Overview of Payroll in Canada

Overview of Payroll in Canada

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Canada has federal and provincial taxes as well as variations in provinces for other payments, types of leave and deductions. Quebec has its own regulations for many aspects of payroll. Plus, there are different tax tables to be used based on the different types of payment which many people won’t be used to. All of this can make payroll in Canada appear to be quite complicated at first. In addition, there are a range of social insurances and a wide range of types of family leave with different qualifying rules, some may incur payments and others may only give employees the right to time off.

Who is this course for?

This course is aimed at those Payroll & HR Professionals who are processing or managing Vendors who process Payrolls in Canada and need to have an understanding of the legislative and legal requirements involved.

What will you achieve?

Having attended this course delegates will have confidence that they understand the fundamentals of payroll processing in Canada, are clear about employer obligations, know what they need to do on a periodic and annual basis, can answer employee queries and check payslips. Even if payrolls are outsourced it is still the employer’s responsibility to ensure all obligations are met and that income tax and social security are correctly processed. This course not only gives you the information you need to be compliant but also ensures you know exactly what information should be given to a payroll provider and the various tasks they should be completing on your behalf.

Course Trainers

What will be covered?

Country Overview:

  • Country overview
  • Business culture
  • The structure of the tax authorities including the Canadian Revenue Agency (CRA) and the Quebec authorities
  • Operating payroll in Quebec and elsewhere
  • Calculating deductions

Calculating Tax:

  • Tax credits
  • Forms TD1 and TP-105.3-V
  • Federal tax rates
  • Provincial tax rates
  • Gross taxable pay
  • Benefits in kind including company cars
  • and mileage payments for use of a personal car
  • Allowable deductions
  • Tax table
  • Rounding
  • Treatment of one off payments
  • more than one bonus payment in a year and pay arrears
  • Remittances to the CRA including accelerated remittances
  • payments
  • penalties for late remittance
  • forms
  • nil returns
  • Quebec remittances
  • Year-end procedures including year-end tax certificate T4
  • corrections
  • penalty regimes
  • overpayments
  • Quebec procedures
  • Record keeping
  • Calculating deductions
  • Canada pension plan (CPP) including rates
  • thresholds
  • exemptions
  • calculating deductions for exemptions
  • non-resident exemptions
  • Quebec exemption plan
  • pension developments
  • Employment insurance act contributions (EI)
  • exemptions
  • maximum contributions
  • rates including Quebec rates
  • Calculation of EI premium
  • reductions and reduced rates
  • plan requirements
  • employee contributions for reduced EI
  • Recording employment and insurable hours
  • Quebec variances
  • $2
  • 000 threshold
  • Annual PIER review including Quebec charges
  • Health services
  • Commissions des Normes du travail
  • Employment and social development Canada (ESDC)
  • Welfare skills and development recognition fund and the Commission for Health and Safety in Quebec
  • First nation employees
  • Canadian labour code
  • Leave:

  • Annual holidays and holiday pay for federal regulated employees and non federal regulated employees
  • Public holidays
  • Sick leave
  • Maternity leave
  • Parental leave
  • Paternity leave – Quebe
  • Personal emergency leave
  • Family caregiver leave
  • Family medical leave
  • Critically ill childcare leave
  • Organ donor leave
  • Crime related child death and disappearance leave
  • Reservist leave
  • Interaction between the different types of leave
  • National minimum wage
  • Summary
    The range and complexities of rules and practices for payroll across the different provinces of Canada make this overview course essential. Delegates will gain confidence in and familiarity with employers’ obligations and the fundamentals of this complicated system to keep you fully compliant.