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Canada Payroll Guide (Source Deductions, T4, Remittances)

the payroll in Canada. The employer must deduct the source deductions from the employee's wages — the CPP contributions (the employee share at 5.95% of the pensionable earnings, 2025), the EI premiums (the employee share at 1.64% of the insurable earnings, 2025), and the income tax (the federal + provincial tax based on the TD1 form). The employer pays the matching share of the CPP (5.95%) and the EI (1.4x the employee premium — the employer rate is 2.30% for the 2025 year). The payroll registration — the employer must register for the RP account (the "Payroll Deductions" program account — the BN + the "RP" program code). The payroll remittances — the employer must remit the source deductions to the CRA by the 15th of the following month (the "regular remitter" — the monthly due date) or by the 3rd of the following month (the "accelerated remitter" — the larger employers). The T4 (the "Statement of Remuneration Paid") — the annual summary of the employee's earnings and the deductions. The T4 filing deadline is February 28 of the following year (the "T4 filing deadline" — the T4 summary and the T4 slips must be filed with the CRA by the end of February). The Record of Employment (ROE) is issued to the employee when the employment ends (the "ROE" — the electronic filing to the Service Canada). The payroll penalties — the CRA charges the penalties for the late remittances (the "failure to remit" penalty at 3% to 20% of the remittance amount). The Quebec payroll — the employer in Quebec must also register with the Revenu Québec for the QPIP (the Quebec Parental Insurance Plan), the QPFC (the Quebec Pension Plan), and the QHSF (the Quebec Health Services Fund).

Source Deductions

• CPP (2025): 5.95% (employee) on the pensionable earnings between $3,500 and $71,300. The employee maximum is $4,034. The CPP2 contributions at 4% on the earnings above $71,300 up to $81,200. The employer must match the employee's CPP contributions (the employer CPP of 5.95% plus the employer CPP2 of 4%).
• EI (2025): 1.64% (employee) on the insurable earnings up to $65,700. The employee maximum is $1,077. The employer must pay 1.4x the employee's EI premiums (the employer rate is 2.30% — the "employer EI premium" at 1.4x the employee premium).
• Income tax: The federal and the provincial income tax is deducted based on the TD1 form (the "Personal Tax Credits Return" — the employee's claim for the basic personal amount, the tuition credits, the disability credits). The employer uses the CRA's "Payroll Deductions Online Calculator" (the PDOC) to calculate the withholding tax.
• Quebec-specific deductions: The QPIP (the Quebec Parental Insurance Plan) — the employee pays 0.494% (2025) and the employer pays 0.692%. The QHSF (the Quebec Health Services Fund) — the employer pays up to 4.26% of the payroll. The QPFC (the Quebec Pension Plan — the QPP contributions at 6.4% employee and 6.4% employer).

Payroll Remittances

• Regular remitter: The employer whose monthly remittance is less than $50,000 (the "regular remitter" — the remittance is due by the 15th of the following month).
• Accelerated remitter: The employer whose monthly remittance is $50,000+ (the "accelerated remitter" — the remittance is due by the 3rd of the following month). The "threshold 1" remitter (the monthly remittance $50,000+) and the "threshold 2" remitter (the monthly remittance $1.5 million+).
• Large employer: The employer whose monthly remittance is $1.5 million+ (the "large employer" — the remittance is due on the 3rd of the following month, and the employer must remit the "quarterly instalments" — the estimated remittances).
• Late remittance penalty: The CRA charges the penalty at 3% of the unremitted amount (the first late remittance), increasing to 10% (the second late remittance in 3 years) and 20% (the subsequent late remittances).

T4 Filing

• T4 slip: The "Statement of Remuneration Paid" — the summary of the employee's earnings (the "Box 14 — the employment income") and the deductions (the "Box 16 — the CPP contributions", the "Box 18 — the EI premiums", the "Box 22 — the income tax deducted").
• T4 filing deadline: February 28 of the following year. The T4 summary (the "T4 Summary of the Remuneration Paid") must be filed with the CRA by the end of February. The T4 slips must be provided to the employees by February 28.
• T4A slip: The "Statement of Pension, Retirement, Annuity, and Other Income" — the summary of the pension payments, the commission payments, the self-employed commission payments, and the other non-employment income.

Record of Employment (ROE)

• ROE filing: The employer must issue the ROE (the "Record of Employment") to the employee when the employment ends (the "interruption of the earnings" — the lay-off, the resignation, the termination, the illness, the maternity leave). The ROE is filed electronically (the "ROE Web" or the "ROE Electronic" — the Service Canada portal).
• ROE deadline: The ROE must be issued within 5 calendar days of the interruption of the earnings (the "ROE issue deadline"). The electronic ROE is filed through the Service Canada's "ROE Web" portal.

For the hiring employees and the employer obligations, see our Hiring Employees Guide →. For the employee vs contractor distinction, see our Employee vs Contractor Guide →.