
|
|
</p>
|
|
</td>
|
|
</tr>
|
|
<tr class="row-odd">
|
|
<td>
|
|
<p>
|
|
Annual maximum contributory earnings
|
|
</p>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
$67,800
|
|
</p>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
$
|
|
</p>
|
|
</td>
|
|
</tr>
|
|
<tr class="row-even">
|
|
<td>
|
|
<p>
|
|
Annual maximum contribution
|
|
</p>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
$3,500
|
|
</p>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
$
|
|
</p>
|
|
</td>
|
|
</tr>
|
|
<tr class="row-odd">
|
|
<td>
|
|
<p>
|
|
Employee contribution rate
|
|
</p>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
5.95%
|
|
</p>
|
|
</td>
|
|
<td>
|
|
</td>
|
|
</tr>
|
|
<tr class="row-even">
|
|
<td>
|
|
<p>
|
|
Employer contribution rate
|
|
</p>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
5.95%
|
|
</p>
|
|
</td>
|
|
<td>
|
|
</td>
|
|
</tr>
|
|
<tr class="row-odd">
|
|
<td>
|
|
<p>
|
|
Basic exemption (Annual)
|
|
</p>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
$3,500
|
|
</p>
|
|
</td>
|
|
<td>
|
|
</td>
|
|
</tr>
|
|
<tr class="row-even">
|
|
<td>
|
|
<blockquote>
|
|
<div>
|
|
<p>
|
|
Basic exemption (Monthly, 12)
|
|
</p>
|
|
</div>
|
|
</blockquote>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
$291.67
|
|
</p>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
$
|
|
</p>
|
|
</td>
|
|
</tr>
|
|
<tr class="row-odd">
|
|
<td>
|
|
<blockquote>
|
|
<div>
|
|
<p>
|
|
Basic exemption (Weekly, 52)
|
|
</p>
|
|
</div>
|
|
</blockquote>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
$67.31
|
|
</p>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
$
|
|
</p>
|
|
</td>
|
|
</tr>
|
|
<tr class="row-even">
|
|
<td>
|
|
<blockquote>
|
|
<div>
|
|
<p>
|
|
Basic exemption (Weekly, 53)
|
|
</p>
|
|
</div>
|
|
</blockquote>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
$66.04
|
|
</p>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
$
|
|
</p>
|
|
</td>
|
|
</tr>
|
|
<tr class="row-odd">
|
|
<td>
|
|
<blockquote>
|
|
<div>
|
|
<p>
|
|
Basic exemption (Semi-monthly, 24)
|
|
</p>
|
|
</div>
|
|
</blockquote>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
$145.83
|
|
</p>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
$
|
|
</p>
|
|
</td>
|
|
</tr>
|
|
<tr class="row-even">
|
|
<td>
|
|
<blockquote>
|
|
<div>
|
|
<p>
|
|
Basic exemption (Bi-weekly, 26)
|
|
</p>
|
|
</div>
|
|
</blockquote>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
$134.61
|
|
</p>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
$
|
|
</p>
|
|
</td>
|
|
</tr>
|
|
</tbody>
|
|
</table>
|
|
</section>
|
|
<section id="cpp2-contribution-rates-maximums">
|
|
<h3>
|
|
CPP2 CONTRIBUTION RATES MAXIMUMS
|
|
<a class="headerlink" href="#cpp2-contribution-rates-maximums" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h3>
|
|
<table class="docutils align-left" id="id2">
|
|
<caption>
|
|
<span class="caption-text">
|
|
CPP2 Contribution Rates Maximums
|
|
</span>
|
|
<a class="headerlink" href="#id2" title="Link to this table">
|
|
¶
|
|
</a>
|
|
</caption>
|
|
<colgroup>
|
|
<col style="width: 81.2%"/>
|
|
<col style="width: 18.8%"/>
|
|
</colgroup>
|
|
<thead>
|
|
<tr class="row-odd">
|
|
<th class="head">
|
|
<p>
|
|
Description
|
|
</p>
|
|
</th>
|
|
<th class="head">
|
|
<p>
|
|
Ammount
|
|
</p>
|
|
</th>
|
|
</tr>
|
|
</thead>
|
|
<tbody>
|
|
<tr class="row-even">
|
|
<td>
|
|
<p>
|
|
Additional maximum annual pensionable earnings
|
|
</p>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
$81,200
|
|
</p>
|
|
</td>
|
|
</tr>
|
|
<tr class="row-odd">
|
|
<td>
|
|
<p>
|
|
Employee and employer contribution rate
|
|
</p>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
4%
|
|
</p>
|
|
</td>
|
|
</tr>
|
|
<tr class="row-even">
|
|
<td>
|
|
<p>
|
|
Maximum employee and employer contribution
|
|
</p>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
$396
|
|
</p>
|
|
</td>
|
|
</tr>
|
|
<tr class="row-odd">
|
|
<td>
|
|
<p>
|
|
Maimum annual self-employed contribution
|
|
</p>
|
|
</td>
|
|
<td>
|
|
<p>
|
|
$792
|
|
</p>
|
|
</td>
|
|
</tr>
|
|
</tbody>
|
|
</table>
|
|
</section>
|
|
<section id="references">
|
|
<h3>
|
|
References
|
|
<a class="headerlink" href="#references" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h3>
|
|
<p>
|
|
<a class="reference external" href="https://laws-lois.justice.gc.ca/eng/acts/C-8/page-5.html#docCont">
|
|
CPP Maximum contributory earnings
|
|
</a>
|
|
</p>
|
|
<p>
|
|
<a class="reference external" href="https://laws-lois.justice.gc.ca/eng/acts/C-8/page-3.html#docCont">
|
|
Second additional CPP contributions
|
|
</a>
|
|
</p>
|
|
</section>
|
|
</section>
|
|
<span id="document-references">
|
|
</span>
|
|
<section id="references">
|
|
<h2>
|
|
REFERENCES
|
|
<a class="headerlink" href="#references" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h2>
|
|
<p>
|
|
<a class="reference external" href="https://www.canada.ca/en/revenue-agency/services/e-services/digital-services-businesses/payroll-deductions-online-calculator.html">
|
|
Payroll Deductions Online Calculator
|
|
</a>
|
|
</p>
|
|
</section>
|
|
<span id="document-errata">
|
|
</span>
|
|
<section id="errors-and-errata">
|
|
<h2>
|
|
Errors and Errata
|
|
<a class="headerlink" href="#errors-and-errata" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h2>
|
|
</section>
|
|
<span id="document-syntax">
|
|
</span>
|
|
<section id="title">
|
|
<h2>
|
|
TITLE #
|
|
<a class="headerlink" href="#title" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h2>
|
|
<section id="id1">
|
|
<h3>
|
|
TITLE =
|
|
<a class="headerlink" href="#id1" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h3>
|
|
</section>
|
|
</section>
|
|
</div>
|
|
<section id="glossary">
|
|
<h2>
|
|
Glossary
|
|
<a class="headerlink" href="#glossary" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h2>
|
|
<ul class="simple">
|
|
<li>
|
|
<p>
|
|
<a class="reference internal" href="genindex.html">
|
|
<span class="std std-ref">
|
|
Index
|
|
</span>
|
|
</a>
|
|
</p>
|
|
</li>
|
|
</ul>
|
|
</section>
|
|
</section>
|
|
<section id="canadian-payroll-administration">
|
|
<h1>
|
|
Canadian Payroll Administration
|
|
<a class="headerlink" href="#canadian-payroll-administration" title="Link to this heading">
|
|
¶
|
|
</a>
|
|
</h1>
|
|
<div class="highlight-text notranslate">
|
|
<div class="highlight">
|
|
<pre><span></span>Python 3.12.3
|
|
</pre>
|
|
</div>
|
|
</div>
|
|
<div class="highlight-text notranslate">
|
|
<div class="highlight">
|
|
<pre><span></span>5
|
|
</pre>
|
|
</div>
|
|
</div>
|
|
</section>
|
|
<div class="clearer">
|
|
</div>
|
|
</div>
|
|
</div>
|
|
</div>
|
|
<div class="clearer">
|
|
</div>
|
|
</div>
|
|
<article id="back-cover">
|
|
<div class="container">
|
|
<div class="back-cover-footer">
|
|
<p>
|
|
© Copyright 2025.
|
|
</p>
|
|
<p>
|
|
Created using
|
|
<a href="http://sphinx-doc.org/">
|
|
Sphinx
|
|
</a>
|
|
8.2.3.
|
|
</p>
|
|
</div>
|
|
</div>
|
|
</article>
|
|
</body>
|
|
</html>
|