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CanadianPayroll/docs/source/introduction.rst
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INTRODUCTION TO CANADIAN PAYROLL
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Payroll is a necessary function in every organization that has employees,
as each employee expects to be paid for the work they perform. While the
amount of maximum remuneration that an employee receives for their work is
not legislated by any government (unless the employee is a federal or
provincial/territorial civil servant), there is legislation in place at
both the federal and provincial/territorial levels that governs many
aspects of processing employees' pay, their taxable benefits and observing
their rights as employees.
t is important to note that this course deals with payroll, the function of paying employees
for work performed for employers. Self-employed workers or contractors, who submit
invoices for the work they perform and receive payment through accounts payable and not
payroll, are not employees.
Both the federal and the Québec governments provide factors that can be used to determine
whether an employee-employer relationship exists. It is crucial to know how to determine the
type of relationship that exists between the worker and the organization and to ensure that
any payments made comply with legislation.
Payroll Objectives and Definitions
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The **primary objective of the payroll function** in every organization is to
pay employees accurately and on time, in compliance with legislative
requirements, for a full annual payroll cycle.
Every employee expects to receive their pay on the day it is due in the
manner arranged with their employer, either by cheque or direct deposit.
In addition to ensuring that employees have been paid, payroll
practitioners must also be able to communicate payroll information to
all stakeholders.
- Payroll is the process of paying employees in exchange for the services
they perform.
- Legislation refers to laws enacted by a legislative body. In Canada
there are many legislative sources that payroll practitioners must comply
with at two separate levels ─ the federal and the provincial/territorial
governments. Later in the chapter we will explore the compliance
requirements for the various pieces of legislation from these sources.