Calculating Source Deductions and Employer Contributions
When, during a calendar year, you pay remuneration (salary or wages (This link will open a new window), or any other amount), you must generally:
- withhold and remit
- calculate and pay your employer
- QPP contribution,
- QPIP premium,
- contribution to the health services fund,
- contribution to the Workforce Skills Development and Recognition Fund (WSDRF), if applicable; and
- calculate and pay your contribution related to labour standards.
You may also have to make periodic payments for the Commission des normes, de l'équité, de la santé et de la sécurité du travail.
Every amount you deduct, withhold or collect as an employer or a payer pursuant to a fiscal law is deemed to be held in trust for the government until you remit the amount to the government in the prescribed manner and within the prescribed time period. Such amounts constitute a separate fund that is not part of your property.
If you deduct support payments from the salary or wages you pay to an employee, consult Source Deductions of Support Payments and Arrears.
Calculating source deductions and contributions in certain situations
Certain situations and special cases can modify the calculation of source deductions and employer contributions. Before you make source deductions and pay employer contributions, you must take into account:
- the situation of the employee (such as an employee on phased retirement)
- your situation as an employer or a payer (such as an employer succeeding another employer)
- the type of employment held by the employee
- the type of remuneration paid
To find out what source deductions you must make and what employer contributions you must pay on:
- specific types of remuneration, complete the interactive questionnaire;
- all types of remuneration, consult the table under Remuneration Subject to Source Deductions and Employer Contributions.