Source Deductions of Support Payments and Arrears
If you periodically make payments to someone (an employee or beneficiary) who has to pay support or arrears, you may be required to make source deductions on the following:
- a salary, wages or other remuneration, including vacation pay
- professional fees and advances on remuneration, fees or profits
- amounts paid under a profit-sharing plan
- retiring allowances (also known as “severance pay”)
- disability benefits paid under a sickness or accident insurance plan
- benefits paid under a pension plan or a compensation plan
In the case of part-time employees, employees doing contract work for limited periods, or employees on call, support must be deducted when remuneration is paid. However, depending on the circumstances, we may opt for a different method of collection.
For more information, refer to the brochure Support Payments: Source Deductions (IN-902-V).